Foot Locker To Close 400 Mall Stores By 2026
Foot Locker plans to close roughly 400 underperforming stores nationwide, as announced during an Investor Day on Monday in New York City. The closures come as part of the retail chain’s new business plan, “Lace Up.”
The company is aiming to target a more broad set of consumers, from younger folks to sneakerheads and those seeking quality and comfort. The goal is to open 300 concept stores by 2026, with revenue anticipated to reach $1 billion to $9.5 billion. The new initiative comes with 150,000-square-foot “community stores” for dedicated sneaker lovers, along with “play” stores for children coming in at 7,500 square feet, and “power stores” to provide an “elevated experience” for shoppers.
Foot Locker executives reported that shopping malls make up 10% of its total sales. It can be noted, however, that the brand saw an increase of sales by 8% since 2019 in A- and B-rated mall locations. As a result, Foot Locker will only be closing 25% of stores in higher-rated malls. Meanwhile, while 50% of stores in C- and D-rated malls will seek closures.
Nike will remain the company’s largest partnership, now with a revitalized approach. The brand plans to shift the focus toward sneaker culture. Chief Executive Mary Dillon states that she has spent time “aligning on growth plans” with Nike. It is expected that Nike will make up 50% to 60% of the brand’s revenue by 2026.
The brand plans to use its 50th anniversary in 2024 and the upcoming holiday season as a selling point for its partnership. This includes the new Kevin Durant “All-Star” sneaker from 2011, which will be making a return.
The closures come amidst a time when many retailers are struggling as a result of inflation and digital markets. However, Nike reported $3.58 per share, according to Daily Mail, with $8.76 billion in revenue.
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