Footstar to Close 60 Footaction and Just For Feet Stores

Footstar Inc. (West Nyack, N.Y.), the discount shoe retailer whose nameplates include Footaction and Just For Feet, has announced it will accelerate its plan to close underperforming stores and to upgrade in-store displays in the surviving stores.

The plan includes closing up to 60 stores in the athletic segment — up to 55 Footaction stores and up to 5 Just For Feet superstores. These stores represent approximately $46 million in annualized revenues, which the company says it expects to make up with more profitable new-store development.

“The stores we are closing, while representing approximately 10 percent of the athletic segment's store base, generate only 5 percent of sales,” said chairman and ceo Mickey Robinson. “Eliminating these stores and writing down associated assets is expected to increase athletic segment profitability, improve operating cash flows and allow management to concentrate on the most profitable areas of the business. At Footaction, we will continue to focus our growth plans on predominately off-mall, urban street and strip locations, where our existing locations significantly outperform the rest of the chain. At Just For Feet, we plan on opening stores with our new smaller prototype design in markets where we can leverage our existing marketing and advertising presence.”

In addition to its athletic retail division of nearly 650 stores, the company operates leased footwear departments in more than 6000 U.S. stores through its Meldisco division. A huge majority of its sales comes from about 2100 Kmart stores. Meldisco offers shoes under private labels as well as licensed brands Everlast, Route 66, and Thom McAn.