Foot Locker has announced plans to close more than 400 stores from now through 2026, as the company seeks to “simplify” its business operations and focus on areas fit for growth.
The closures come as Foot Locker hopes to “reset” amid a downward trend for sales. Fourth quarter sales for Q4 2022 fell by 0.3 percent, while the company forecasts a total decrease of 3.5 to 5.5 percent for 2023. Half of the closures will target locations in lower-rated malls, with the other half coming from underperforming stores in higher-rated malls. Of the 400, 125 will include underperforming Champs Sports locations that’ll close this year. In total, the stores subject to close account for just 10 percent of Foot Locker’s total sales.
Foot Locker announced the closures during its investors day presentation Monday, when it also outlined a shift in its relationship with Nike. Going forward, the two partners will focus on basketball and kids segments. The latter will actually lead to more retail locations with plans to open 300 new House of Play concept stores, which are larger versions of Kids Foot Locker.
Plans for expansion also include new locations for WSS, the sneaker chain obtained by Foot Locker in 2021. Although Foot Locker’s net locations will still be less, it’ll operate with 10 percent more square footage. Download the DROPS by SoleSavy app to keep up on more developments in the industry.
