Huge Shoe Store Chain Shutting Down 400 Locations

2023 has seen a slew of stores closing. Some, like Bed, Bath & Beyond, Tuesday Morning and Christmas Tree Shops, are shuttering amid bankruptcy, while others, like Walgreens, Pizza Hut and Sears, are shutting down many locations as a cost-saving measure, and they aren't alone. Foot Locker plans to close 400 locations as well because they are underperforming.

The footwear chain also owns Champs Sports, and that brand will be the first to be hit, with 125 locations closing this year. Then, by 2026, 275 Foot Lockers across the country will shutter. In a call to analysts, company executives called the decision a "reset" since their total sales forecast for this year is lower than last year.

It is by no means an end to Foot Locker though, they plan to relaunch their retail brands and introduce more "experiential" store concepts to become more relevant to younger shoppers. Among the new strategies is one called the "Lace Up," which focuses on the different types of sneaker shoppers. The company has created categories for their shoe-loving customers including the "sneaker mavens," who represent themselves through their shoes, the "fashion-forward expressionists," who want their sneakers to make them look and feel cool, the "athletes," who are seeking high-performance sneakers, shoppers who want quality and comfort in their shoes, and deal hunters.

With the upcoming store closures, Foot Locker will be reducing their global store count by 10% so that in 2026 they will have 2,400 locations, however, they do still plan to grow, with Senior Vice President of Store Development Anthony Aversa stating, "We will increase our square footage by 10% to over 14.5 million square feet as we open up larger, more experiential expressions of our brands with a wider product assortment. New formats will surpass 400 locations."

As for which stores will be closing, that isn't yet known, but 200 of them will be in smaller regional malls and 200 will be in larger but lower-performing malls.