How a loyalty revamp drove +18% sign-ups and 2.4% same-store sales growth

Foot Locker’s FLX Rewards program underwent a massive strategic transformation in 2024, moving from a complex, tiered system to a streamlined, points-based currency model. Launched in the US in May 2024 and expanded to Europe in Q2 2025, the revamped program is the cornerstone of the company’s “Lace Up” growth plan.

The results indicate a successful pivot: the program drove nearly 10,000 sign-ups in its first week in Europe (+18% lift) and achieved a 2x ROI against internal targets. In North America, the loyalty focus contributed to a 1.4% increase in comparable sales and a 3.6% boost in digital sales. With a goal of reaching 50% loyalty penetration by 2026, Foot Locker is demonstrating how a legacy retailer can leverage a revamped mobile app and simplified in-store mechanics to turn casual browsers into high-value members.

🏢 Company & Market Context

Foot Locker is a global leader in sneaker and youth culture, operating over 2,500 stores across 26 countries. However, the brand faced significant headwinds in 2023-2024 due to shifting consumer spending and increased competition from direct-to-consumer (DTC) brands.

Market Context: The “sneakerhead” market is highly transactional and driven by scarcity. Traditional loyalty programs often struggle to maintain engagement between major shoe releases.

Strategic Pivot: CEO Mary Dillon introduced the “Lace Up” strategy to modernize the brand. A key pillar was fixing the loyalty friction. The previous FLX program was seen as too complex, with rewards that felt unattainable for the average shopper. The 2024 revamp aimed to make rewards “instant” and “spendable.”

🎯 Program Design BreakdownThe “Points-as-Currency” Model:

The new FLX Rewards allows members to earn points on every purchase and redeem them directly for discounts (e.g., 100 points = $1 off), removing the “barrier to entry” for casual shoppers.

Key Features:

• Simplified Sign-Up: Reduced the friction for in-store enrollment, allowing baristas and associates to sign up customers in seconds.
• Exclusive Access: Members still get “first dibs” on high-heat sneaker releases, but the process is now more transparent and integrated into the app.
• Free Shipping: A core “instant value” perk that drives digital conversion.
• Tiered Engagement: While the currency is simple, the program uses engagement data to offer personalized “Sneakerhead” perks to top-tier spenders.

Incentive Logic:

By making points spendable like cash, Foot Locker increased the perceived value of every transaction. This “instant gratification” mechanic is designed to increase visit frequency and basket size among non-hardcore collectors.

⚙️ Technology & OperationsThe Revamped App:

The new Foot Locker mobile app is the “remote control” for the loyalty experience. It features a unified dashboard for point tracking, personalized product feeds, and a “Release Calendar” integrated with loyalty status.

Customer Data Platform (CDP):

Foot Locker implemented a new CDP to unify customer data across web, app, and 2,500+ physical stores. This allows for real-time personalization, such as sending a push notification for a specific shoe size when a member enters a store.

Operational Modernization:

The company refreshed 52 stores in Q2 2025 to better integrate digital touchpoints. Store associates are now equipped with tools to recognize FLX members instantly, bridging the gap between digital data and physical service.

📊 Results & Metrics

Growth & Adoption:

• +18% lift in loyalty sign-ups following the European relaunch.
• Nearly 10,000 new members in the first week of the new program.
• 50% loyalty penetration goal set for 2026 (currently scaling up from ~25%).

Financial Impact:

• 2x ROI on the loyalty marketing spend in Europe.
• 2.4% same-store sales growth at Foot Locker (outperforming total sales trends).
• 3.6% digital comparable sales growth, driven by app-exclusive loyalty perks.
• 1.4% North American comparable sales increase in Q2 2025.

Engagement:

• Revamped app is driving higher conversion rates among browsers compared to the legacy version.

💡 Key Strategic Lessons

1. Simplicity Wins: Moving from complex tiers to a simple “points-as-currency” model lowered the barrier for entry and increased immediate engagement.
2. Omnichannel Integration is Critical: The loyalty program only works if the app and the physical store are perfectly synced. Foot Locker’s store refreshes were essential to the digital revamp.
3. Instant Value Drives Sign-Ups: Perks like free shipping and immediate point redemption are more effective at driving mass enrollment than long-term “aspirational” rewards.
4. Data-Driven Personalization: Using a CDP to deliver “next-best-action” offers (like size-specific notifications) turns a generic program into a personalized shopping assistant.

🚀 What Your Team Can Apply

• For Multi-Brand Retailers: If your program feels “too complex,” simplify it to a currency model. Make it easy for customers to see the immediate dollar value of their loyalty.
• For Operations Teams: Don't just update the software; update the physical experience. Ensure store staff have the tools to sign up and recognize members without slowing down the checkout.
• For Product Managers: Focus on “conversion from browser to buyer.” Use the loyalty app as a tool to provide utility (like release calendars) that keeps users coming back even when they aren't ready to buy.
• For CMOs: Align your loyalty metrics with same-store sales and digital growth. Loyalty is not a “side project”—it is the primary driver of comparable sales.

📚 Sources & Citations

1. Foot Locker Investor Relations: Q2 2025 Financial Results
2. CX Dive: Foot Locker’s loyalty revamp shows early signs of success
3. Relain Agency Case Study: Foot Locker: +18% Loyalty Sign-Ups
4. Queue-it Blog: 15 Unique & Successful Loyalty Program Examples for 2026
5. Foot Locker PR: Fourth Quarter 2024 Financial Results