Foot Locker announces plans to close 400 stores in favor of freestanding locations
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Foot Locker has announced a major change to its business model, while revitalizing its relationship with Nike.
The retailer plans to close 400 low-performing, mainly mall-based locations that represent about 10% of their total sales. They will also close 125 of its Champs Sports locations.
However, the company plans to open hundreds of new, freestanding concept stores that will lean on a “shared vision of the future marketplace” it now has with sneaker giant Nike, which has been increasingly moving toward a direct-to-customer online sales model.
The company plans to feature more LeBron James and Kevin Durant retro Nike shoes for sale this coming holiday season, Foot Locker’s chief merchandising officer said on Monday.
The move is part of a new business strategy they are calling its “Lace Up” plan, meant to simplify operations and reinvest in core brands.
Foot Locker expects Nike to make up about 60% of their sales by 2026.