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Company: Foot Locker (FL)
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  Seasonality Jeopardizes Sales

Because many of FL's products are used in warm weather months, its sales tend to be highly seasonal. Foot Locker typically generates disproportionately higher sales during the fourth quarter holiday season. Thus, a stronger or weaker than normal holiday season can considerably help or hurt Foot Locker.

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  Highly competitive environment

Foot Locker is in a market with high competition. Nike is turning more and more to open their own retail stores, cutting the need for a middle man.

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  Macroeconomic Downturns Hurt Sales

FL's sales are linked to the health of the economy as a whole- Foot Locker's sales have slumped because of the 2007 Credit Crunch. The credit crunch has been significantly hurting the retail industry by cutting down on consumer spending- in the third and fourth quarter of 2007 fell 5% and 7.8%, respectively. Furthermore, its Q3 2008 sales dropped by 3.5%, following a 1.7% decrease in same store sales as consumers felt the pinch of the economic downturn.

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