Footwear retailer Foot Locker has announced plans to close 100 stores in 2025 as part of its business strategy to streamline its operations amid an increasingly challenging economic environment.
The news to close around 100 stores by the end of 2025 was shared on an earnings call announced by Foot Locker CFO Mike Baughn.
Baughn said: “The upper end of our comp range assumes we continue to drive comps at our more recent run rate from the last three quarters, led by the impact of our strategic initiatives and a relatively stable macro backdrop.
“The lower end does factor in some impacts related to marketplace and consumer uncertainty. Overall, our store count is expected to be down approximately 4% in 2025, with square footage down approximately 2%. We expect to add roughly 20 new stores in a year and to close approximately 110.”
Moving forward, the company has included the changing consumer behavior in their future guidance, with factors such as marketplace uncertainty leading to softer sales, according to the company.
Earlier this year, the footwear retailer announced its plans to renovate 400 stores as part of its turnaround strategy after struggling to stay afloat amid increasing competition.
Foot Locker saw its 2024 total revenue fall to $7.9 billion compared to $8.1 billion in the year prior.
The announcement comes on the heels of Foot Locker’s $2.5 billion acquisition by Dick’s Sporting Goods last week.
Additionally, footwear giant Skechers was recently acquired by 3G Capital and set to transition into a private footwear company.
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