Footlocker is closing 400 stores

Foot Locker, a leading athletic footwear retailer, has announced plans to close 400 stores by 2026. This decision comes as part of the company's strategy to become more relevant to younger shoppers by relaunching its retail brands, introducing "experiential" new store concepts, and simplifying its operations by closing underperforming mall-based stores.

The closures will account for nearly 10% of Foot Locker's total sales, according to Anthony Aversa, Foot Locker senior vice president of store development. Established in 1974, Foot Locker currently operates over 3,000 stores worldwide, including Foot Locker, Kids Footlocker, Champs Sports, WSS, and atmos stores.

As part of the store trimming plan, 125 underperforming Champs Sports stores will be closed this year. The company aims to attract both older, loyal shoppers and new, younger customers through various strategies. Aversa mentioned that Foot Locker will be scaling new concepts with bigger footprints to offer more engaging experiences with a broader product assortment, and the retailer will have more of its stores outside of malls.

The reduction in real estate will result in approximately a 10% reduction in store count through 2026, bringing the total number of stores down to 2,400. This "reset" comes amid softer sales, with Foot Locker reporting a 0.3% decrease in fourth-quarter sales compared to a year ago.