Skip to main content

Foot Locker Closing Over 400 Stores by 2026 with Brand Reset

By March 31, 2023Sneaker News

Foot Locker Closing 400 Stores - AIO BotSo, is this another inflation-hits-sneakerheads type of situation, or is Foot Locker closing stores for other reasons? Well, either way, we can all agree that ever since Kanye left Adidas, things have been WEIRD! So many things have happened and changed in the industry, it’s hard to keep up!

If we’re going to pinpoint all the major events that happened in the sneaker industry alone, you’ll be SHOOKETH. Foot Locker closing is the least of the most surprising events in 2023 alone. Here’s the sequence of events leading up to the matters of today:

FOOT LOCKER CLOSING 400 STORES

Earlier this month, the decision of Foot Locker closing its stores came after a brand reset decision. Apparently, Foot Locker is shutting down around 200 stores in class C and D malls, and 200 lower-performing A and B malls. Class B or C malls have fewer tenants than class A malls – in other words, have fewer shoppers. On the other hand, A malls usually have grocery stores, luxury retailers, food courts/restaurants, gyms, and more. This means that they are probably very bright, properly aerated, and have a lot of customers.

So, as part of Foot Locker’s “Lace Up” plan to reset the brand, they wanted to also grow total revenue. Foot Lockers aims to grow its total revenue by $9.5 billion by 2026. Which, obviously means tying off loose ends. They also aim to embrace a different approach to brick-and-mortar stores with standalone store formats instead of mall stores. This way they could offer a wider selection of sneakers to sneakerheads and not depend on the mall’s demographic. 

Therefore, Foot Locker closing 400 mall stores only comes in advance of opening 300 new free-standing stores. 

Foot Locker Closing - AIO Bot

Foot Locker’s Thought Process?

Well, Foot Locker closing its stores is purely business and for financial gain. And, in the wake of an ongoing potential recession, we’re pretty sure they can’t afford money holes. If the locations aren’t making Foot Locker money, they can’t keep maintaining them. 

Also, Foot Locker is trying to focus more on niche markets which is a younger and more diverse consumer base. And with online shopping and stores embracing a more tokenized approach, the malls are probably not the money-making best places. So, although this decision might be shocking and seem a bit extreme, it’s definitely a profitable move for Foot Locker. How will this affect the sneaker industry in the coming years? Well, by 2026 we might all have moved to the Metaverse and not have to worry about actual malls at all!