Foot Locker to cut 120 jobs (From Yahoo)

On Friday January 8, 2010, 5:00 pm EST

NEW YORK (AP) -- Foot Locker Inc. said Friday it plans to cut about 120 jobs and to have closed 117 stores by the end of this month as it looks to become a more efficient and competitive business.

The footwear and accessories company also said it will consolidate its management staff in order to sharpen its attention to female shoppers' needs.

The company's stock gained 43 cents, or 3.6 percent, to close at $12.25 Friday.

The retailer has tried to offset slowing U.S. sales with tighter inventory management and increased cost control efforts.

The company said the job cuts would come in its home office and field management operations. It did not say in a news release what stores would be closed.

Calls to a company spokesman for comment were not immediately returned.

Foot Locker said it plans to open 37 stores, close 190 stores and remodel or relocate 160 stores in its fiscal year that ends this month. It said 117 stores -- mostly domestic Foot Locker and Lady Foot Locker locations -- were likely to be shuttered in the fourth quarter.

It currently has about 3,600 stores in 21 countries in North America, Europe and Australia.

The company said it will consolidate Lady Foot Locker's management with that of its Foot Locker U.S., Kids Foot Locker and Footaction businesses.

Richard Johnson, president and CEO of Foot Locker Europe, will become president and CEO of the combined division. Lewis Kimble will succeed Johnson as president and CEO of Foot Locker Europe. Kimble previously served as managing director of the Foot Locker Asia/Pacific unit.

Foot Locker President and CEO Ken Hicks, who left J.C. Penney Co. in July to take Foot Locker's top post, said the consolidation should help strengthen its brands' position in the retail sector and improve coordination of its women's product assortments.

Foot Locker expects the job cuts will result in a charge of $3 million, or 2 cents per share, in its fiscal fourth quarter.

It anticipates the job cuts and management consolidation will help save about $10 million in expenses in 2010.

Thanks
Paul Ng