Popular sneaker retailer closing over 100 locations

Sneakers have been having an extended moment.

Sneakerhead culture has moved into the mainstream, and it’s no longer uncommon to see a man wearing a suit along with Jordans. That Nike-owned brand has sort of created its own fashion, along with a different set of rules.

In addition, we’re at an unprecedented time for new sneaker brands. Yes, Nike dominates, but new players like Hoka and NoBull have found markets and long-standing companies including Reebok, Adidas, Puma, and Brooks have found their own markets to serve.

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The sneaker retail space, though, has been very challenging. Nike has worked to move some of its business to a direct-to-consumer model. That has included some limited-edition, high-end “sneaker drops,” which previously would have driven customers to shoe stores.

In some cases, Nike has simply cut its offerings to some retailers. In others, it dropped some partners entirely.

Nike has, however, learned that direct-to-consumer is a very challenging model.

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Because of that, it has stepped up its relationship with its most important partners, which includes Foot Locker (FL) as well as Dick’s Sporting Goods (DKS) , which just agreed to acquire the sneaker giant. As the deal closes, however, Foot Locker already has a plan to shut down over 100 locations.

Foot Locker closing over 100 stores

Foot locker has become the rare chain that’s so big it has to close stores every few years. That’s usually due to shifting populations and changes in demand.

Before its deal to be purchased by Dick’s Sporting Goods became public, the company had shared plans to fix its retail portfolio.

“Overall, our store count is expected to be down approximately 4% in 2025, with square footage down approximately 2%. We expect to add roughly 20 new stores in a year and to close approximately 110,” CFO Mike Baughn shared in the company’s fourth quarter earnings release.

The chain closed 400 stores in 2024.

It has plans to update hundreds of locations under a two-pronged plan. “Reimagine” is a more thorough overhaul that requires the store to be closed for longer, while “Refresh” is quick and only involves a brief shutdown.

“First, in stores, we’re upgrading our customers’ experience through both our new Reimagine concept and extensive Store Refresh program, both of which remain an important part of our plans looking ahead….We now have eight Reimagined doors open across North America, Europe, and Asia,” CEO Mary Dillon shared.

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She’s happy with the initial results.

“The response to our Reimagined doors has been extremely positive from our customers, our brand partners, and our landlords, and we’re accelerating our focus on Reimagined as part of our efforts in 2025,” she added.

Remodels are a big part of the Foot Locker plan

After the Dick’s sale goes through, Foot Locker is expected to be run as an independent company. That means its remodel plans should move forward.

“In 2024, we also completed over 400 Refreshes, which elevated and improved consistency across our global Foot Locker and Kids Foot Locker doors, and we’re planning for roughly 300 more Refreshes in 2025,” Dillon shared.

The improved experience is not just for brick-and-mortar locations.

“In digital, we made meaningful advancements in the customer experience, including the rollout of our new mobile app in the U.S. in November, and it increased our digital penetration 100 basis points to 18.2%,” she added.

Foot Locker also made a key decision about not pursuing certain markets.

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“In 2024, we announced our plans to exit international markets, including South Korea and Norway, Sweden, and Denmark. We also made the decision to convert select markets in Europe to a license model,” Dillon said.

Foot Locker has entered into a definitive merger agreement under which Dick’s will acquire the sneaker retailer and its associated brands. This transaction implies an equity value of approximately $2.4 billion and an enterprise value of approximately $2.5 billion.

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