Foot Locker, the US sportswear and footwear retailer, is planning to close over 400 mall-based stores by 2026.
This comes as the brand aims to pivot its business strategy to connect with more niche markets. The brand is committing to is new ‘Lace Up’ strategy which will see the brand simplify the business and shutter underperforming banners and stores.
The plan includes ‘resetting’ the business and growing total revenue to US $ 9.5 billion by 2026, according to executives at an investor event and as a part of this plan, the brand will diversify its portfolio and embrace new standalone store formats which will offer a wider selection of products for sneaker lovers.
The brand expects 2023 to be a reset year with both sales and comps projected to drop 3.5 per cent to 5.5 per cent and the retailer will use the next 12 months to simplify the business and invest in other areas.
“The sneakerhead mindset is on the rise, with sneakers becoming a favorite avenue for individual expression where newness and collectibility truly fuel demand for more,” Foot Locker CEO Mary Dillon said at the event.
A new ‘store of the future’ concept is also being developed by the retailer which will open its first location in New York City in 2024. The store will feature dedicated women’s, men’s and kids’ spaces for better inclusivity, and emphasise digital connectivity.
Aiming to attract a larger audience, Foot Locker will roll out a new brand platform and campaign later this year to invite more shoppers into the sneakerhead community.
Foot Locker’s decision to zero in on niche markets through its new experience-focused stores comes as sneaker sales are growing.
Apart from bringing in new brands to diversify its product portfolio, the brand aims to strengthen its relationship with Nike which the company states will remain its largest brand partner and that both brand have workday hard to revitalise their partnership.
