Two Feet, One Head

Footstar Inc. (West Nyack, N.Y.) has created a new Footstar Athletic division, consolidating its Footaction and Just For Feet retail chains. Footaction president and ceo Shawn Neville will head the new division, which will be headquartered in Mahwah, N.J.

The company says the two chains will retain their market identities and continue to run separate merchandising and store operations organizations. But marketing, planning, finance and human resources functions will be combined.

“By combining the two chains into one Footstar Athletic Division, we will strengthen our buying and marketing power in the marketplace, while taking advantage of operating synergies between the two chains,” said Footstar chairman and ceo Mickey Robinson. “These actions are expected to enhance performance of our athletic operations.”

Footstar operates about 480 Footaction stores in 41states, Puerto Rico, and the U.S. Virgin Islands, and 87 Just For Feet superstores located predominantly in the southern half of the country.

Its Meldisco division, which accounts for about 60 percent of corporate sales, operates leased footwear departments in more than 6500 U.S. stores, though almost all of its sales come from about 2100 Kmart stores. Meldisco offers shoes under private labels as well as licensed brands Everlast, Route 66 and Thom McAn.