Foot Locker is rewriting its playbook, closing roughly 400 mall-based stores by 2026 in a significant shakeup of its North American footprint. The decision, part of its “Lace Up” strategy announced in March 2023, reflects the iconic sneaker retailer’s response to declining foot traffic and shifting consumer habits. “2023 was a reset year,” said then-CEO Mary Dillon, acknowledging the costs of store closures while preparing for future growth.
With more than 300 new concept stores opening, Foot Locker is betting on experiential shopping and off-mall destinations. Here’s what’s happening as the company navigates this historic transformation.
A New Blueprint for Sneaker Retail
Founded in 1974, Foot Locker now operates over 2,700 stores worldwide under banners including Foot Locker, Kids Foot Locker, Champs Sports, WSS, and atmos. The “Lace Up” plan rests on four pillars: expanding sneaker culture, reshaping the store portfolio, deepening customer loyalty, and building best-in-class omnichannel capabilities.
The strategy targets sneaker enthusiasts as well as performance, casual, and premium lifestyle consumers. Partnerships with Nike are being revitalized, while non-Nike brands aim to make up over 40% of sales by 2026. Exclusive products are projected to grow from 15% to 25% of revenue, expanding appeal across diverse customer interests.
Each store banner now serves a unique purpose, from Kids Foot Locker to WSS for Hispanic communities, while new concept stores will increase overall retail square footage by 10% despite mall closures.
Digital Growth and Customer Loyalty
Foot Locker is investing heavily in digital platforms and omnichannel fulfillment. By late 2024, digital sales had climbed from 17% to 21.8% of total revenue, with nearly all stores offering Buy Online, Pick Up In Store (BOPIS) and real-time inventory tracking. Omnichannel shoppers spend three to four times more than single-channel buyers, highlighting the importance of integrated experiences.
The FLX loyalty program is evolving into a data-driven ecosystem, providing expanded rewards, exclusive product access, and personalized experiences. Pilots in Canada and the U.S. aim to boost loyalty-driven sales from 25% to 50% by 2026. Advanced analytics and AI tools guide recommendations and predictive search, enhancing the customer journey and deepening engagement.
Why the Mall Exit Matters
Foot Locker’s retreat from malls reflects broader trends in retail. Mall foot traffic remains significantly below pre-pandemic levels, with some urban areas experiencing a 16% decline and others approaching a 40% drop. In a 2023 CNBC interview, Dillon noted that consumers have become more “choiceful” about where and how they shop. Nike’s shift to direct-to-consumer sales has reduced its share of Foot Locker business from 70% in 2021 to an expected 55–60% by 2026.
Closures primarily focus on North American malls, with exits also occurring in Asia and Europe. At the same time, new off-mall stores and reimagined flagship locations are expanding globally. By the end of 2025, 800 stores will have been refreshed, emphasizing experiential shopping and digital integration. This pivot highlights how retail strategies are adapting to long-term shifts in consumer behavior.
A Global Merger Reshapes the Landscape
In May 2025, Dick’s Sporting Goods announced a $2.4 billion acquisition of Foot Locker, finalized in September. The combined company operates over 3,200 stores across 20 countries, with Ed Stack leading Foot Locker globally and Ann Freeman overseeing North America. Foot Locker continues as a standalone business unit, preserving its major banners while aligning with Dick’s focus on experiential retail and omnichannel growth.
Mary Dillon left the company following the acquisition, expressing confidence in Foot Locker’s future. The merger signals a new chapter, combining global scale with local innovation. Under Dick’s ownership, the company is well-positioned to strengthen loyalty programs, expand digital integration, and enhance in-store experiences for both sneaker enthusiasts and casual shoppers.
Community Impact and Industry Implications
Store closures will affect employees across hundreds of locations, though specific numbers remain undisclosed. Mall landlords face reduced rents or terminated leases, while communities with lower-tier malls may see economic repercussions. Suppliers like Adidas, New Balance, and Puma could gain market share as Foot Locker diversifies beyond Nike.
For consumers, the loss of mall convenience is offset by immersive off-mall stores featuring exclusive drops, community events, and enhanced services. Industry experts note that Foot Locker’s pivot mirrors global trends, with retailers in Europe and Asia also moving toward experiential formats. The pandemic accelerated these shifts, fundamentally reshaping expectations around convenience, experience, and digital integration in retail.
Looking Ahead: Stakes and Opportunities
Foot Locker’s transformation is among the boldest in recent retail history, as it has closed over 400 mall stores, opened more than 300 new concepts, and modernized 800 locations. Under Dick’s Sporting Goods, the focus is on experiential destinations, loyalty perks, and integrated digital shopping. The stakes are high for employees, communities, mall landlords, and the sneaker industry globally.
The company’s success could set a precedent for other mall-dependent brands navigating a rapidly changing retail landscape. By blending off-mall experiences, digital growth, and loyalty-driven engagement, Foot Locker is redefining its role in the sports retail industry. How the company balances consumer expectations, profitability, and community impact will influence the future of experiential retail worldwide.