Foot Locker Looking To Shutter 100 Stores
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Foot Locker has revealed plans to close about 110 stores this calendar year after reporting a loss of US$49 million for the last quarter.
The closures follow the cull of 147 stores globally last year – however it will continue to open new stores where there is market potential, with about 40 likely this year.
“We continue to prune the fleet of under-productive stores and open a few select, high-profile stores,” Foot Locker CFO Lauren Peters said in an earnings call with investors.
Most of the stores to be closed are located in “deteriorating” shopping malls, typically in regional US, where shoppers are increasingly going online to buy essentials.
Where an American consumer may once have gone to a Foot Locker store to buy Nike or Adidas shoes, they can now go online to the manufacturer’s site or to a portal like Amazon where they can shop multiple categories without leaving the sofa.
Globally, Foot Locker has 3310 stores after opening in 94 new locations last calendar year.
“The disruption that has characterised the retail industry recently is not going away,” CEO Richard Johnson added. “Consumers want experiences, they want cool products, and they want it all – fast.”
Questions & Answers
Q.How many stores is Foot Locker planning to close this year?
How many stores is Foot Locker planning to close this year?
Foot Locker intends to close approximately 110 stores in the current calendar year. This decision follows a US$49 million loss reported for the last quarter, indicating a deliberate step to streamline operations and improve financial performance.
Q.Where are most of the stores scheduled for closure located?
Where are most of the stores scheduled for closure located?
Most of the stores slated for closure are situated in 'deteriorating' shopping malls, primarily within regional US areas. These locations are being impacted as shoppers increasingly opt for online purchases, particularly for essential items.
Q.Will Foot Locker be opening any new stores this year?
Will Foot Locker be opening any new stores this year?
Yes, Foot Locker plans to open around 40 new stores this year in locations with strong market potential. This strategy involves pruning under-productive outlets while simultaneously expanding into select, high-profile areas.
Q.What reason does Foot Locker give for consumers no longer visiting their stores?
What reason does Foot Locker give for consumers no longer visiting their stores?
Consumers are increasingly shopping online directly from manufacturers or large portals like Amazon, where they can purchase various items without leaving home. This shift means they are less reliant on physical Foot Locker stores for shoes.
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