Foot Locker to close 400 stores in North America in yet another setback to retail shopping

Famous American sportswear and footwear retailer, Foot Locker, has announced around 400 mall stores will be shuttered within the next three years. The announcement is another major blow to the mall retail sector as other big brands keep adapting to changing shopping habits and the anticipated reduction in consumer spending.

While making the announcement, Foot Locker said it plans to close “underperforming” outlets across North America to transform its retail portfolio.

In a press release, CEO Mary Dillon said: “We are entering 2023 with a focus on resetting the business — simplifying our operations and investing in our core banners and capabilities to position the company for growth in 2024 and beyond.”

At an investor day event, Tony Aversa, Senior Vice President of Global Store development said the planned closures represent around 10 percent of Foot Locker’s total sales.

He added that the company’s focus will now be on higher performing locations, “new store concepts” and its outlets in Western Europe and Southeast Asia.

He said: “These new concepts allow us to stay focused on our core consumer, while also acquiring new (ones).”

He added that the company will have about 400 new concept locations — including play-focused outlets — by 2026, up from approximately 120 this year.

Currently, Foot Locker operates around 2,700 stores globally, including 87 outlets in Canada. With the addition of the new concept outlets, the company will still have about 300 fewer stores in 2026 compared to this year.

The email requesting further information on the expected closures and the number of affected Canadian stores and employees was not immediately responded to.

Foot Locker is one of many major retailers that have announced store closures recently as the retail sector encounters growing economic headwinds and a fast-changing consumer base.

Nordstrom announced recently that it would close its six Canadian department stores and seven Nordstrom Rack shops while Bed Bath & Beyond, another American retail chain, announced in February that it would leave Canada.