Foot Locker is accelerating its store strategy, focusing on its “reimagined” store concept, which first launched last April. During a recent earnings call, CEO Mary Dillon announced plans to either open or convert 80 stores to this updated format in the current year, significantly increasing from the eight currently operating. The retailer aims to refresh hundreds of smaller-scale stores in 2025, having upgraded 400 locations last year and targeting an additional 300 stores for this year. Despite these ambitious plans, Foot Locker reported a decline in sales for Q4, with total revenue dropping 5.7% to $2.2 billion, although comparable store sales increased by 2.6%.
Looking forward, Dillon emphasized a shift in Foot Locker’s operational strategy to maintain a “tighter, stronger store base” by closing 400 mall-based stores and abandoning underperforming international markets. The company has already decreased its global store count by over 20% since 2019, refocusing on higher-quality locations. The initial response to reimagined stores has been positive, generating significant annual sales. While Foot Locker plans to prioritize the opening of these stores, the company is also navigating a challenging macroeconomic environment, which is affecting consumer spending patterns. Dillon pointed out that many customers are young and face limited discretionary budgets, prompting cautious spending, especially amid rising living costs and uncertainties over tariffs.
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About The Author: Jeff Dervech
Jeff Dervech is a Tampa local commercial real estate agent, specializing in the arena of retail strip center and shopping centers.
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