A massive shoe retailer now plans to close several stores by 2026, part of a restructuring plan to improve its sales and traffic.
Foot Locker, under Chief Executive Mary Dillon, who has held the job for a little more than a year, has decided to close 275 of its ‘namesake locations’ by 2026 in addition to closing 125 (about half) of its Champs Sport stores, reports TheStreet.
The company has built its business on the back of Nike, which has been the leading player in sneaker culture.
It offers the biggest limited-edition releases and has the ability to drive people to stores.
That has been a mixed blessing for Foot Locker in recent years as Nike has built out its direct-to-consumer business reports TheStreet.
Unfortunately for Foot Locker, some of the sneakers that used to get sold through the company and other partners now get sold via Nike’s app.
The company has cut Foot Locker’s product, and that has been especially bad for the company’s Champs Sport chain.
“While the Champs Sports banner continues to be the most acutely impacted by changes in our Nike allocation, the team is getting sharper with the brand’s positioning as it appeals to that active athletes,” said Mary Dillon during the company’s earnings call.
While many people believe that malls are dying, the reality is that B and C malls have struggled while top-tier A shopping centers continue to thrive.
That’s causing Foot Locker to rethink its store portfolio.
The chain will close 275 Foot Locker locations by 2026.
That plan generally lines up with expiring leases.
The vast majority of the closing stores will be in less-successful malls, reports TheStreet.
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Other Economy News Today
An unexpected shoe retailer now permanently closes one of its popular stores with more locations expected to shutter soon.
The New Balance store in Fairview Heights, Illinois is shutting its doors for good in just days following an abrupt announcement, reports The-Sun.
The brand with 111 stores across North America has now closed one of its popular locations in Illinois as of Sunday, November 26.
“Shoe shoppers in Fairview Heights lost Sketchers back in June and will now struggle to find comfortable sports and casual shoes,” says The-Sun.
Store items just moments prior to the closure were on sale, allowing locals to make the best out of these deals.
Store associate Victoria Martin revealed the location’s final day to the Belleville News-Democrat.
She was unable to give an official reason behind the closure and highlighted that the store was often recommended by nearby foot doctors.
Martin added that many customers are upset with the move with recent comments on its website focusing on the closure.
“Sorry you’re closing. Been a customer for many years. Recommend others to purchase from you,” one wrote.
“I’ve purchased shoes at this store in Fairview Heights for years and always had excellent quality of service with a pleasant smile,” another added.
“I deeply regret the notice of your choice to close the only store in Metro East. I live and work in Illinois,”
After Sunday’s closure, New Balance customers will have to travel to Richmond Heights or Creve Coeur in Missouri to visit the store.
Meanwhile, other big-name retailers are set to shut up shop in the state in January next year.
TJX plans to close a staggering 6 TJ Maxx and Marshalls locations in Chicago, Illinois in early 2024.
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