Foot Locker has announced a US$275 million capital expenditure program for this year, with Asia singled out as a target market. The investment is $75 million more than the US-headquartered sports-shoe and apparel retailer allowed for last year. “The capital spending planned for this year reflects increased investments in the company’s store fleet in all existing regions, including Asia, and in its digital initiatives,” the company said in a statement.
“In addition, the company will continue to spend capital to build out its supply chain and other infrastructure capabilities.”
Chairman and CEO Richard Johnson said Foot Locker sees “exciting opportunities” to invest in the business this year. The capital commitment followed decisions to launch a share buy-back program and to pay a dividend to shareholders.
“Taken together, these actions demonstrate that our board is confident that Foot Locker can simultaneously deliver strong financial results, invest in the long-term growth of the business, and provide meaningful returns to our shareholders,” he said.
Foot Locker currently operates 3221 stores in 27 countries in North America, Europe, Asia, Australia and New Zealand.
In Singapore, Foot Locker opened three stores last year, in Jem Mall, Century Square and Suntec City.