Foot Locker president and chief executive officer (CEO) Mary Dillon emphasised the company’s “Lace Up Plan” is “unlocking” meaningful opportunities by leveraging strong brand partnerships, differentiating in-store experiences through refreshes and new concept doors, and enhancing customer connections via digital and loyalty.
The company explained the plan will see the closure or transfer of operations for approximately 30 stores of the company’s 140 stores in Asia Pacific and 629 stores in Europe with these changes expected to be completed by mid-2025.
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Dillion added: “We are also continuing to simplify our business to enable greater focus on our core banners and markets and have taken steps to further streamline our operations in Asia and Europe, while expanding our licensing partnerships. In addition, to better support our strategic progress, to increase team member collaboration, as well as ongoing expense discipline, we made the decision to relocate our headquarters to St. Petersburg, Florida in 2025.”
Strategic update
During the second quarter, the retailer opened five news stores and closed 31 stores. Foot Locker also remodelled or relocated 14 stores and refreshed 67 stores to its current design standards, which it said incorporates “key elements” of the current brand design specifications.
Presently, Foot Locker operates 2,464 stores in 26 countries in North America, Europe, Asia, Australia, and New Zealand, in addition to 213 licensed stores operating in the Middle East and Asia.
As part of its Lace Up Plan and ongoing efforts to simplify its business model and focus on core banners and regions, Foot Locker outlines the following actions in Asia Pacific and Europe:
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By GlobalData- Closing its stores and ecommerce operations in South Korea
- Closing its stores and ecommerce operations in Denmark, Norway, and Sweden
- Signed agreements with Fourlis Holdings Société Anonyme (Fourlis Group), a retail group and licensing operator in Southeast Europe, to transfer store and ecommerce operations in Greece and store operations in Romania.
The retailer has also entered into agreements with Fourlis Group for future store and ecommerce expansion in South East Europe. In combination with future expansion opportunities in Greece and Romania, Foot Locker and Fourlis Group foresee an opportunity for over 100 stores in the region over the next several years.
Headquarter relocation, opening Global Technology Services (GTS) hub
In Foot Locker’s continued efforts to bolster its strategic progress against the Lace Up Plan, the retailer is also moving its global headquarters to St. Petersburg, Florida in later 2025.
The move is intended to further build its presence in the region, enable increased collaboration among teams across banners and functions, while also reducing costs with Foot Locker noting it plans to maintain only a limited presence in New York city going forward.
In September, Foot Locker is also inaugurating its Global Technology Services (GTS) hub in Dallas, Texas. Led by chief technology officer Adrian Butler, this new technology and innovation centre is expected to accelerate its technology and cross-functional collaboration with access to a best-in-class technology talent pool.
Foot Locker Q2 2024 results in brief
Foot Locker experienced a decline in profits in its second quarter (Q2), reporting a net loss of $12m compared with a net loss of $5m for the corresponding prior-year period. This was despite a 1.9% increase in total sales.
- Total revenue increased from $1.86bn to $1.9bn
- Comparable sales rose 2.6%, led by global Foot Locker and Kids Foot Locker comparable sales growth of 5.2%
- Loss from operations was $9m as compared to a profit of $1m in the same quarter last year
- Net loss was $12m compared to the prior year period’s $5m.
