Foot Locker CEO says ‘brick and mortar is never going to be dead’

Foot Locker CEO Mary Dillon told CNBC's Jim Cramer on Friday that both physical stores alongside online shopping remain important in the retail sector.
"Brick and mortar is never going to be dead, and you have to invest in your stores to make them exciting for your customers," she said. "For certain categories like sneakers, you're always going to have to be great in store and online, because that's how people want to shop."

Foot Locker CEO Mary Dillon told CNBC's Jim Cramer on Friday that both physical stores alongside online shopping remain important in the retail sector.

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"Brick and mortar is never going to be dead, and you have to invest in your stores to make them exciting for your customers," she said. "For certain categories like sneakers, you're always going to have to be great in store and online, because that's how people want to shop."

The shoe retailer has struggled over the past several years, but it saw comparable sales growth for the first time in six quarters when it reported earnings in late August. Dillon, who served as the CEO of Ulta Beauty before taking the reigns at Foot Locker two years ago, has focused on improving the company's stores and strengthening brand partnerships.

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Dillon said the Foot Locker plans to have two thirds of its stores "refreshed" by the end of 2025. She added that some of the new stores feature technology to help figure out customers' shoe sizes, which creates a "fun digital experience." The retailer touts a number of high-profile partnerships, including with the National Basketball Association and Nike.

Foot Locker's primary demographic is a "younger, multicultural" customer, according to Dillon. These customers are usually early career and have less money to spend, she said, but sneakers are products that they prioritize. Dillon also described the way the company is "expanding sneaker culture," saying customers want choices and wear sneakers for a variety of occasions.

"Things are really just starting to come together all at once," Dillon said. "Our brand partnerships are strong so we have access to the best of the best. Inventories are cleaner so we can make sure the best of the best is in front of our customers."