Dive Brief:
- Foot Locker announced a slew of changes to its executive ranks on Tuesday, all effective Dec. 1. Among them was the hire of Elliott Rodgers, who previously served as supply chain and IT chief at Ulta Beauty, as the footwear retailer’s new chief operations officer.
- Frank Bracken, Foot Locker's current COO, is set to become chief commercial officer. The company also promoted Rosalind Reeves, vice president for talent, diversity and organization capability, to chief human resources officers. Reeves replaces Elizabeth Norberg, who is stepping down on Dec. 1 and will depart after a transition period.
- Also leaving the company is Chief Financial Officer Andrew Page, who is set to transition out of the role after Foot Locker’s Q4 report to pursue other opportunities. The retailer said it is starting a search for a new CFO with a recruiting firm.
Dive Insight:
Mary Dillon has made some swift changes since taking on the CEO role in early September. In her first earnings call as chief in November, she announced plans to simplify the footwear retailer, including through a wind down of some European ventures, while making investments in omnichannel and loyalty, among other improvements.
Dillon said on the call that she plans to shift Foot Locker “from being product-led to consumer-led” and is eyeing opportunities to beef up the company’s digital presence and personalization. “At 16%, our e-commerce penetration is below where it should and can be,” she noted at the time.
Now the company is also shaking up its leadership ranks. With Bracken moving from the COO slot to chief commercial officer, he will continue leading Foot Locker’s retail banners, merchandising and marketing, along with digital, loyalty and e-commerce.
Joining Dillon from Ulta is Rodgers, who in Foot Locker’s COO role will oversee supply chain, information technology and procurement.
Explaining the moves, Dillon said in a press release that “separating our commercial activities from our supply chain and IT functions will better position Foot Locker to support growth and enhance operating efficiency”
Analysts with Telsey Advisory Group said in a note on the C-suite changes, “The strengthening of Foot Locker's leadership team is positive, and it seems prudent to have different leaders for operational functions like supply chain and IT and brand building and merchandising.”
The analysts added that they were “somewhat surprised” by the pending departure of Page, given that he started less than two years ago, but also noted that new CEOs commonly pick new CFOs after starting.
While sounding positive notes about the arrival of Dillon and recent announced changes, the Telsey analysts also noted that “the next 6-12 months pose a challenge to execute meaningful progress” at Foot Locker as the retailer faces an over-inventoried and highly promotional market, as well as fewer hot Nike products as the footwear brand shifts strategies toward more DTC sales.
As Foot Locker searches for a new CFO, Robert Higginbotham, vice president of investor relations, is taking on added responsibilities around financial planning and analysis, as well as a title upgrade to senior vice president.
