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Scholars Corner: Foot Locker is Closing 400 Stores · Earn Your Leisure

• 0:00
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 0:03
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 0:07
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 0:11
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 0:15
  Speaker 1: some of the heinous migrant criminals caught because of President
• 0:19
  Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
• 0:23
  Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 0:28
  Speaker 1: crossings are at the lowest levels ever recorded, and over
• 0:31
  Speaker 1: one hundred thousand illegal aliens have been arrested. If you
• 0:35
  Speaker 1: are here illegally, your next you will be fined nearly
• 0:39
  Speaker 1: one thousand dollars a day, imprisoned, and deported. You will
• 0:43
  Speaker 1: never return. But if you register using our CBP home
• 0:46
  Speaker 1: app and leave now, you could be allowed to return legally.
• 0:50
  Speaker 1: Do what's right. Leave now. Under President Trump, America's laws,
• 0:55
  Speaker 1: border and families will be protected.
• 0:57
  Speaker 2: Sponsored by the United States Department of Homeland Security, four
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  Speaker 2: hundred foot locker locations have been closing.
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  Speaker 3: By twenty twenty six. Inside the moles, so we gotta
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  Speaker 3: be very secipid.
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  Speaker 4: Yeah, foot locker, they they were done once. Nike stop. Right,
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  Speaker 4: Nike doesn't have the shoes and full locker anymore.
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  Speaker 5: They still have them. They were, they're pulling back, they're
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  Speaker 5: pulling theervatory.
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  Speaker 3: Yeah locker.
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  Speaker 5: Yeah, that's tough because I mean they're just a retail
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  Speaker 5: that just supplies provides other retail stores equipment. Right, So
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  Speaker 5: like they don't have a shoe, they don't have their
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  Speaker 5: own clothing.
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  Speaker 3: They just stock bran shirts in there. Those those are
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  Speaker 3: bad though.
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  Speaker 5: Those are like lapping tappy, lapping tappy, you know what
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  Speaker 5: I mean.
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  Speaker 3: It was a good pre internet model.
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  Speaker 5: The thing is that and again this is another pandemic issue, right,
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  Speaker 5: Nike was one of it. I mean, how many retail
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  Speaker 5: stores do they have, not many, but they make a
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  Speaker 5: killing digitally, right, so that the Nike app I told
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  Speaker 5: you every Saturday, any day that they put out release,
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  Speaker 5: it's almost guaranteed that the item is going to sell out.
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  Speaker 5: The merchandise get sold online. They don't really need a
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  Speaker 5: brick and mortar store to be a successful business. And
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  Speaker 5: so why pay another brand or another company to put
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  Speaker 5: their merchandise inside of it when they get to sell
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  Speaker 5: it online?
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  Speaker 3: Right?
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  Speaker 5: And you see Adida doing the same thing. They have
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  Speaker 5: their own flagship stores. And so if you take all
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  Speaker 5: these brands start saying, hey, we're just going to have
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  Speaker 5: our own flagship stores, and you're the store that you
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  Speaker 5: supply all of them at the same place, I mean,
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  Speaker 5: you almost kind of become irrelevant. Right Like we saw
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  Speaker 5: east Bay was one of the brands that was under them,
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  Speaker 5: and east Bay doesn't exist anymore, right, So they have
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  Speaker 5: a few other brands under them, Champs, and I'm not
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  Speaker 5: chaming to finish one. These are brands that are underneath them,
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  Speaker 5: and they're designed to sell different types of merchandise. It's
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  Speaker 5: different demographics, like for young teens and for you know,
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  Speaker 5: specifically for women. I know they had a store, but
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  Speaker 5: if everybody's moving online, and if you have competitions from
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  Speaker 5: stores like yeah, Lululemon as far as the apparel, I mean,
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  Speaker 5: it's gonna be a tough proposition.
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  Speaker 3: Another thing.
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  Speaker 5: And I think it's smart that they look, we're not
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  Speaker 5: going inside the malls. We we spoke about walls as
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  Speaker 5: as far as commercial real estate, like it's a it's
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  Speaker 5: it's a dead business. People are not going inside the
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  Speaker 5: malls at the same rate. I don't see it happening
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  Speaker 5: in the future. You shouldn't. Why have your store inside there.
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  Speaker 5: You're paying the lease and you're not making money, So
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  Speaker 5: what's the point.
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  Speaker 3: Yeah, you're dead. We gottat. We're gonna put them on
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  Speaker 3: the away.
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  Speaker 4: Second, foot Locker is native apparel that they sells like.
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  Speaker 4: It's the equivalent of shopping at Walmart. Nothing wrong with
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  Speaker 4: shopping at Walmart.
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  Speaker 3: Not nothing wrong with it's just the equivalent of it.
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  Speaker 6: We know some dudes us, Yeah, Champion used to be
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  Speaker 6: in Walmart.
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  Speaker 4: No, I never shot, but respects to anybody that does.
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  Speaker 3: To everybody, foot Locker is the equivalent of Walmart.
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  Speaker 4: So I'm saying that to say that's not something that's
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  Speaker 4: sustainable just using their own merchant nice. Yes, So you
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  Speaker 4: know it's it's not a good business model to rely
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  Speaker 4: heavily on other brands because in the case when Nike
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  Speaker 4: decides to pull thirty percent of their merchandise from your stores,
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  Speaker 4: your screw.
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  Speaker 3: Yeah that's gonna be that' you're gonna take a hit.
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  Speaker 4: Yeah, shout out to YouTube seven thousand people. Mission accomplished,
• 4:19
  Speaker 4: Mission accomplished, seven thousand. We gotta treat for you, guys.
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  Speaker 4: So let's get this coming through. Let's get this bad
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  Speaker 4: boy up to seventy five hundred.
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  Speaker 3: I mean we didn't say it, but we could.
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  Speaker 5: That's we mean we can put this under the easy effect, right, Kanye.
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  Speaker 5: If you think about what people are buying it at
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  Speaker 5: from Adida inside of these.
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  Speaker 4: Stores, nobody buys from the store. Nobody buys from stores anyway.
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  Speaker 3: People still line up outside and they sitting on a
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  Speaker 3: lot of it was a specialty stores though.
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  Speaker 4: Yeah, but those are like those sneakers, like the House
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  Speaker 4: of Hoops and like those stores people.
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  Speaker 6: Yeah, really quick, can we name the liabilities that foot
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  Speaker 6: locker may have? Real quick to give like a fundamental analysis,
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  Speaker 6: So like employee cost structures is locked in. They're probably
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  Speaker 6: paying what twenty five thousand to fifty thousand per month
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  Speaker 6: in rent?
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  Speaker 3: Yeah, clothing line is a liability.
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  Speaker 7: The employees a brick and mortar rent that you're paying
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  Speaker 7: inventory influx, the inventory influx, the seasonal fluctuation.
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  Speaker 4: Sure, you know, you go all earners.
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  Speaker 3: What's up?
• 5:28
  Speaker 5: You ever walk into a small business and everything just works,
• 5:31
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• 7:18
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 7:21
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 7:25
  Speaker 1: accused of murdering a Texas. Man of Venezuelan charged with
• 7:29
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 7:33
  Speaker 1: some of the heinous migrant criminals caught because of President
• 7:37
  Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
• 7:41
  Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 7:46
  Speaker 1: crossings are at the lowest levels ever recorded, and over
• 7:49
  Speaker 1: one hundred thousand illegal aliens have been arrested. If you
• 7:53
  Speaker 1: are here illegally, your next you will be fined nearly
• 7:57
  Speaker 1: one thousand dollars a day, imprisoned, and to port you
• 8:00
  Speaker 1: will never return. But if you register using our CBP
• 8:04
  Speaker 1: home app and leave now, you could be allowed to
• 8:07
  Speaker 1: return legally, do what's right. Leave now. Under President Trump,
• 8:12
  Speaker 1: America's laws, border and families will.
• 8:15
  Speaker 2: Be protected sponsored by the United States Department at Homeland
• 8:17
  Speaker 2: Security HAIZY during during the winter and then it cools
• 8:21
  Speaker 2: off for other months.
• 8:22
  Speaker 5: Or if you don't have like we just had a
• 8:24
  Speaker 5: winter where we didn't need certain inventorya like how many
• 8:27
  Speaker 5: pairs of boots were you wearing this winter?
• 8:28
  Speaker 3: How many coats were you win? I mean it was
• 8:30
  Speaker 3: a mild winter.
• 8:31
  Speaker 5: And so then again, now you have a massive inventory
• 8:34
  Speaker 5: that you didn't move.
• 8:35
  Speaker 6: Thirty two in New York is a my winter because
• 8:37
  Speaker 6: y'all kept saying that when I was there and I
• 8:39
  Speaker 6: was free, that we could live with thirty two as
• 8:41
  Speaker 6: long as it's like no, no snow, snowstorm.
• 8:44
  Speaker 4: And here's another thing in business. You either what I realized,
• 8:48
  Speaker 4: in business, this is a gym. You either want to
• 8:51
  Speaker 4: be low low end or high end high end. Yes,
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  Speaker 4: the middle end gets screwed so low in like this
• 8:58
  Speaker 4: is Target, This is Walmar, aren't you general? You make
• 9:01
  Speaker 4: a lot of money on the low end. And this
• 9:03
  Speaker 4: is why like people, I think even Kim Kardashi at
• 9:05
  Speaker 4: one point point of closing, like Target one of these
• 9:07
  Speaker 4: low end. These these people make a lot of money.
• 9:10
  Speaker 4: And then the high end like Rolex and like Chanelle
• 9:17
  Speaker 4: Bags and Louis Vauton, they're a kind of recession proof
• 9:21
  Speaker 4: and they still make money in any type of economic
• 9:24
  Speaker 4: environment because the rich get richer when the poor get poor.
• 9:27
  Speaker 4: It's the middle section that has a bad business model.
• 9:31
  Speaker 4: This is why all of these middle brands go out
• 9:34
  Speaker 4: of business, like models like a.
• 9:37
  Speaker 3: Foot locker like.
• 9:40
  Speaker 4: Applebee's is struggling, like it's these middle brands that that
• 9:44
  Speaker 4: are struggling.
• 9:47
  Speaker 3: Like people don't even go to cheesecake anymore. Remember out Steakhouse?
• 9:52
  Speaker 3: Remember Outback Steakhouse.
• 9:53
  Speaker 4: I haven't seen them exactly, but McDonald's is still Here's
• 9:57
  Speaker 4: a fact, like you know what I'm saying, And McDonald's
• 10:00
  Speaker 4: still here. And so when you when you're thinking of
• 10:04
  Speaker 4: making your business, yeah, low end or high end, think
• 10:09
  Speaker 4: about that, and then also think about having a product
• 10:13
  Speaker 4: that's actually a necessity like that you really need, because
• 10:17
  Speaker 4: that's another way to kind of survive hard times where
• 10:21
  Speaker 4: you need something so you really can't go without it.
• 10:26
  Speaker 6: Or hypermodels good like McDonald's stay sell or low end products,
• 10:29
  Speaker 6: but the high end asset in the business is really
• 10:32
  Speaker 6: the real estate that they.
• 10:33
  Speaker 5: Own right right, right right, And that's again the reason
• 10:38
  Speaker 5: why you wouldn't be inside of them all.
• 10:40
  Speaker 3: Absolutely, there you go. It's tough.
• 10:43
  Speaker 6: We're going through a cataclysmic change in real time, and
• 10:46
  Speaker 6: it's really an extension. I mean, I want to go
• 10:49
  Speaker 6: look at the chart one day and maybe we can
• 10:50
  Speaker 6: do next week. But if we take our quantitative ease
• 10:53
  Speaker 6: in from two thousand and eight and kudos to Obama through, now,
• 10:58
  Speaker 6: did we lose two decades from two thousand to twenty twenty,
• 11:05
  Speaker 6: Like that's scary to think about. Like technically, without quantitative easing,
• 11:08
  Speaker 6: we would have been like flat or like slightly above
• 11:11
  Speaker 6: break even. But then they want to say, well, black
• 11:15
  Speaker 6: people run the market in the house, Oh, y'all.
• 11:17
  Speaker 3: Run the market. Black people didn't put them loans through.
• 11:24
  Speaker 3: Let people mind me your fourteen houses? Wow, wild West,
• 11:27
  Speaker 3: there's well, Matt did mls math just mols numbers? What
• 11:39
  Speaker 3: you're doing?
• 11:41
  Speaker 5: This is just jokes, Mater, I love you, shout out
• 11:43
  Speaker 5: the MG man. A lot was learned on those sounds,
• 11:44
  Speaker 5: you know what. Yeah, but you're right, it's a unique time.
• 11:47
  Speaker 5: But I think the most important thing is that awareness
• 11:52
  Speaker 5: is at a premium, right, and that's why people are here,
• 11:55
  Speaker 5: and that's why they they tune in the market. Mondays,
• 11:58
  Speaker 5: because you can't say that you didn't know, You can't
• 12:01
  Speaker 5: say that you weren't made away. What you choose to
• 12:04
  Speaker 5: do with the information now or how you choose to
• 12:06
  Speaker 5: execute or implement it will be up to you. But
• 12:08
  Speaker 5: the fact that it's like because some people might say
• 12:10
  Speaker 5: in two thousand and eight bad they knew what was happening,
• 12:13
  Speaker 5: but they didn't understand it. Yeah, I think every week
• 12:15
  Speaker 5: we're coming here, every time something happens, we're given a
• 12:18
  Speaker 5: pretty good explanation of what's happening, and so that you know,
• 12:21
  Speaker 5: we can make educated decisions.
• 12:23
  Speaker 8: Now, my graduates from my school being forced back drop drop,
• 12:31
  Speaker 8: Mike drop backdrop drop.
• 12:44
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 12:48
  Speaker 1: in Massachusetts. An MS thirteen gang member from El Salvador
• 12:52
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 12:56
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 13:00
  Speaker 1: some of the heinous migrant criminals caught because of President
• 13:04
  Speaker 1: Donald J. Trump's leadership. I'm Christy Noman the United States
• 13:07
  Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 13:12
  Speaker 1: crossings are at the lowest levels ever recorded, and over
• 13:16
  Speaker 1: one hundred thousand illegal aliens have been arrested. If you
• 13:19
  Speaker 1: are here illegally, your next you will be fine nearly
• 13:23
  Speaker 1: one thousand dollars a day, imprisoned, and deported. You will
• 13:27
  Speaker 1: never return. But if you register using our CBP home
• 13:31
  Speaker 1: app and leave now, you could be allowed to return legally.
• 13:34
  Speaker 1: Do what's right. Leave now. Under President Trump, America's laws,
• 13:39
  Speaker 1: border and families will be protected.
• 13:42
  Speaker 3: Sponsored by the United States Department of Homeland Security,