CONSUMER

Foot Locker closing 400 stores by 2026

Mar 20, 2023, 6:33 PM

Foot Locker is planning to shut 400 stores by 2026 as it strives to become more relevant to younger...

Foot Locker is planning to shut 400 stores by 2026 as it strives to become more relevant to younger shoppers and pictured, a pedestrian carries a Foot Locker Inc. bag at the Easton Town Center shopping mall in Columbus, OH, on Aug. 23, 2016. (Luke Sharrett/Bloomberg/Getty Images via CNN)

(Luke Sharrett/Bloomberg/Getty Images via CNN)

(CNN) — Foot Locker is planning to shut 400 stores by 2026 as it strives to become more relevant to younger shoppers by relaunching its retail brands, introducing “experiential” new store concepts and simplifying its operations by closing underperforming mall-based stores.

The stores slotted for closing across North America account for nearly 10% of Foot Locker’s total sales, said Anthony Aversa, Foot Locker senior vice president of store development.

Aversa disclosed the details to analysts during the company’s investor day on Monday.

Under its corporate umbrella, Foot Locker operates more than 3,000 Foot Locker, Kids Footlocker, Champs Sports, WSS and atmos stores globally.

Included in the store trimming are 125 underperforming Champs Sports stores, which will be closed this year.

The “reset,” as company executives describe it to analysts, comes amid softer sales. Foot Locker reported fourth quarter sales Monday that eased 0.3% versus a year ago. The retailer also forecast total sales to drop 3.5% to 5.5% in 2023.

Foot Locker noted that among its portfolio of brands, its non-Nike branded product sales grew mid-single digits, while the Nike mix was down — though “only slightly.” But Nike is Foot Locker’s largest brand partner and will remain so, executives said. The company is looking to revitalize its Nike partnership with a product concept celebrating Foot Locker’s 50-year anniversary in 2024.

“Nike will continue to lead our brand portfolio and be 55% to 60% of our mix,” said Chris Santaella, Foot Locker’s chief merchandising officer.

Courting younger and diverse shoppers

The new store concept and selling strategy — called the “Lace Up”— will focus on specific segments of sneaker shoppers.

They include the sneaker maven, or sneaker-obsessed shoppers who represent themselves through their shoes; the fashion-forward expressionist who want to look and feel cool and rely on their sneakers to deliver that feeling; the athlete searching for high performance sneakers; shoppers who prioritize quality and comfort; and, finally, the deal-hunters.

“These positionings will drive everything we do, including real estate site selection, product merchandising, omni marketing and, of course, great customer service,” said Bracken.

Foot Locker CEO Mary Dillon told analysts she thinks hybrid work is here to stay and it’s fueling the strength and longevity in casual dressing.

“We are not going back to less comfort in our lives. I can tell you that,” she said.

She said younger and more diverse customers are a strategic advantage for the company. “These are the fastest-growing consumer segments in the US and are rapidly expanding in their purchase power,” she said. “If you don’t win with young diverse consumers in this category, you don’t win in the long run.”

Aversa said Foot Locker plans to attract both older, loyal shoppers and new and younger customers in a few ways.

“We’ll be scaling new concepts with bigger footprints to offer more engaging experiences with a broader product assortment,” he said, adding that the retailer will have more of its stores outside of malls.

The reduction in real estate, he said, will be approximately a 10% reduction in store count through 2026 to 2,400 stores.

“But we will increase our square footage by 10% to over 14.5 million square feet as we open up larger, more experiential expressions of our brands with a wider product assortment. New formats will surpass 400 locations,” said Aversa.


The-CNN-Wire™ & © 2023 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.

KSL 5 TV Live

Consumer

A SkyWest Airlines jet approaches Salt Lake International Airport on Sept. 24, 2022. SkyWest announ...

Carter Williams, KSL.com

Flights between St. George and Los Angeles to resume after 4-year delay

St. George-based SkyWest Airlines announced this week that daily flights between St. George Regional Airport and Los Angeles International Airport will return this fall, through United Express, one of SkyWest's different airline service partners.

7 hours ago

FILE - A line of unsold 2018 Cooper Clubmen sit in a long row at a Mini dealership, March 30, 2018,...

Wyatte Grantham-Philips, AP Business Writer

Car dealerships are being disrupted by a multi-day outage after cyberattacks on software supplier

Car dealerships across North America have faced a major disruption this week.

1 day ago

Snelgrove Ice Cream, an iconic Salt Lake City brand, is making its comeback. (Snelgrove Family)...

Eliza Pace, KSL TV

Snelgrove Ice Cream, an iconic Salt Lake City brand, is making its comeback

In 1929 Snelgrove Ice Cream was founded by Charles Rich Snelgrove in Salt Lake City, Utah. Now Lindsay Snelgrove seeks to continue the legacy.

1 day ago

Salt Lake County Mayor Jenny Wilson, talking about the proposed changes that are happening to downt...

Carole Mikita and Michael Houck, KSL TV

‘This plan is ambitious’: Salt Lake County Mayor Wilson talks about the revitalization of Salt Lake City

Salt Lake County Mayor Jenny Wilson spoke to KSL TV about all the proposed changes that could hit downtown Salt Lake City.

2 days ago

A silhouetted man sitting in a chair on a phone call....

Matt Gephardt and Sloan Schrage, KSL TV

New federal data shows favorite methods of scammers targeting Utahns

Over 26,200 Utahns reported getting hit by fraud to the Federal Trade Commission last year. And one out of five of those Utahns lost money to imposters.

2 days ago

Trucks have been delivering a nonstop stream of packages from Temu to a home in the western suburbs...

Tara Molina, WBBM

An Illinois family keeps getting packages they never ordered from Temu

Trucks have been delivering a nonstop stream of packages from Temu to a home in the Illinois suburbs lately, but the family is not ordering anything.

2 days ago

Sponsored Articles

Photo courtesy of Artists of Ballet West...

Ballet West

The rising demand for ballet tickets: why they’re harder to get

Ballet West’s box office is experiencing demand they’ve never seen before, leaving many interested patrons unable to secure tickets they want.

Electrician repairing ceiling fan with lamps indoors...

Lighting Design

Stay cool this summer with ceiling fans

When used correctly, ceiling fans help circulate cool and warm air. They can also help you save on utilities.

Side view at diverse group of children sitting in row at school classroom and using laptops...

PC Laptops

5 internet safety tips for kids

Read these tips about internet safety for kids so that your children can use this tool for learning and discovery in positive ways.

Women hold card for scanning key card to access Photocopier Security system concept...

Les Olson

Why printer security should be top of mind for your business

Connected printers have vulnerable endpoints that are an easy target for cyber thieves. Protect your business with these tips.

Modern chandelier hanging from a white slanted ceiling with windows in the backgruond...

Lighting Design

Light up your home with these top lighting trends for 2024

Check out the latest lighting design trends for 2024 and tips on how you can incorporate them into your home.

Technician woman fixing hardware of desktop computer. Close up....

PC Laptops

Tips for hassle-free computer repairs

Experiencing a glitch in your computer can be frustrating, but with these tips you can have your computer repaired without the stress.

Foot Locker closing 400 stores by 2026