It feels like the end of an era for shoe retailer Foot Locker, which announced this week that it will close more than 400 malls across the United States over the next three years. This comes as the company focuses on specialty stores that target specific customer bases.
During a presentation at Investor Day on Monday, the company said the store closures would make way for the birth of 300 new “concept” stores strategically placed to target “sneakerheads”, affluent shoppers and younger generations. The new stores (and popups) will be more of an experience rather than a traditional retail experience.
This new business plan has been dubbed the company’s “Lace Up” initiative.
“We have reestablished joint planning, as well as data and information sharing to better serve customers and the fruits of our renewed commitment to each other will begin to appear and holiday this year,” said Foot Locker CEO Mary Dillon to investors. yesterday.
The 400 specific stores that are closed represent about 10% of Foot Locker’s total sales, while 35% of the company’s total sales come from mall stores.
The company has yet to reveal the exact location of the stores that will be closing.
Foot Locker hopes the new store concepts will eventually account for 50% of the company’s total sales, with a total sales target of $9.5 billion by the end of 2026.
Currently, Foot Locker operates approximately 1,300 shopping centers in North America.
The sneaker retailer was up more than 5% in a one-day period on Tuesday afternoon following the news.