During its Investor Day on Monday, Foot Locker announced big changes in an effort to streamline and bump sales.
Foot Locker and subsidiary brand Champs are revamping their brick-and-mortar sales strategy, having found that 400 U.S. stores in malls make up less than 10% of the brand’s total sales.
In result, the company plans on closing 400 Foot Locker locations across the country by 2026, as well as 125 Champs Sports stores.
But Foot Locker isn’t totally scaling back on in-person shopping. In place of the original stores, the company will open more than 250 new “concept” stores.
There’s also a plan to recalibrate which products Foot Locker prioritizes. Merchandising will have a much larger emphasis on the company’s partnership with Nike — with plans to increase the supply of old-school LeBron James and Kevin Durant shoes.
Foot Locker CEO and president Mary Dillon reportedly characterized the partnership with Nike as “revitalized.”
By market close on Monday, Foot Locker’s stock price had plummeted from $44.22 to $39.88. But on Tuesday, it made a decent recovery — hitting $42.82 by the closing bell.
