This is it peeps. The sneaker industry is changing, and many of these changes will probably be permanent. From Eastbay closing its doors, ending an era, to huge brands dropping their production, it’s all moving fast. And today’s news isn’t too different, because they include more goodbyes. In fact, this news includes 400 different goodbyes, and all of them are Foot Locker closings. So how will all that affect the industry? And what will Foot Locker do following all these closures? Let’s find out together!
2022 Wasn’t too Good for Foot Locker…
Before we get into the future news, let’s look at what went down in 2022. So, Foot Locker first opened its doors in 1974, making it a pillar of the sneaker industry. And with more than 2,700 stores all around the world, it’s hard not to feel the retailer’s influence. However, 2022 felt like a down period for Foot Locker. Why? The retailer’s net income dramatically dropped in 2022 Q4 ($19 million) in comparison to 2021’s Q4 ($103 million).
In addition to the dramatic difference in income, Foot Locker opened and closed many stores. For example, in 2022’s Q4 only, the company opened 21 new stores, relocated 45, and closed 101 stores. So in total, we currently have 2,714 stores in operation. And although these Foot Locker closings are not this deep in the big schemes of things, 2023 hit differently!
400 Foot Locker Closings Before 2026?
At first, all these store closures sound concerning, but that’s not the whole story! You see, Foot Locker’s business plan for the years to come includes cutting down to go up. The 400 store closures from now through 2026 represent only 10% of the retailer’s sales. They’re also all located in malls and generally underperforming. 125 of these stores are Champs locations that FL will exit.
Now, the retailer plans to grow sales to $9.5 billion by 2026. So, in addition to 400 Foot Locker closings, we have 300 store openings on the horizon. In other words, the company is not really in a pickle, although it looks like it at first glance! Mind you, the number of Nike products started dropping in 2022 following Nike’s DTC strategy. And that has a big impact on FL’s revenues since Nike products usually make up a high percentage of the retailer’s sales.
Will Foot Locker Closings Affect Sneakerheads?
If you are one of the people who preferred the classic way of sneaker shopping, it might. But if you embraced the online shopping experience, the news shouldn’t be too heartbreaking. All you need to do before drop day is to have a sneaker bot that supports Footsites! And why not go the extra mile? You can get an all-in-one bot like NSB3 that caters to all your tastes. From Nike SNKRS to Shopify and Footsites, NSB is the bot you need by your side according to our users! Godspeed
