Dick Johnson to Lead Foot Locker’s U.S. Operations

The reorganization consolidates the management team that oversees its Lady Foot Locker business with the team that currently manages the Foot Locker U.S., Kids Foot Locker and Footaction businesses. Johnson moved from his position as president and CEO of the company's Foot Locker Europe operation, effective Friday. Lewis P. Kimble, managing director of the company's Asia/Pacific division for the past four years, has been promoted to succeed Johnson.

Keith Daly, president and CEO of Foot Locker U.S., Kids Foot Locker and Footaction, is leaving the company. Marla Anderson, president and CEO of Lady Foot Locker, is staying on but her role is being determined, according to Peter Brown, Foot Locker's senior vice president and chief information officer.

“We expect the consolidation of our Foot Locker businesses under the direction of one management team to help us clarify our Foot Locker family of brands position in the retail marketplace,” said Ken Hicks, president and CEO of Foot Locker, Inc.  “It will allow us to sharpen our focus on the female consumer, as we look to improve the coordination of our women's merchandise assortments and marketing strategies across each of our Foot Locker brands.”

FL projected the reorganization and other corporate staff reductions will lead to annual savings of approximately $10 million in fiscal 2010. An after-tax charge of $3 million, or 2 cents per share, will be taken in Q4 to reflect the costs associated with the elimination of approximately 120 positions.

The company also said it is completing its real estate actions for fiscal 2009, working in partnership with its landlords.  For the full year, it currently estimates that it will open 37 new stores, close 190 under-productive stores, and remodel or relocate 160 stores. As a result, 117 stores are expected to be closed during the fourth quarter, a large percentage of which are Foot Locker and Lady Foot Locker stores in the U.S. Foot Locker has been steadily closing underperforming units in the U.S. over the last several years while finding growth in Europe and other international regions. In 2008, Foot Locker opened 64 new stores, closed 208 and remodeled/relocated 230.

Hicks, the former J.C. Penney executive who became Foot Locker's CEO in August 2009, continued, “The work we are doing to strengthen our brand positioning, coupled with steps we are taking to streamline corporate staff functions and enhance our real estate portfolio, is designed to make us a more efficient organization, bolster our already strong financial position and, most importantly, enhance our competitive strength and leadership position now and for the long term.”

Johnson had been president and CEO of Foot Locker Europe since August 2007. Previously, he had been president and CEO of Footlocker.com since 2003. Other roles at Foot Locker included chief operating officer at Footlocker.com and VP, merchandising at Eastbay.

 

Hicks called Johnson “a very strong leader of our successful Foot Locker Europe operation over the past three years and will be a strong addition to our U.S. management team.” He also noted that Kimble has done an outstanding job over the past four years, during which time the business boasted “record levels of sales and profits.”

Daly had been president and CEO of Foot Locker U.S. with responsibility for the company’s Foot Locker, Footaction and Kids Foot Locker stores since August 2007. Prior to taking that role, he had been president and CEO of Foot Locker Europe.