Foot Locker, one of the biggest footwear retailers in the world, explored a partnership with other retailers, too, for its India entry, but a deal with Metro Brands – itself a specialised footwear retailer – looks more likely, they said.
“The partnership could be either a franchisee agreement or a joint venture,” one of the executives added.
Foot Locker and Metro Brands did not respond to ET’s email seeking comment till press time Saturday.
With a population of 1.39 billion, India is one of the fastest growing and largest international markets for footwear and sportswear brands.
“There is this gap in the footwear segment, which needs to be filled,” said Shriram PM Monga, cofounder of retail consultancy firm SRED. “Multi-brand outlets don’t give much prominence to sports footwear brands though there is a big market to capture.”
More than half-a-dozen leading sports brands crossed annual sales of $1 billion in India in 2021-22, driven by increasing awareness about fitness and surging demand for athleisure wear in the country. Brands such as Puma, Decathlon, Adidas, Reebok, Skechers, Nike and Asics saw a 30-68% year-on-year increase in sales, according to regulatory filings sourced from legal analytics firm Altinfo.
The sales of these brands taken together surged 52% to ₹8,950 crore in 2021-22 from ₹5,871 crore in FY21.
Indian footwear purchases in value terms are expected to grow at a compounded annual growth rate (CAGR) of 15-17% between 2021-22 and 2024-25. The average sale price of footwear is expected to increase at a CAGR of 5-7% over the same period, according to Metro Brands’ annual report.
Foot Locker has over 2,800 retail stores in 28 countries across North America, Europe, Asia, Australia, and New Zealand.
