Peter Scaturro: All right. Welcome back. Good morning, everyone. Happy to be here and really excited to share our 4 strategic imperatives being a best-in-class omni retailer. You certainly heard the team referenced the customer experience throughout the morning. And so for us, this imperative is all about creating pathways for our customer to engage and transact across channels and in any way they choose. And we’ve spent a lot of time as an organization listening to our customers to understand their pain points, their passion points and everything in between. So this imperative is one that we feel can and will truly differentiate us in the marketplace. Before we go into the details of the plan, let’s talk a little bit about opportunity.
First, we know that we’re trailing the broader market when it comes to digital penetration. We finished 2022 in the high teens right around 17%, while much of our competitive set are in the 20s and the broader marketplace is actually double that. So there’s a sizable gap for us to fill. We believe that as more digitally native customers continue to grow in purchasing power and as we broaden the customers we’re serving, we have a clear opportunity to increase our digital mix and most importantly, have that growth be incremental to our business. But we also know that our channels are highly complementary to each other. I’ll share a few stats. 80% of digital sales happened within 10 miles of a store and customers within that 10-mile radius spend almost 2x more per person than the rest of the country.
And those digital sales per person are almost 20% higher in the areas surrounding our new concept stores. So the Power, Community and House of Play stores that Tony referenced earlier do an even better job of driving engagement and creating a digital halo in the business. Third, over 95% of customers incorporate the digital channel in their shopping journey. Whether that means drawing inspiration from a social post, using our launch reservation app before picking up highly coveted product or engaging with our immersive brand and product stories through our articles, images and YouTube videos. The digital channel is a key component of our customers’ journey. And finally, almost half of all digital sales are aided by a store with services like shipping from our back rooms or using BOPIS to conveniently pick up product.
So our 2 channels are already working together to drive growth. But the ultimate opportunity lies in our ability to drive more customers to shop across both channels. I’ll share a couple more stats. Omni-channel customers spend more than 3x more than single channel shoppers. They’re more engaged, they’re more committed and they’re spending more of their wallet share with Foot Locker, Inc. But they make up a relatively small portion of our customer base today, only about 7%. Many of our peers are 2 to 3x higher than that. So unlocking the omni customer creates a strong tailwind to our business. So let’s talk about the priorities we need to execute to get us there. You guys have probably been sensing a theme throughout the morning that our company and our Lace Up Plan are all about the customer.
And so we wanted to start the omni conversation with the customer journey in mind. And we tried to keep it simple. We’re going to focus our energy on creating powerful and seamless touch points during the pre-purchase, purchase and post-purchase experience. We’re going to remove friction, add features and ultimately provide our customer with a more integrated and enjoyable shopping experience, however, they choose to engage with us. So let’s dive into some of the details. First, on pre-purchase. We’ll start with another stat where we believe there’s opportunity, and that’s around discovery. We’re currently trailing our peer set by 1.2 to 1.4x when it comes to the amount of time spent on our digital properties. And so as we begin to broaden our customer base and provide them with more choice, we believe a more dynamic and personalized experience will drive discovery time up and that time will ultimately turn into revenue.
Here are some of the top priorities. First, improve search and navigation to drive relevancy with a more predictive and engaging search algorithm, improve navigation to highlight new brands, additional colorways and create a more seamless and intuitive shopping experience. Second, we’re going to leverage the great content that our industry creates to tell better stories, provide more detailed and engaging product visuals, more in-depth rating and reviews to help our customers find the perfect pair. And finally, we’re going to leverage product recommendations driven by past browsing history, trending items and our global history of purchase behavior to drive more discovery around new products and brands. We’ve already begun taking steps in this direction with small iterative changes to the site and app and feel really confident in the direction that we’re heading.
From a purchase perspective, we believe we can create a strong tailwind to improve conversion with a few key investments. The first, near real-time inventory. By 2024, we expect to have our inventory synced across stores, DCs and our digital channel to give the customer and our stripers a near real-time picture of not only what’s available but where it sits in the network and how we can get it to them. Second, this year, we will scale new handhelds and upgraded networks across our entire fleet to provide our strikers with the ability to access that inventory picture, access product information and provide customers with a more seamless checkout experience for purchases in store, and if the product is not in store through one of our digital properties.
And third, we’re going to relaunch the Foot Locker app to drive energy, commerce and connectivity across our customer base. In 2022, over 80% of our traffic came through mobile. So our customer is telling us how and where they want to engage. So it’s on us to make sure that experience is immersive, drives loyalty and ultimately connects our customer to the category and the products that they love. Finally, on post-purchase, we’re going to leverage the combination of our digital properties and our physical footprint to create a more frictionless fulfillment experience. We’re going to focus our priorities on flexible fulfillment options by accelerating our global rollout of BOPIS this year and introducing expanded and expedited shipping options across the globe.
We’re going to create a more seamless return process between channels, and we’re going to create clear order transparency and communications, so you know exactly when and where your product will get to you. And the key stat here that we think tells a pretty significant story is that our store NPS is about 1.5x higher than our digital NPS. So we believe that by creating focus and prioritization along the customer journey, we can create parity in how our customers experience our brand in stores or online and drive significant growth for the organization. And so what does that growth look like? Our aspiration is to achieve a 25% digital mix by 2026, close to $2.5 billion in digital sales. And I know we’ve been talking about omni throughout this section and a lot throughout the morning.
But we feel the best measure of success will be our ability to better balance the mix between channels and drive our digital penetration up higher than it has been historically. And this is going to be a journey. It’s not going to happen in 1 month or 1 quarter. It’s going to require a multiyear strategic road map across our technology and supply chain infrastructure to get us there. But we’re confident that we can get there. And a big piece of that confidence comes from our next presenter, our Chief Operations Officer, Elliott Rodgers, who will outline some of those key enablers.
