Footwear Insight

fulfill online orders and has seen adoption of its recently launched drive-up pick-up service quickly surpass BOPIS (Buy Online, Pick-Up In Store). As for the chain's overall B-T-S approach, CEO Michelle Gass says it is planning "very prudently and cautiously," but will bring in fresh merchandise for the season. Zumiez CEO Rick Brooks recently told analysts that the lifestyle chain, which grew its online sales nearly 76 percent during the last two months of the first quarter, believes the banner's young customer has "pent- up demand from two months of quarantine and is looking for newness and interactions with the brands they trust…And we believe there's less competition for discretionary dollars." The chain's merchandising team worked diligently to cancel or push out orders in the first quarter due to the pandemic, ending the period with only a 0.3 percent increase in year-over-year inventory. "We feel there are just so many uncertain- ties about what B-T-S is going to look like," Brooks said. "We certainly have reduced hours. Remember, we're doing these [sales] results in most cases in a large majority of our locations where traffic has been metered between 25 to 50 percent of occupancy. So we're still uncertain about what all that means [and] how does that translate into a peak season?" Nonetheless Zumiez buyers are continuing to pursue fall inventory, particularly in the skate and apparel segments, despite some market supply chain challenges. Foot Locker, which found its apparel business "a little bit difficult" in the first quarter, believes one of the big positives in the upside-down first quarter, when the vast majority of its doors were shuttered, was its omnichannel status, which it plans to leverage even further. "We'll use our digital assets to drive people to the stores," CEO Dick Johnson told ana- lysts. "We'll use our store assets to make sure that we're connecting with people and getting them to look at our digital and social content… I think that consumer has become more adaptive and more comfortable to shop across channels with us." Foot Locker's inventory was up approxi- mately 20 percent at the end of the first quarter. Management is focused on managing the flow of products as its stores reopen. "There are mul- tiple scenarios that we planned against, but I think we've demonstrated how very nimble we are in adjusting that and responding to how our customers are responding to the products," said Lauren Peters, Foot Locker CFO. The many possible impacts on 2020 Back- to-School will require retailers of all sorts to improve their balancing act skills to effectively "walk the tightrope" and reach the other side: The holiday season and a path to a (hopefully) less-pandemic-affected 2021. l THE FOOTWEAR EYE "We feel there are just so many uncertainties about what B-T-S is going to look like." Rick Brooks CEO, Zumiez "We'll use our store assets to make sure that we're connecting with people and getting them to look at our digital and social content." Dick Johnson CEO, Foot Locker Let's Get Up & Running Strong! MADE IN USA KENT, OHIO Call Us To Order – Or For Any Other Request! 800-838-3906 insoles-sorbothane.com W E A R E H E R E F O R Y O U INSOLES 90 DAYS TO PAY FREE SHIPPING DISCOUNT PRICING Sorbothane_Outdorr-Insight-Ad_1.indd 1 5/13/20 2:44 PM footwearinsight.com June 2020 ~ Footwear Insight • 11

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