Foot Locker To Close Over 100 Stores This Year

Just days after news that Dick’s Sporting Goods and Foot Locker agreed to a $2.4 billion merger proposal, a new report from TheStreet claims the struggling sneaker retailer is set to close over 100 stores by the end of the year.

Foot Locker CFO Mike Baughn shared the news via the company’s fourth quarter earnings release call. “The upper end of our comp range assumes we continue to drive comps at our more recent run rate from the last three quarters, led by the impact of our strategic initiatives and a relatively stable macro backdrop. The lower end does factor in some impacts related to marketplace and consumer uncertainty. Overall, our store count is expected to be down approximately 4% in 2025, with square footage down approximately 2%. We expect to add roughly 20 new stores in a year and to close approximately 110.”

Foot Locker now says it will be closing hundreds of stores by 2026. https://t.co/cgebgMuZfn— CTV Your Morning (@YourMorning) March 21, 2023

He added, “We recognize heightened levels of consumer and marketplace uncertainties as we move into the new fiscal year. As Mary noted, we saw [a] softer start to the year in February. We’ve seen customers respond well to peak moments such as NBA All Star Weekend, holidays and trending product in key launches like the Retro 12 last week. We’ve also seen our customers sensitive to external factors like the timing of tax refunds and we’ve experienced increased pressure in the lulls between key events. As such, we’ve incorporated this consumer dynamic into our 2025 outlook.”

Foot Locker Will Refresh 300 Stores in 2025

Retail Dive reported in March that as part of its overall strategy, Foot Locker will refresh 300 of its stores in 2025. This piggybacks on a 2024 announcement where the retailer revealed plans for a reinvented store concept. Before the deal announcement, Foot Locker implemented a turnaround plan. The retailer committed to opening 80 new “reimagined” locations and remodeling another 300 by the end of the year.

Called the “store of the future,” these reformatted stores feature a “bold storefront, distinct in-store environment, expanded footwear and accessory selections, an emphasis on sustainability, dynamic digital fixtures, and other technological advances. The concept also provides Foot Locker’s sneaker ambassadors, the iconic Stripers, with the ability to elevate their customer service through a sharpened high-tech toolkit.”

Per the press release, these in-store transformations included an:

• Immersive Shopping Journey: A sleek, modern layout that promotes exploration and simplifies navigation, guiding shoppers through a thoughtfully designed store experience.
• New and Exclusive Releases: Eye-catching displays near the entrance highlight the newest and most buzzworthy sneakers, enticing shoppers with reasons to come back regularly.
• Elevated Brand Storytelling: Engaging displays that bring partner brands to life, enriching product storytelling and helping customers quickly grasp key features and benefits.
• Communal Try-On Area: A central, community-focused area designed for trying on sneakers together, fostering connection, and celebrating the culture of sneakers.
• Sneaker Hub: A signature space focused on deepening customer engagement through services like lace customization, easy online ordering, and tailored FLX loyalty features.
• Advanced Technology: DUpgraded digital tools empower store associates with real-time inventory visibility and flexible fulfillment options, making checkout smoother and more convenient.

The Foot Locker and Dick’s Sporting Goods Merger should occur before the end of 2025.