Foot Locker plans to shut down 400 stores

Foot Locker Retail, Inc., an American sportswear and footwear retailer, is reportedly planning to close own 400 of its locations by the year 2026. The move is said to be part of a scheme as it tries to appeal to the younger generation of shoppers by relaunching its brand.

As per CNN Business, Foot Locker will introduce new experiential store concepts so it will be more relevant to younger customers. It will also simplify its operations by shutting mall-based stores that are not doing well in the market.

The brand’s senior vice president of store development, Anthony Aversa, said the company is closing its Foot Locker outlets across North America and these account for almost 10% of the company’s total sales. He shared this information with business analysts during the company’s investor day on Monday, March 20.

Foot Locker operates more than 3,000 stores around the world, and this includes its other brands such as Champs Sports, Kids Footlocker, atmos, and WSS. In any case, out of the 400 locations that are set to close, 125 of them are said to be underperforming Champs Sports outlets stores, and these will be shut this year.

Company executives described its move of closing stores and introducing new concepts as a “reset.” As part of the plan, Foot Locker is also looking to refresh its partnership with Nike, which is its largest brand partner. It is also hoping for a collaborative product concept with the shoe brand to mark its 50th anniversary next year.

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

At any rate, Foot Locker has named its new store concept “Lace Up,” and this will focus on specific divisions of sneaker shoppers. For instance, there will be the sneaker maven or shoppers who are obsessed with sneakers, the athlete group who want high-performance shoes, fashion-conscious shoppers who aim to look and feel cool through the sneakers they wear, the deal hunters, and customers who prioritize quality and comfort.

“These are the fastest-growing consumer segments in the US and are rapidly expanding in their purchase power,” Foot Locker’s chief executive officer, Mary Dillon, said. “If you don’t win with young diverse consumers in this category, you don’t win in the long run.”

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