Foot Locker 2023: Closing 400 Stores Amid Sales Drop and Earnings Decline
Discover why Foot Locker plans to shut 400 stores in 2023 as it faces declining sales and earnings, while launching new retail concepts to attract younger customers.
Foot Locker to close 400 stores, cutting 10% of sales footprint in 2023
Foot Locker, the prominent footwear retailer, is set to close 400 stores, accounting for 10% of its total sales, as part of a strategic effort to streamline operations and rejuvenate its brand in 2023.
This decision follows the company's recent financial report showing a slight sales decline to $2.34 billion, down 0.3% compared to the previous year. Looking ahead, Foot Locker projects a further sales decrease between 3.5% and 5.5% for the year. Despite these challenges, the retailer posted a holiday quarter profit of $19 million ($0.20 per share), though this is a significant drop from $103 million recorded the prior year.
In addition to store closures, Foot Locker is introducing innovative retail concepts aimed at revitalizing its brand image and expanding its appeal to younger, diverse consumers. CEO Mary Dillon emphasized during the earnings call that the company is strengthening its collaboration with Nike and responding to increased demand for comfortable apparel driven by remote work trends.
"Targeting the fastest-growing consumer segments in the U.S. is essential," Dillon stated. "Winning over young, diverse customers is critical for long-term success."
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