The country’s first Foot Locker store will be in a prominent Delhi mall and will be based on the American footwear chain’s ‘Store of the Future’ concept
Mumbai: City-based footwear retailer Metro Brands Ltd. (MBL) is set to open its first Foot Locker store in October this year, a source with close knowledge about the development told IndiaRetailing.
MBL has the exclusive rights to own and operate Foot Locker stores in India.
The store will be located in an upscale mall in Delhi, the source said without revealing further details.
“People in the capital are more brand conscious,” the person said explaining the choice of city by the Mumbai-based retailer.
The source also mentioned that Foot Locker stores in India would typically range from 3,000 sq. ft. to 5,000 sq. ft.
The first store will be a ‘store of the future’, a concept New York-based Foot Locker launched in April this year, according to a Foot Locker press note about the new format.
Developed on customer insights, Foot Locker’s ‘store of the future’ features a bold storefront, distinct in-store environment, expanded footwear, and accessory selections, an emphasis on sustainability, dynamic digital fixtures, and other technological advances, the note revealed.
The concept also provides Foot Locker’s sneaker ambassadors, the iconic Stripers, with the ability to elevate their customer service through a sharpened high-tech toolkit, the note added.
As of now, MBL plans to open two to six Foot Locker stores in two to three cities in the current fiscal, the company revealed in November 2023 when announcing its multi-decade licensing agreement with the US-based athletic shoes and apparel retailer.
Foot Locker, Inc., a $8.759 billion powerhouse, is considered a pioneer in global sneaker culture since its inception in 1989. The company operates in North America, Europe, the Middle East, Africa, and Asia Pacific.
Foot Locker is known for its comprehensive collection of premium sneakers and other athletic footwear from a wide range of brands including Nike, Adidas, New Balance, On, Hoka, Mitchell & Ness, Outerstuff, Jordan, Birkenstock, Puma, Asics and UGG among several others.
While Foot Locker will open stores through MBL, it has entered into an exclusive partnership with Nykaa Fashion to sell online in India.
The partnership with Foot Locker gives MBL access to several premium international brands, which it will selectively bring to India considering nuances like climate conditions and regional preferences, the source said.
“As a listed company, MBL is expected to show exceptional growth, which cannot come from doing regular things. This partnership will help Metro gain a larger share of the casual footwear market, so the partnership becomes important from these two perspectives,” said Ankur Bisen, Senior Partner & Head – Consumer, Food & Retail at Technopak Advisors speaking about the partnership.
Through Foot Locker, MBL will be able to gain a larger share of the growing sneaker market, which is projected to grow by 7.85% from 2024 to 2029, resulting in a market volume of $48.77 million in 2029 as per Statista.
“Metro is a speciality footwear retailer with deep knowledge of the business and the Indian market. The partnership with MBL will help Foot Locker navigate the complexity of the Indian market, which is not homogeneous,” Bisen explained sharing the Foot Locker perspective.
Over the years, MBL has emerged as a house of brands strategically adding international brands like Crocs and FitFlop to its portfolio.
According to Bisen, Brands like Crocs contribute about 25% to MBL’s topline and Foot Locker can be expected to contribute significantly too.
“We believe the incremental opportunity in Fila and Foot Locker can further accelerate growth for Metro,” brokerage firm Motilal Oswal said in a report.
The firm believes that Fila and Foot Locker have a revenue potential of Rs15,00 to Rs 2,000 crore over the next three to five years.
According to the Mumbai-based brokerage firm’s report, typically, a Metro store generates an average revenue of Rs 5,000 per square foot with an average selling price (ASP) of Rs 1,450.
“Foot Locker stores typically produce one and a half to two times the revenue of Metro stores,” the source said.
In the fourth quarter of the financial year 2024, MBL recorded a profit of Rs 155.57 crore, up 126.3% from Rs 68.74 crore during the corresponding quarter of the previous fiscal.
The quarter also saw Metro extend its agreement with Crocs India to exclusively operate and own Crocs stores across states in west and south India. The company will also have the rights to continue, renew, and operate all existing stores operational in north and east India.
As of 31 March 2024, MBL operated 836 Stores in 193 cities across 31 Indian states and Union territories.
