System-Self-Checkout Station For Foot Locker

pages Pages: 4word Words: 890

Question :

Major Player of the Shoe Stores in the US industry, Footlocker Retail Inc is an athletic shoe and apparel retailer that operates more than 3,000 stores worldwide (IBIS-Major Companies). Despite being a leading player in the industry, there is a sharp decline in the growth of the brick and mortar stores of the company. Suggest and explain a new strategy for FootLocker Retail Inc. to help the company to face the competitors and make the company economically feasible

Show More

Answer :

Transaction Processing System-Self-Checkout Station for Foot Locker


         Major Player of the Shoe Stores in the US industry, Footlocker Retail Inc is an athletic shoe and apparel retailer that operates more than 3,000 stores worldwide (IBIS-Major Companies). The industry relies heavily on consumer spending to increase demand for products. As the economy strengthened in the previous years, per capita disposable income increased and revenue grew at an annualized rate of 1.2% to $37.4 billion dollars over the five years to 2018 (IBIS-Industry at a Glance). However, growth is starting to decline for contemporary brick and mortar stores, even in which many have closed their doors, as the shift to online shopping is disrupting the retail industry. What can Foot Locker do to prepare for this ongoing trend and remain competitive in the fast-moving world of technology? The Foot Locker new technology will be discussed in this report and also the discussion will be based on the new technology that has helped the organization. In this report, the discussion will also be made that how technology can help the company to face the competitors and make the company economically feasible. There is an important implication that has been required for the company to adopt will be discussed in the report.  This report has shown the key understanding on the information technologies, economic environment, and implementation of adopted system in Foot locker Company. 

Information Technology 

         The information system that employed for Foot Locker would be a transaction processing system, such as an innovative self-checkout station in their stores. Their stores can be changed to showrooms, where customers can still see the product but order through the computers employed in-store for online orders. Customers would select their desired shoe and size (the input), the system updates the inventory and generates the shopping cart (the processing), then the system generates a bill and the customer pays (the output). The system is very effective as all the operation in the transaction has been operated before the database changes are made permanent. It provides the assurance that in the failure of operation within the transaction does not lead to inconsistencies in the database. The technology has helped the company in building a different image among its customers. It has made the store interactive and has made the shopping of shoes at a different level (Kumar & Pansari, 2016). It is required in this technological environment that they must develop from their old tradition shoe store setting to the new technological setting. It also provides the details of the products and takes useful customer reviews that have been beneficial for both the customers and the company. The technology has helped the customers to choose their products from their fingertips. This will strengthen their satisfaction level and also assisted them to find more valuable products in easy approach. The designing of this method has made the company to connect with the customers more effectively by offering an elevated product assortment (Seenprachawong, 2016). The creation of technology has helped the Footlocker to empower their customers by making them learn about their offers, increasing sales. Foot Locker has been able to create brand loyalty among the customers. The technology also takes data about the most viewed items and the requested information (Bruesewitz, Koganti, & O'connell, 2017). It has helped the company to manage their inventories and creates data on their products. The self-checkout station has been able to grab the attention of the customers and has influenced the purchase. In a survey, it has been found that 76% of customers have been using this technology as a medium of shopping and been happy as the old traditional methods of shopping (Celikyilmaz, & Chanda, 2017).  This will not only strengthen the overall business outcomes of the company but also ease the complexities of the clients in buying the products from the company. 

The Competitive Environment

         The competitive environment for Footlocker is centered on department stores and internet-based retailers such as StockX and Amazon. E-commerce offers the option to buy shoes more conveniently and has grown and attracted a significant chunk of the market share as the online shopping continues to evolve and correspond with smart-phones (Shreemal, Bhatt & Tiwary, 2018). The online competitive environment has granted buyers more power as competitive pricing increases. It is analyzed that if Footlocker wants to compete in the market then it needs to use develop its core competency in product differentiation and cost leadership style so that it could strengthen the real outcome of its business. It will be done by using the advance technologies and system process which will attract more clients in market. The customers these days attract more towards the online market rather than the retail market due to the large choice and easy availability of products. The online companies also provide the products at much-discounted rates than the retail stores. The challenge that has been faced by the Foot Locker is that major selling of the company is through physical means of their stores. The customer these days have started moving towards the online market such as StockX and Amazon (Iyengar, Tay-Teo, & Hill, 2016). These competitors are challenging for the company and to deal with the customers. Foot Locker to be effective in the market has to adapt these changes in the market trends and has to make to various policies to attract customers. The use of the internet and mobile phones have given them enough space for the online market to grow. The online market has cut down the role of middleman that helps the e-commerce companies to cut down their costs. Therefore, the pricing of online companies is less than in retail stores. However, still there is a huge scope of Foot Locker to grow as there is almost in every mall of US there is a store of Foot Locker and the company is growing in a huge way. However, the competition has given some obstacles to the growth of the company. The competition from these companies is a big challenge for the Foot Locker, to deal with it is required that they use their innovative technology (Austin & Roberts, 2018)

The Economics 

        Footlocker to compete in the competitive market required to be economically feasible. The company has taken various strategies and plans to be economically feasible.  The plan to implement self-checkout stations and continue to innovate an online presence that creates a unique and inter-connected experience with the user is certainly economically feasible. Many companies are following technology’s benefits in marketing and advertising, and its ability to trade attention on a huge scale in a cost-efficient manner. The labor costs will be reduced substantially as fewer workers will be needed in-store as the control is shifting towards the customer. Footlocker will be able to price-match more shoes across the internet and offer other incentives due to savings. The project is about meeting the needs of the fast-growing internet world and is dependent on survival. It will help the company to make expenses on promotions. However, Footlocker will set up automation in the process by installing the new technologies and system process in its value chain activities. This technologies will directly impact the inbound and outbound activities of the company. The company will able to generate more profits and will be in a better position to compete with its competitors in the market (Healey, Madanipour, & Magalhaes, 2017). The economic feasibility will help the organization to take innovative steps towards the development of the organization. The productivity level of the company will increase and overall development of the organization will take place (Peckham, 2016). The company has its stores basically in elite areas and Malls of the US and the stores are comparatively high and therefore it is required that the companies use the other measures like use of their technology that can help in cut down their cost. It is less economical and more beneficial than other means. The company should move towards these steps that give more profit in fewer investments. The economic feasibility will create the organization strong and increase the share in the market. 


The likelihood that my plan will be successfully implemented is highly probable, if not already in the plans for Sneaker Stores in the US. The reason for success is that attention being traded digitally greater than at any time before. Foot Locker is in a good position to plan strategically for a technology breakthrough as they maintain a significant percentage of market shares. As the digital market is growing and the new companies have been taking advantage and making their stake in the market. Foot Locker who is already a brand in retail stores and has a huge customer base can easily target the customers’ digitally and can compete in the market. The company has been emerging as the global leader in the market and the digitalization will help the company to grow (Namada, 2018)

The company can implement some innovative way of attracting the customers by improving their technology and can give better offers to the consumers to purchase their product at a low cost. This will lower down the cost of the production and will help company to create core competency in cost leadership in selling products in market. The company is required to improve the service that has been provided to customers so that the customers should prefer retail shopping rather than online shopping. The company can provide the loyalty points to the loyal customers that will help the company to retain them and prevent them to move towards the other retailer or online stores. The company more and more advertise their technology and attract customers to buy their products and can choose their products from self-checkout stations. The customers will become more loyal and attracted to the company (Bortolotti, Boscari, & Danese, 2015)


It can say that the Foot Locker has the biggest retail chain of the US and has the huge market base but with the emerging technology, the company has used the innovative self-checkout station in a very effective way. The system has helped the company to attract the customers due to the uniqueness of the system. The company has been a huge market but somewhat had faced various challenges from the competitors especially online retailers. The company has been mainly into the retail business and therefore the company has been challenging from e-commerce businesses. The company has been economically benefitted from the company's policies and innovate information technologies. However, the company had been found not to be economically feasible in some areas. Therefore there are various implementation is required to be made so that the company can face the threats and challenges that have come. There are also various plans had been discussed from that company can retain their loyal customers and make new customers.