Franklin Bracken: Yes. So a little bit of history here. Champs was actually the first sort of sporting goods retailer, but on a mall like hard goods, tennis, stringing rackets, roller blades, et cetera. Through the shift in the ’90s and 2000, a sneaker culture grew and it became a bigger part of footings business, we gravitated some of that assortment more towards, I’d say, lifestyle in the apparel business. Now with the clear positioning of Foot Locker and the Sneaker Maven and the Fashion Forward, we want to kind of put Champs really, honestly, back into some of its heritage and its route going after that Active Athlete. That’s not to say that a Fashion Forward can’t shop at Champs. But when you think about the assortment being grounded in footwear apparel and accessories, both performance and then what we call the look of athleisure, that’s where the assortment is going to pivot.
So the store experience, our service model, how we update the digital sites and apps will be different than Foot Locker. I talked about product fit, ratings and reviews, more detail on the functionality and performance of product will be really important, showing apparel on model and photography, perhaps even having video at some point to demonstrate the look of sport is also going to be critical. So that’s the difference is it’s not really a new place for Champs. In some ways, it’s a bit of a back to the future in terms of where its DNA and heritage began.
Adrienne Yih-Tennant: Adrienne, Barclays. My question is on the exclusives. So I want to know are they quite literally exclusives to Foot Locker or are they exclusives across the Nike’s Tier 1 partners themselves, maybe as well as yourself? And then the number, the dollar number is kind of $6 billion from Nike today, right? And then it’s probably $6 billion it stays there. So what percentage of that dollar amount kind of becomes more exclusive? And within that exclusive, can you talk a little bit about adidas? Where are they in the partner? And how do they play into the next year with YEEZY? And then again, the exclusives.
Mary Dillon: Thank you, Adrienne. Is that 3 questions in one? That’s all right. I know how that goes. I’d like to direct that to Chris, who’s really our product expert to begin to answer your questions.
Chris Santaella: Sure. I’ll take that. So from a Nike perspective, it’s a little bit of a combination of all of the above. So there is — so our Tuned Air franchise is an exclusive model that we have in ownership in the complete marketplace. There are some levels within basketball that are elevated. So just very top-of-the-tier access, so a partner like kids, their social status or some of those. So that is part of it as well. But primarily all of our exclusive positions, we are talking about exclusive within the marketplace and a lot of the exclusives we share with direct. So it’s going to be tough to have that level of pure exclusivity. So it’s really against the rest of the wholesale market when we talk about exclusivity.
So we feel really good about it. Basketball, we’ll continue to lead. And when you get to adidas as an example, the baseball will launch Anthony Edwards with him in holiday of ’23. So we’ll continue to drive our exclusivity pieces across multiple categories. There’s also exclusivity across product concepts. So not everything is an exclusive model. So we may have a third-party collaboration. I mentioned L.O.L. Surprise!. I mentioned the Crocs Toast with Crocs. So there could be product concepts that are unique elevated executions that are exclusive to us. So we look at across all the different layers of exclusivity to really bring our consumer the best either from a model or from a storytelling perspective and ultimately — and we use a lot of global access also because there’s a lot of different layers that you can create globally than give — provide access in North America or in Asia Pacific through things that are created potentially in Europe.
So all different lanes that we’re looking across exclusivity. And some brands are higher than others. So I think we’ve got a benchmark of 25%. Some brands will be higher. Some brands will be lower, but we’re pretty comfortable with where that target is as we go forward.
Robert Drbul: It’s Bob Drbul from Guggenheim. Can you spend a little more time on the WSS business? It seems to be a very big driver of the top line with the new stores. So maybe like a little bit of color on the leadership team in place, sort of the brand offering and how you really intend to grow that piece of the business? And then just the second question is — I’ll stop it too, sorry, is on a — the second question is on the drop ship capability. Like what’s the time line sort of brand receptivity you have in that capability for the business?
Mary Dillon: Okay. So let me start. That is two at least were connected to each other questions It’s fine. We’re happy to talk about all. I’ll just start at a high level, turn to Frank to give us some more color on WSS. Listen, this is one of the things I was thrilled to learn about when I joined Foot Locker is that acquisition. I mean, I think I have long been an advocate for really understanding the power of the Hispanic consumer, especially in the U.S. and the growth in that segment. I don’t think enough companies really are focusing on really understanding that consumer segment. WSS does that really well. I visited some stores seeing it in action, and we have a real connection. I mean every experience is bilingual. We have a true connection with the community.
And I think that’s something to be really proud about. And obviously, demographics would suggest that there’s a lot of opportunity for growth there. So I think it’s great that we have the focus on that. Do you want to tell — say a little bit more about?
