Foot Locker CEO Says ‘Brick and Mortar Will Never Die’

Foot Locker CEO Mary Dillon told CNBC’s Jim Cramer on Friday that both brick-and-mortar stores, along with online shopping, remain important to the retail sector.

“Brick and mortar will never die and you have to invest in your stores to make them interesting for your customers,” she said. “For certain categories, like sneakers, you’re going to have to always be great in-store and online, because that’s how people want to shop.”

The shoe retailer has struggled in recent years, but posted comparable sales growth for the first time in six quarters when it reported earnings in late August. Dillon, who was CEO of The ultimate beauty before taking over at Foot Locker two years ago, he focused on improving the company’s stores and strengthening brand partnerships.

Dillon said Foot Locker plans to have two-thirds of its stores “refreshed” by the end of 2025. She added that some of the new stores have technology to help determine customers’ shoe sizes, which creates a ” fun digital experience”. The retailer promotes a number of high-profile partnerships, including with the National Basketball Association and NIKE.

Foot Locker’s main demographic is a “younger, multicultural” customer, according to Dillon. These customers are usually early in their careers and have less money to spend, she said, but sneakers are products they prioritize. Dillon also described how the company is “expanding sneaker culture,” saying customers want choices and wear sneakers for a variety of occasions.

“Things are really starting to come together all of a sudden,” Dillon said. “Our brand partnerships are strong, so we have access to the best of the best. Stocks are cleaner so we make sure the best of the best is in front of our customers.”