It looks like the top of an era for foot locker shoe store that announced this week that it should close greater than 400 malls across america over the subsequent three years. It is because the corporate is shifting its focus to specialty stores that concentrate on specific customer bases.
In an Investor Day presentation on Monday, the corporate said the shop closures will give strategy to the birth of 300 recent “concept” stores, strategically placed to cater to “sneakerheads”, affluent shoppers and younger generations. The brand new stores (and pop-ups) can be more of an experience than a conventional shopping experience.
This recent marketing strategy was dubbed the corporate’s “Lace Up” initiative.
The implementation will work with Nike as each firms view the mutually helpful plan as one which invests in the “sneaker culture” and the long run of the sneaker consumer, CNBC reported.
“We have brought back planning together in addition to data and insight sharing so we will higher serve customers, and the fruits of our renewed mutual commitment will begin to point out and holiday this yr,” Mary Dillon, CEO of Foot Locker, told investors yesterday.
The precise 400 stores which might be closing account for roughly 10% of Foot Locker’s total sales, while 35% of the corporate’s total sales come from mall stores.
The corporate has not yet revealed the precise locations of the stores that can be closed.
Foot Locker hopes the brand new concept stores will eventually account for 50% of the corporate’s total sales, with a goal of total sales of $9.5 billion by the top of 2026.
Currently, Foot Locker operates roughly 1,300 shopping centers across North America.
The sneaker retailer has surged greater than 5% in someday since Tuesday afternoon following the news.