“As difficult as the decision is to do that, it’s the right thing to make sure that we continue to drive value for our shareholders, and we continue to drive productivity up for all of our banners that are remaining,” reassured the company’s CEO.Īs Foot Locker’s management reviewed their entire portfolio, they realized Footaction’s productivity and profitability run below the portfolio’s average. In the meantime, about a third of the chain’s stores will be repositioned into either Foot Locker Champs Sports. Regarding the timing, Johnson pointed out that “given the timing of the lease expiries, given the timing of the digital effort that we’ve seen, this is the time to make this decision.” He referred to the fact that in the next two years, approximately 40 percent of the Footaction stores will go through a natural lease expiry. We are taking advantage of lease expiration too,” further added Johnson.įootaction stores to be totally gone by 2023 Footaction at Cumberland Mall is the ultimate destination for all things boots and sneakers, whether its for basketball, running, training, or casual wear. “We are assessing each Footaction location and determining the best move for each, whether they should turn into Foot Locker stores or close. “We’ll be turning our focus on Foot Locker, Champs, Eastbay and Kids Foot Locker,” Johnson said.
So there is a fair amount of overlap from a store base, there’s a fair amount of overlap from a consumer base, even though the great work that the Footaction team has been doing of late to try to separate with different product assortments, etc.” So I think the math tells us that 85 percent of our Footaction stores are located in proximity of one of our other banners. “We identified key points in time that if we have to make moves, then we’ll make moves. Johnson, chairman and CEO at the athletic shoes group, explained they followed a similar process than that of last year when they close Runners Point. During a call with analysts that followed their financial release, the company’s leadership shared their thought process.Īsked whether there was a substantial overlap between Foot Locker stores the Footaction ones, Richard A. announced it will call it a day for its Footaction chain.
In Q1, Foot Locker opened 12 stores, remodeled or relocated 15, and closed 58, ending the period with 2,952.After releasing strong quarterly results Footlocker Inc. Store improvements have been top of mind for Foot Locker for some time, with the retailer in 2020 committing to opening more of its power stores and remodeling locations.
Foot Locker is also using the Champs Sports banner to boost its Eastbay banner offline, testing Eastbay stores that exist within Champs Sports locations.
"Difficult as the decision is to do that, it's the right thing," Johnson said.Ĭhamps Sports and Foot Locker specifically will replace some Footaction stores, Johnson said on the call. In 2020, the company tested changing some Footaction stores into Foot Lockers and those locations became more productive as a result of the shift, Johnson said, which helped inform the decision to convert many of those stores. "The map shows that 85% of our Footaction stores are located in proximity to one of our other banners," Johnson said, noting as well that the banner has a "fair amount of overlap" with its other banners in terms of customer and offering.įootaction, which Foot Locker acquired in 2004, lags its other banners in terms of both productivity and profitability, according to Johnson. Foot Locker is updating its store fleet, driven in part by the shift to digital inspired by the pandemic.įoot Locker said in a press release that Footaction's closures will "enable it to better serve its consumers in a post-COVID marketplace." Johnson referenced the shift to digital specifically in the company's decision to close the stores, as well as convenient timing of some of the lease expirations for the banner.
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