Foot Locker and Nike tie together for new shoes

Nike Inc. (NYSE: NKE) and Foot Locker Inc. (NYSE: FL) are teaming up to launch a chain of stores called "House of Hoops by Foot Locker." The first location will open in Harlem in early 2008, and the company hopes to open up to 50 stores across the country over the next three years. The stores will offer only Nike products, which include the Converse and Jordan brands.

Basketball shoe sales have been slipping in recent years as many people are shifting away from them towards less clunky, more casual shoes. I don't know if this will help to revive the category. In fact, I doubt that it will. But it could spell disaster for Reebok and other athletic footwear companies, as the biggest specialty footwear retailer is teaming up with the biggest supplier.

One thing I don't think will help is the name. Isn't "House of Hoops" a little corny? It sounds a lot like the "House of Blues," another cynical attempt to commercialize urban culture. But hey, that's worked out pretty well, so who knows.

But this isn't even the most exciting news in the footwear sector today, as Payless ShoeSource Inc. (NYSE: PPS) agreed to acquire Stride Rite Corp. (NYSE: SRR).