NEW YORK — In a major shake-up for the sporting goods sector, Foot Locker is set to shutter hundreds of its U.S. stores, signaling ongoing challenges in brick-and-mortar sneaker retail amid a digital shift.
The closures, affecting both Foot Locker and its subsidiary Champs Sports, come on the heels of Dick’s Sporting Goods’ $2.4 billion acquisition of the chain, which closed on September 8.
The move will eliminate a whopping 400 locations by the end of 2026, including 275 Foot Locker outlets and 125 Champs Sports spots.
This represents the latest chapter in Foot Locker’s multi-year effort to streamline its operations, having already reduced its global footprint by over 20% since 2019 through exits from non-core markets and banner conversions.
Former Foot Locker CEO Mary Dillon outlined the strategy during the company’s fourth-quarter earnings call.
“Since 2019, we’ve closed over 20% of our global doors, including the exiting of non-core banners and the exit or conversion of select international markets,” she said.
“In the last two years alone, we’ve also pared back our store exposure at the Champs Sports banner as part of its repositioning.”
Dillon emphasized the focus on viability, adding, “And going forward, we’ll be operating with a tighter, stronger store base with reduced exposure to lower-tier malls.”
Industry-Wide Pressures Fuel Store Closures
The decision underscores broader turmoil in the sneaker and athletic retail space, where online dominance has eroded traditional sales channels.
Major brands like Nike are increasingly bypassing physical retailers by hosting exclusive drops on their apps, leaving stores without the must-have inventory that drives foot traffic and impulse buys for items like apparel and accessories.
“When stores do not have the hottest sneaker items, they lose out on ancillary sales like T-shirts, socks, and other merchandise,” industry observers note, highlighting how this dynamic has squeezed margins for chains reliant on mall-based locations.
Foot Locker’s challenges echo the 2016 collapse of Sports Authority, another giant that couldn’t adapt to e-commerce’s rise.
The company has been paring back mall exposure for years, with some closures predating the Dick’s deal.
Post-acquisition, the combined entity will boast over 3,200 stores across 20 countries in North America, Europe, Asia, and Australia, plus licensed operations in the Middle East and beyond.
Strategic Repositioning for a Digital Era
The mergers aim to fortify Dick’s position at the crossroads of sports and culture, blending Foot Locker’s urban sneaker expertise with Dick’s broader athletic offerings.
Yet, the store rationalization is a pragmatic response to a fragmented market, where consumers favor direct-to-consumer platforms over crowded retail floors.
As the dust settles from the acquisition, these closures could reshape local shopping districts, particularly in lower-tier malls already hit hard by retail vacancies.
For workers and communities, the impact may linger, though the company frames it as essential for long-term strength in a fast-evolving industry.
Still, it’s hard to not feel the unsettling economic impact this will have within our labor workforce.
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