By Jorge Antonio Vázquez Buendía
Apr 30, 2024, 07:46 AM EDT
With more than 2,500 stores around the world, Foot Locker is the world leader in retail sales of footwear and sportswear, but that does not exempt it from readjustments to be more efficient and for that reason it announced last year that it will close more than 400 locations until 2026.
The move is part of the company’s “Lace Up” plan that executives revealed in a report to investors, which includes the opening of independent stores that are aimed at specialized consumers such as tennis collectors, children and higher-income buyers. .
In the United States, Foot Locker has about 1,300 stores in and the retailer’s plan is to close up to 420 by 2026, with the goal of shifting its focus toward higher-performing stores.
Foot Locker has noted that it plans to close 25% of its locations in A and B rated malls and 50% of its stores in C and D rated malls.
Tony Aversa, senior vice president of store development, noted that this number of locations represents 10% of Foot Locker’s total sales. But store closures are not Foot Locker’s only high-impact move and like other companies like Best Buy, it intends to open more than 300 “new concept” stores by 2026.
The plan for new Foot Locker stores includes those that are established outside of shopping centers. The company pointed out that it expects at least 50% of its income to come from outside the malls according to its new business plan, which would imply a jump from the current 35%.
Mary Dillon, CEO of the company, told Axios that Foot Locker is “revitalizing” its partnership with Nike and explained that both purchases have a “shared vision of the future market, aligning on growth plans and key strategic areas such as basketball, children and sneaker culture.”
“We have reestablished joint planning, data and knowledge sharing so we can better serve customers, and the fruits of our renewed commitment to each other will begin to appear in the holidays this year,” Dillon added.
The retailer isn’t the only company turning to realignments, Macy’s also recently announced it plans to close 150 stores in three years, and hundreds of Family Dollar stores are expected to do the same this year, as Walmart will do with several. establishments.
Keep reading:
· Best Buy closes dozens of stores in the United States by 2024: the reasons
· Walmart prepares the closures of more branches by 2024: complete list
· The partial list of Family Dollar stores that will close in 2024 is announced