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Crain's Chicago Business, April 8, 2024

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CHICAGOBUSINESS.COM I APRIL 8, 2024

Javier Yanez is a co-founder and board member of the Pilsen Chamber of Commerce.

IN PILSEN, TIF EXPANSION HAS SOME FANS

BETH ROONEY

As the largely Hispanic community gentrifies, TIF funding is touted as a boost for small businesses and property owners | PAGE 13

Dillon’s Foot Locker turnaround has Wall Street waiting The company’s share price tanked in early March after it pushed back a margin target by two years By Ally Marotti

Mary Dillon | CRAIN’S FILE PHOTO

Foot Locker’s turnaround under former Ulta CEO Mary Dillon is taking longer than expected — and investors are not happy. The New York-based retailer saw its share price drop 34% in a 10-day span in March to $22.48, after Dillon's team told investors it would take two years longer than expected to reach their op-

erating margin goal of 8.5% to 9%. Though the stock price has since started to recover, experts say the road to Foot Locker’s transformation from a mallbased retailer into one that can operate in a variety of formats — including online — is likely to remain bumpy, if recent trends are any clue. The athletic apparel sector is competitive and has faced headwinds as consumers

pulled back spending amid an athletic wear glut. Plus, it’s hard to grow a company — which is what investors like to see — while reinventing a retail footprint. Dillon, who earned Wall Street’s respect during her eightyear tenure at Bolingbrook-based Ulta, is confident the path she laid out to turn Foot Locker around is the right one. Her “Lace Up Plan” involves refreshing ex-

isting stores with new technology, opening new store formats, rolling out an improved loyalty program and more. It’s a longterm plan that is starting to yield results. In an interview with Crain’s, she called the latest stock downturn a “bump in the road.” “At this stage of my life, I really See DILLON on Page 53

VOL. 47, NO. 14 l COPYRIGHT 2024 CRAIN COMMUNICATIONS INC. l ALL RIGHTS RESERVED

GREG HINZ Is Mayor Johnson making the right moves on Rahm Emanuel’s O’Hare deal? PAGE 2

A CHICAGOAN TO KNOW Melody Winston is a third-generation pilot and senior executive at Living Fresh Market in Forest Park. PAGE 6


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