CHICAGO, Ill. – Foot Locker has announced plans to close over 400 stores inside shopping malls as part of its newest business plan, called “Lace Up,” which aims to act as a reset for the retail sneaker chain.
While the company plans to close around 420 low-performing stores by 2026, it also plans to open more than 300 new, free-standing stores with three new store formats, including “community” stores, “power” stores, and “house of play” stores focused more on children. Foot Locker currently operates 11 stores in the area, including Calumet City, Chicago Ridge, Joliet, Champaign, Country Club Hills, Matteson, and Hobart Indiana, and multiple Kids Foot Lockers and Champs Sports locations throughout Chicagoland.
According to Foot Locker’s website, the company currently has approximately 2,700 retail stores across the globe, which includes North America, Europe, Asia, Australia, and New Zealand. It is still unknown which specific stores Foot Locker will be closing or when those store closures will be announced.
“Our team delivered a great finish to the year with strong fourth-quarter results that capitalized on resilient holiday demand and a compelling assortment and inventory position from our brand partners,” said Mary Dillon, President and Chief Executive Officer. “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.”
As of January 28, 2023, the company’s merchandise inventories were $1.6 billion, 29.8% higher than at the end of the fourth quarter last year. During the fourth quarter of 2022, the company paid a quarterly dividend of $0.40 per share. For the full year 2022, the company repurchased 4.1 million shares for a total of $129 million and paid a total of $150 million in dividends. The Board of Directors declared a quarterly cash dividend on the company’s common stock of $0.40 per share, which will be payable on April 28, 2023, to shareholders of record on April 14, 2023.
Foot Locker’s new store formats are set to be introduced in the coming years, with the company aiming to position itself for growth in 2024 and beyond.
