Hicks' Jump from J.C. Penney Boosts Foot Locker Prospects
Ken Hicks, who had been J.C. Penney's president and chief merchandising officer, should help Foot Locker strengthen product presentation and take a position in the market that more effectively distinguishes it from the competition as he takes on the job there of president and CEO.
Hicks has been deeply involved in J.C. Penney's recent initiatives such as the launch of the American Living brand, the continued incorporation of Sephora shops into JCPenney stores and the expansion of the company's private label program. J.C. Penney's chairman and CEO Mike Ullman will assume his responsibilities as the company looks for a replacement. Hicks was a high profile executive at the company and widely respected for his efforts.
In a research note, Standard & Poors analyst Jason Asaeda noted:
Under Mr. Ullman's vision and Mr. Hicks' execution, we think J.C. Penney has successfully shed its mass merchandiser image and has become a shopping destination for affordable yet compelling fashion apparel and home furnishings. We view Mr. Hicks' departure as a loss but do not anticipate significant negative impact on the company given strength of its remaining management team.Morningstar analyst Brady Lemos noted that Hicks "was instrumental in bringing differentiation to the department store's product mix. Prior to joining J.C. Penney, Hicks was president of Payless ShoeSource. We think Hicks is qualified for his new role, and we expect his retail experience to benefit Foot Locker as the company attempts to differentiate itself from a number of competitors."
Hicks replaces Matthew Serra, who will remain chairman of the board until his planned retirement on Jan. 30, 2010 at the end of the athletic wear specialist's current fiscal year. Foot Locker operates 3,600 stores in North America, Europe, and Australia under the names Foot Locker, Footaction, Lady Foot Locker, Kids Foot Locker and Champs Sports. Additionally, it operates a direct-to-customer business, under the Footlocker.com, Eastbay and CCS names, offering athletic footwear, apparel and equipment via the Internet and catalog.