Foot Locker to Close 400 Mall Stores by 2026

Foot Locker (New York) plans to close 400 underperforming mall stores by 2026 and make off-mall stores and other concepts its major vehicles for growth. (The retailer currently has about 1300 such outlets in North America.)

The company also plans an increased emphasis on off-mall stores and a major overhaul of its Asian operations. The retailer discussed those plans at an Investor Day that followed the release of its fourth quarter earnings.

Foot Locker’s blueprint going forward, dubbed “Lace Up,” includes “transforming the company’s real estate footprint by opening new formats, shifting off-mall and closing underperforming stores,” it said.

In addition, the footwear and apparel retailer is retooling its strategy in Asia, taking such steps as closing its stores and e-commerce in Hong Kong and Macau and converting its current owned- and operated-stores and e-commerce in Singapore and Malaysia to a license model.

“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,” said Mary Dillon, president and CEO. “… Next year, we will celebrate the 50th anniversary of the iconic Foot Locker brand. We are incredibly excited to introduce our ‘Lace Up’ plan with a new set of strategic imperatives and financial objectives that are designed to set us up for success for the next 50 years.”

As for its fourth quarter, the company said while its comparable-store sales grew by 4.2 percent from a year earlier, driven by increased traffic and improved access to high-quality inventory, its total sales decreased by 0.3 percent, to $2.3 billion during the same time.

During the fourth quarter, the company also opened 21 new stores, remodeled or relocated 45 and closed 101. That left it with 2714 stores in 29 countries in North America, Europe, Asia, Australia and New Zealand. In addition, it has 159 franchised stores in the Middle East and Asia.