Rumours circulating that Foot Locker is exercising potential to sell its companies, were denied on Friday, according to a Reuters report. Speculation was heightened by the company's hiring of an outside advisory firm in August and by Foot Locker's refusal to comment on any buyout interest. On Friday, CEO Matthew Serra quashed the rumours and instead mentioned the Group is planning a new concept, to be called "Footquarters." Footquarters will be focused on less expensive footwear and trainers, oriented at a family customer. Approximately 60% of merchandise will be athletic shoes. Dress and casual shoes, which carry higher profit margins than athletic footwear, will comprise the rest.

"We feel that our buying power in the athletic segment will give us enhanced margins vs. our competition, so I personally believe it could be a very large division," Serra stated to Reuters. The company plans to open up to 70 Footquarters stores next year, with the first group to open by mid 2007 and the second in the fall.