Two years ago, Foot Locker unveiled its “Lace Up” plan, which will close up to 400 mall stores by 2026—approximately one-third of its North American mall footprint. The company referred to it as a “business reset,” aiming to invest in digital growth and new concepts.
The move signals a sharp retreat from malls as foot traffic dwindles, raising urgent questions: how will employees, mall communities, and local businesses adapt to hundreds of shuttered sneaker doors?
What Is Actually Going On?
Foot Locker, founded in 1974, operates over 2,700 stores globally under banners including Foot Locker, Kids Foot Locker, Champs Sports, WSS, and atmos.
Then CEO Mary Dillon, who had been in charge since September 2022, unveiled the “Lace Up” plan on March 20, 2023. Senior VP Tony Aversa highlighted: “These 400 stores represent nearly 10% of our total sales.”
What the “Lace Up” Plan Entails?
Foot Locker’s “Lace Up” plan is a multi-year strategy designed to modernize the company as it approaches its 50th anniversary.
Dillon structured it around four pillars to expand sneaker culture, reshape real estate, deepen customer loyalty, and build best-in-class omnichannel capabilities.
Pillar 1: Expand Sneaker Culture
Foot Locker targets growth beyond sneaker enthusiasts into performance, casual, and premium lifestyle sneakers.
Key actions include revitalizing Nike partnerships, growing non-Nike brands to over 40% of sales by 2026, and boosting exclusive products from 15% to 25% of revenue to capture diverse consumer personas.
Pillar 2: Power Up the Portfolio
Each banner now has a distinct role: Foot Locker for sneaker enthusiasts, Kids Foot Locker for next-generation fans, Champs Sports for active athletes, WSS for Hispanic communities, and Atmos for innovation.
The plan closes 400 mall stores, opens over 300 new concept stores, and increases square footage by 10% despite having fewer locations.
Pillar 2: Real Estate Transformation
Foot Locker is closing 400+ stores—half in C/D-rated malls, half in underperforming A/B-rated malls—while opening 300+ off-mall concept stores: 15,000 sq ft Community, 10,000 sq ft Power, and 7,500 sq ft House of Play.
Off-mall revenue is expected to rise from 35% in 2023 to 50% by 2026.
Pillar 3: Deepen Customer Relationships
The FLX loyalty program is evolving into a data-driven ecosystem, expanding rewards, exclusive product access, and personalization. Pilots in Canada and the U.S. aim to grow loyalty-driven sales from 25% to 50% by 2026.
Advanced AI and analytics guide recommendations, predictive search, and omnichannel content for members.
Pillar 4: Be Best-in-Class Omni
Foot Locker invests in e-commerce, mobile apps, and omnichannel fulfillment. Digital sales grew from 17% to 21.8% of revenue by late 2024.
Nearly all stores now offer Buy Online, Pick Up In Store (BOPIS) and real-time inventory visibility, which boosts omnichannel customer spending more than threefold.
Revenue Shift Targets $9.5 Billion
The original goal was to achieve $9.5 billion in revenue by 2026, with an EBIT margin above 10% and a ROIC in the low to mid-teens. Following slower-than-expected 2023 results, the revenue target shifted to 2028.
Dillon described 2023 as a “reset year,” absorbing store exit costs and guiding for a 3.5–5.5% decline in sales to pave the way for future growth.
Why Foot Locker Is Retreating From Malls?
Structural mall foot-traffic declines—nearly 20% since the pandemic—prompted the shift. Dillon said on March 27, 2023: “The consumer’s been under pressure for a while… people are being more choosy.” Nike’s DTC pivot also reduced its share of Foot Locker sales from 70% (2021) to 55-60% projected by 2026.
The closures protect long-term profitability and enable investment in experience-driven stores.
Where Are Foot Locker Stores Closing and Opening?
Foot Locker is closing over 400 stores, mostly C- and D-rated, in North American malls while exiting parts of Asia and Europe. Simultaneously, over 300 new off-mall “Community,” “Power,” and “House of Play” stores are opening, alongside eight or more reimagined flagships globally.
By the end of 2025, 800 stores will have been refreshed, shifting the focus to experiential shopping under the Dick’s Sporting Goods brand.
Dick’s Acquisition: Deal Overview
Announced May 14, 2025, Dick’s acquired Foot Locker for $2.4B. Shareholders could choose $24 per share in cash or 0.1168 Dick’s shares per Foot Locker share.
The deal closed on September 8, following receipt of regulatory approvals, to create a $21 billion combined global sports retail leader with over 3,200 stores across 20 countries.
Post-Acquisition Leadership
Ed Stack leads Foot Locker globally, joined by Ann Freeman for North America. Key Foot Locker leaders retained, including Tony Aversa and Denise Karkos.
The company operates as a standalone business unit, preserving all major banners while aligning with Dick’s experiential and omni-channel focus.
Mary Dillon Departs Foot Locker
Mary Dillon exited Foot Locker on September 8, 2025, as Dick’s Sporting Goods completed its $2.4B acquisition. In an internal message, she said, “While today is bittersweet, I’m confident Foot Locker is in excellent hands.”
Dillon, the third woman to lead two Fortune 500 companies, exits alongside President Frank Bracken, CFO Mike Baughn, COO Elliott Rodgers, CHRO Cindy Carlisle, and the entire board—raising questions about the company’s future direction.
Combined Scale & Market Position
Following the merger, the combined company operates over 3,200 stores across North America, Europe, Asia, Australia, and New Zealand, supported by multiple e-commerce platforms. Total revenue reaches roughly $21 billion.
The merger boosts supplier leverage—especially with Nike—and solidifies the company’s position as a global leader in sports retail.
“Lace Up” Plan Progress Update
Two years in, the Lace Up plan has shown substantial progress despite shifts in acquisitions. Positive North American comp sales returned (1.4–2.6%), gross margins expanded 230–300 bps, and free cash flow is restored. Over 400 stores closed, 400+ refreshed, and 11+ Reimagined stores opened.
Digital sales rose to 21.8%, FLX Loyalty expanded, and non-Nike brands gained traction. Challenges persist internationally, and with Q1–Q2 losses, while revenue targets now shift under Dick’s Sporting Goods’ ownership.
Who Benefits And Who Loses?
Employees face 1,600–2,400 potential job losses; some corporate staff have already been cut. Mall landlords risk rent reductions or lease terminations. Communities hosting C/D malls may experience a 20–30% drop in property values, accompanied by a decline in municipal sales taxes. Suppliers like Adidas, New Balance, and Puma gain share as Nike’s influence wanes.
Consumers lose convenience in-mall experiences, especially younger shoppers. Yet dedicated sneaker fans could find richer experiences in the new off-mall stores. Will these changes satisfy loyal customers?
Why This Shift Is Historic?
Foot Locker’s 400 closures represent nearly 10% of total sales (~$950 million) and 32% of North American mall stores, marking one of the most aggressive public A/B-mall reductions ever. The pivot from 65% mall revenue in 2023 to 50% off-mall by 2026 is a structural break for a legacy U.S. sneaker chain.
This is more than closures—it’s a redefinition of sneaker retail culture. Could Foot Locker’s reinvention set a blueprint for other mall-reliant retailers?
Smart Shopping Tips for Foot Locker and Champs Fans
Take advantage of closing store sales (30–60% off) and FLX Rewards perks. Compare prices across retailers, track limited sneaker releases through the app, and stay informed about loyalty program updates under Dick’s ownership.
Plan around store closures and new Reimagined locations, keep receipts, and shop early during Black Friday, Cyber Monday, and clearance events.
The Retail Shake-Up: What It Means for Shoppers
Foot Locker’s transformation marks one of retail’s boldest pivots: 400+ mall stores have been closed, 300+ new concept and Reimagined stores have been opened, and 800 locations have been modernized.
Under Dick’s ownership, the focus shifts to experiential, off-mall destinations, loyalty perks, and digital integration. For shoppers, it’s a mix of opportunity and change—smart buying, early app alerts, and store awareness are now key.