Foot Locker, a chain of multi-brand footwear stores, has announced a significant optimization of its business. The company has decided to close about 400 outlets successively amid falling revenues.
The program of the retail chain reduction is calculated for four years. According to the general director of the retailer Mary Dillon, about 200 stores in the top malls, which show weak operational indicators, will be closed by 2026. In addition, 200 stores in class C and D malls will be closed.
The retailer also intends to close about 125 Champs retail chain stores. The company is calling 2023 the year of the business reboot. Foot Locker’s revenue is expected to fall between 3.5% and 5.5%.
“We had too much overlap between our formats, and some of our smaller concepts were complicating our operating model and reducing our profitability. In North America, we closed Lady Foot Locker, Footaction and most recently Eastbay.com,” the company said.
In the recent past, the retailer also abandoned the development of its Sidestep team merchandise project. However, Food Locker will expand its House of Play concept and develop a new “stores of the future” project focusing on inclusivity and digital technology. The first outlet of this format will open in New York in 2024.
