Foot Locker closes over 400 stores ahead of brand reset

Foot Locker plans to close more than 400 stores in the mall as it shifts its business strategy towards aligning it with niche markets.

The store closures are part of the company’s “race-up” plan to “reset” the business and grow total revenue to $9.5 billion by 2026, Foot Locker executives said in New York City this week. said at a recent investor event. As part of that plan, Foot Locker will diversify the brand’s portfolio and adopt a new standalone store format that offers a wide range of merchandise for sneaker enthusiasts.

Foot Locker CEO Mary Dillon said at the event:

Foot Locker’s decision to close more than 400 mall-based outlets by 2026 comes as the brand prepares to open more than 300 independent concept stores in three flavors. “Community” stores serving communities with a “passion for sneakers”, such as the brand’s Compton store in Los Angeles, California and Santoni store in Paris, France. A “House of Play” store, a larger format for kids’ foot lockers offering “advanced storytelling and product presentation.” and a ‘power’ store featuring a ‘full family assortment’ of ‘broader range’ products.

Older Wealthy Sneakerheads

According to Dillon, one power store serving the communities of Dallas and Fort Worth, Texas, traditionally serves a “young and diverse” consumer base to foot lockers “older people.” of high-income shoppers”.

“these are [power] In stores, we’re seeing a significant increase in suburban consumers with increasingly higher household incomes,” Anthony Aversa, COO of Foot Locker subsidiary WSS, said during the event. It shows that you can extend the reach of “

The sneaker merchant expects to get 50% of its revenue from independent stores in North America following the rollout of “new concept” stores, its executives said at the event. In-mall stores now account for 35% of brands’ revenue, Business Insider report.

With sneaker sales growing, Foot Locker made the decision to target a niche market through new experiential stores. Global sneaker sales in 2022 will reach $152.4 billion for him, up 2.7% from the previous year’s sales. reportThat number could grow to nearly $21.6 billion by 2031. report From Allied Market Researchers, a market analysis firm.