Home » Foot Locker is latest chain to close stores nationwide with more than 400 shops to close by 2026

Foot Locker is latest chain to close stores nationwide with more than 400 shops to close by 2026

Foot Locker has become the latest chain to close its stores across the nation with the company set to shut more than 400 of its under-performing shops by 2026.

The 420 stores that are set to close across the United States account for nearly 10 per cent of Foot Locker’s total sales.

Foot Locker said the closures will allow the company to introduce new store concepts and boost the company’s annual revenue by £1billion. 

It comes as America is bracing itself for a mass exodus of retail stores across the nation this year, with more than 800 stores belonging to Walmart, Gap, Bed Bath & Beyond set to close.

The companies have been forced into desperate cost cutting measures amid rampant inflation and declining bottom lines.

Foot Locker has become the latest chain to close its stores across the nation with the company set to shut more than 400 of its under-performing shops by 2026 (file image) 

CEO Mary Dillon (pictured in 2019) said that Foot Locker is 'revitalizing' its partnership with Nike as the companies have a 'shared vision of the future marketplace, aligning on growth plans and key strategic areas like basketball, kids and sneaker culture'

CEO Mary Dillon (pictured in 2019) said that Foot Locker is ‘revitalizing’ its partnership with Nike as the companies have a ‘shared vision of the future marketplace, aligning on growth plans and key strategic areas like basketball, kids and sneaker culture’

For Foot Locker, it said the more than 400 store closures will enable the company to focus on better-performing stores across North America as part of its ‘Lace Up’ business plan.

The plan, released to executives at an Investor day in New York City on Monday, will see Foot Locker open new free-standing shops that will target younger customers and people who are obsessed with sneakers.

The company aims to open hundreds of the new concept stores – from around 120 to more than 400 stores by 2026, Tony Aversa, senior vice president of store development at Foot Locker, said. 

CEO Mary Dillon told Axios that Foot Locker is ‘revitalizing’ its partnership with Nike as the companies have a ‘shared vision of the future marketplace, aligning on growth plans and key strategic areas like basketball, kids and sneaker culture’.

Foot Locker has about 1,300 stores in malls in North America and the company expects to close 25 percent of its stores in A- and B-rated malls and 50 percent of its stores in C- and D-rated malls, reports Business Insider. 

The company’s goal is to boost its annual revenue by $1 billion to $9.5 billion by 2026. 

It comes as Foot Locker on Monday reported a fiscal fourth-quarter profit of $19 million.

On a per-share basis, the New York-based company said it had profit of 20 cents. Earnings, adjusted for asset impairment costs and non-recurring costs, were 97 cents per share.

The results topped Wall Street expectations. The average estimate of nine analysts surveyed by Zacks Investment Research was for earnings of 52 cents per share. 

For Foot Locker, it said the more than 400 store closures will enable the company to focus on better-performing stores across North America as part of its 'Lace Up' business plan (file image of Foot Locker warehouse)

For Foot Locker, it said the more than 400 store closures will enable the company to focus on better-performing stores across North America as part of its ‘Lace Up’ business plan (file image of Foot Locker warehouse)

Meanwhile, the shoe store posted revenue of $2.34 billion in the period, also exceeding Street forecasts which had predicted $2.15 billion.

For the year, the company reported profit of $342 million, or $3.58 per share, while revenue was reported as $8.76 billion.

‘Our team delivered a great finish to the year with strong fourth quarter results that capitalized on resilient Holiday demand and a compelling assortment and inventory position from our brand partners,’ said Dillon.   

‘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.’

She continued: ‘We are proud of Foot Locker’s role in influencing and serving the global sneaker community, and next year, we will celebrate the 50th anniversary of the iconic Foot Locker brand.’

The move came after houseware giant Bed Bath & Beyond announced last month it would shut hundreds of stores. 

The retailer once owned more than 1,500 stores across America, but a recent purge has seen it aim to end the year at just 480.

The company has suffered through a tumultuous few months in the leadup to its latest decision, including massive losses, the death of its CEO, and an activist investor selling a huge stake in the company.

At least 416 of its US stores have been identified for closure, while every one of its 65 stores in Canada are also set to be shut down.

Homeware giant Bed Bath & Beyond is planning to close 416 of its stores this year as the struggling retailer struggles to stay afloat

Homeware giant Bed Bath & Beyond is planning to close 416 of its stores this year as the struggling retailer struggles to stay afloat

While some stores like Bed Bath & Beyond are hoping to avoid bankruptcy, Walmart officials said they are only shuttering underperforming locations

Many of America’s biggest retail brands are planning store closures this year, including Walmart which will close locations in Illinois, Wisconsin, New Mexico, Florida and Arkansas

Despite owning 953 locations across North America just a year ago, by the end of 2023 there will be only 360 flagship Bed Bath & Beyond stores in America alongside 120 Buybuy Baby locations.

The state that will be hit the worst is California, which will see 35 stores close, while Florida will lose 21, New York will lose 23, and Illinois will lose 18.

Second on the list of stores looking to close up shop is Tuesday Morning, which is shutting down more than half its locations in a desperate move to survive bankruptcy.

The home goods company is closing 265 stores as it struggles to survive, which will be its second wave of store closures in three years.

Its massive reorganization comes as the chain filed for Chapter 11 bankruptcy this month, meaning it is now forced to close its least profitable stores.

These have primarily fallen in California, which will see 30 stores closed, Florida, which will lose 23, and Texas, which will lose 19.

Other states set to see large closures includes Virginia with 10, Georgia with 12 and Colorado with 14.

Up to 74 Gap stores are also set to be closed in 2023, coming after the parent company closed four of its Banana Republic stores this year already.

The massive closures come after the firm announced two years ago that it would be closing roughly 350 stores by the end of 2023.

And while most of the damage has already been done after 276 stores have been shuttered since the announcement, 74 remain set for the chopping block.

While the company does not have a precise list of where the closures would come, if it’s closed down stores from the last two years are anything to go by then California will be hit the worst, after already losing 30 stores.

Meanwhile Party City is also expected to downsize, with 12 locations currently up for auction across the nation.

The store is another big brand to face bankruptcy, with a further 10 stores closing throughout February as the company navigates its attempt to stay afloat.

Iconic department store Macy's is also among those to announce closures for this year, as it is set to close four stores across California, Colorado, Hawaii and Maryland

Iconic department store Macy’s is also among those to announce closures for this year, as it is set to close four stores across California, Colorado, Hawaii and Maryland

The state that will lose the most Party City locations is New York with five, followed closely by Michigan with four.

Also on the list includes West Virginia, Missouri and Georgia with two each, while Iowa, Illinois, Louisiana, New Jersey, Oklahoma, Oregon and Texas are all losing one.

Walmart is among the highest-profile brands also looking to cut down its high street presence this year.

The iconic retailer is shuttering five big box stores and its last two remaining pickup-only locations, citing poor revenue.

Walmart’s closures come after the store routinely closes a handful of stores across the nation every year, with this year’s states to be hit chosen as Illinois, Wisconsin, New Mexico, Florida and Arkansas.

Big Lots is also closing down seven stores this year, with the discount chain looking to target small towns and move away from urban areas.

California will see three locations closed down, while Colorado will lose four.

Shopping mall staple Macy’s is closing four stores in the first quarter of 2023, with malls in California, Colorado, Hawaii and Maryland losing out.

The closures are part of Macy’s three-year plan to close 125 locations.

Another store to close a handful of locations includes The RealReal, which will shutter four stores and two consignment offices across the nation as it looks to cut $2 million in costs.

And after closing down over 150 stores since 2020, JCPenney is also planning to close its locations in Oswego, New York and Elkhart, Indiana this year.

Rounding out the list is Amazon, who have announced that they are closing several of its Fresh grocery and Go convenience stores.

The online retail giant is also pausing its planned expansion while it reevaluates its in-store strategy, with many of the US’s biggest brands also struggling to cope with a dip in the economy.