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Foot Locker to close over 400 under-performing stores in mall overhaul

22 March 2023
3194
2 min.
2
Foot Locker to close over 400 under-performing stores in mall overhaul

Stores of the sport clothes

Foot Locker, the popular sports apparel and footwear retailer, recently announced its decision to shut down more than 400 under-performing stores located in shopping malls over the text three years. This is in line with the company's "reset" plan to optimize its operations and improve profitability.

Although Foot Locker reported a quarterly profit of $19 million, which exceeded expectations, it has forecasted a 3.5% to 5.5% decline in total sales for the current year. As part of its strategy to revitalize its business, Foot Locker plans to close 25% of its stores in A- and B-rated malls and 50% of its stores in C- and D-rated malls, based on their sales per square foot.

While the company did not specify which stores in Upstate New York will be closed, it has confirmed that around 125 under-performing Champs Sports stores will be shut down this year.

To cater to niche audiences, such as sneaker enthusiasts, athletes, quality-conscious shoppers, and bargain hunters, Foot Locker is planning to open over 300 "new concept" stores in free-standing locations. These stores will provide a more immersive and personalized shopping experience, with a wider range of products on offer. As part of its expansion plans, Foot Locker will increase its square footage by 10% to over 14.5 million square feet, thereby creating more experiential expressions of its brands.

Currently, 35% of Foot Locker's revenue comes from stores outside of malls. However, with its renewed focus on standalone stores, the company expects this figure to increase to 50% by 2026. By adopting a more customer-centric approach and providing a better shopping experience, Foot Locker is poised to remain a leading player in the sports retail industry.

Companies2 in the news

Champs Sports
1 place
Foot Locker
2 place
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