Foot Locker Closing 400 Stores by 2026, Reveals ‘Lace Up’ Strategy
Is 2023 the year of reset for Foot Locker and sneakerheads?
Foot Locker intends to close 400 stores by 2026 and says it aims to attract younger consumers and plans to introduce experiential store concepts.
The specialty athletic retailer says this is the year of reset.
Foot Locker announced its new strategies at its recent Investor Day conference in New York, where it also revealed its fourth-quarter 2022 results. Foot Locker reported that comparable-store sales grew by 4.2%, driven by increased traffic and improved access to quality inventory.
“Our team delivered a great finish to the year with strong fourth quarter results that capitalized on resilient holiday demand and a compelling assortment and inventory position from our brand partners,” said Mary Dillon, President and Chief Executive Officer. “We are entering 2023 with a focus on resetting the business – simplifying our operations and investing in our core banners and capabilities to position the Company for growth in 2024 and beyond.”
Dillon was named Foot Locker’s newest CEO last year, replacing Dick Johnson, who retired from the retail giant. She began leading the company this past January.
As Foot Locker prepares to celebrate its 50th anniversary next year, Dillon announced its “Lace Up” plan, which includes strategies and financial goals that she says will position the company for success for the next fifty years.
Here’s what’s included in Foot Locker’s “Lace Up” plan:
Banking on sneaker culture & a Nike revive
Foot Locker plans to expand on sneaker culture by offering more sneaker occasions and options. Dillon has also been working on revitalizing the company’s relationship with Nike since the fall.
According to Dillon, Nike and Foot Locker are now on the same page, and the “fruits” of their renewed commitment to one another will be seen during the holidays.
This holiday season, Foot Locker will highlight LeBron and KD retro sneakers, as well as Air Force 1 offerings. In 2024, Nike and Foot Locker will collaborate on an exclusive product concept to commemorate the retailer’s anniversary.
Foot Locker closed Eastbay earlier this year, a beloved division of the company that sneaker fans adored. Eastbay’s closure resulted in an estimated 210 layoffs at its headquarters in Wausau, Wisconsin. At the time, Foot Locker stated that it decided to close Eastbay due to the optimization of its distribution network in the United States.
Reintroduction of the Foot Locker brand & real estate footprint strategy
The specialty retailer plans to relaunch the Foot Locker brand and close 400 stores by 2026. The retailer wants to attract younger customers and will introduce experiential store concepts.
According to Foot Locker, closing some underperforming mall locations will help to simplify operations. The store closures account for nearly 10% of total sales.
Despite the closure of 400 Foot Locker stores in North American malls, the retailer will open approximately 300 new locations with its updated concept.
A deepening of its relationship with Foot Locker customers & boosting online experience
Foot Locker’s goal is a 25% digital mix by 2026, and it says it plans to reset its loyalty program and elevate the customer relationship through “enhanced analytical capabilities,” such as a predictive search algorithm and product storytelling. AI will also power new product and content recommendations.
The post-purchase experience will also be enhanced with seamless channel returns and order and delivery communication.
