Cousins! Over 400 hundred Foot Locker stores in various locations will be seeing their final days pretty soon as the franchise declares to shut down low performing stores in shopping malls across the country in the next couple of years!
Despite the seemingly shocking news the company had announced that they have strategized a new plan set to go in effect in the next few years.
According to Fox Business, executives plan to open freestanding shops that will cater to top consumers, dedicated sneaker fans, kids and folks that earn a specified annual income.
The “ Lace Up” plan is noted as Foot Locker ultimately refreshing their partnership with Nike. Apparently the two companies have “shared vision of the future marketplace, aligning on growth plans and key strategic areas like basketball, kids and sneaker culture.”
Reports read that Nike has proceeded in reducing the number of traditional retail stores and websites they allow folks to sell their products throughout the last few years.
“We’ve reestablished joint planning, as well as data and insight sharing so that we can better serve customers and the fruits of our renewed commitment to one another will begin to show up and holiday this year,” said CEO Mary Dillon.
Statistics show there are over 1,300 Foot Locker stores within malls in North America,. The company is expected to shut down 420 stores by 2026. They anticipate closing 25% of its locations in A- and B-rated malls and 50% of its stores in C- and D- rated malls.
Mall ratings reflect sales per square foot. Foot Locker displayed a presentation showing sales at A- and B-rated malls increased by 8% since 2019, according to Business Insider.
“These 400 stores represent nearly 10% of our total sales,” says senior vice president of store development Tony Aversa said.
Foot Locker also plans to open an additional 300 “new concept” stores by 2026. Which will includes stores located outside of malls. They expect 50% of their revenue to derive directly from outside of malls within their newly issued business plan.
As per Fox Business, Foot Lockers goal is to increase their annual revenue by a total of $1 billion to $9.5 billion by the year 2026. They also expect to have 2,400 open stores, which is around 300 less than the stores they have now.
The company’s investors have an additional series of strategies they believe will help the franchise perform better which will include a 15,000-square-foot “community” store for locations with “strong affinity for sneakers” and 10,000-square-foot “power” stores that would offer an “elevated experience” in shopping areas with a broad range of consumers. They also plan to open 7,500 square-foot “house of play” store that will market children’s products.