Foot Locker is latest chain to close stores nationwide with more than 400 shops to close by 2026

• Foot Locker will close 420 stores in the US over the next three years
• The closures would allow the company to introduce new store concepts

Foot Locker is the latest chain to close stores across the country, with the company planning to close more than 400 of its underperforming stores by 2026.

The 420 stores scheduled to close across the United States account for nearly 10 percent of Foot Locker’s total sales.

Foot Locker said the closures would allow the company to introduce new store concepts and add £1billion to the company’s annual sales.

It comes as America braces for a mass exodus of retail stores across the country this year, with more than 800 stores from Walmart, Gap, Bed Bath & Beyond set to close.

Companies have been forced into desperate cost-cutting measures in the face of runaway inflation and falling profits.

Foot Locker said the more than 400 store closures would allow the company to focus on better-performing stores across North America as part of its “Lace Up” business plan.

The plan, unveiled to executives Monday at an investor day in New York City, sees Foot Locker opening new freestanding stores that appeal to younger customers and those obsessed with sneakers.

The company aims to open hundreds of the new concept stores — from about 120 to more than 400 stores by 2026, said Tony Aversa, Foot Locker’s senior vice president of store development.

CEO Mary Dillon told Axios that Foot Locker is “reviving” its partnership with Nike as the companies share a “common vision of the future market that aligns with growth plans and key strategic areas like basketball, kids and sneaker culture.”

Foot Locker has approximately 1,300 mall stores in North America, and the company expects to close 25 percent of its stores in A- and B-rated malls and 50 percent of its stores in C- and D-rated malls, Business Insider reports.

The company’s goal is to grow its annual sales by $1 billion to $9.5 billion by 2026.

It comes as Foot Locker on Monday reported $19 million in fiscal fourth-quarter earnings.

The New York-based company said it was earning 20 cents per share. Earnings adjusted for impairment and one-time costs were 97 cents per share.

The results beat Wall Street’s expectations. The average estimate from nine analysts polled by Zacks Investment Research was earnings of 52 cents a share.

Meanwhile, the shoe business made $2.34 billion in sales during that period, also beating Street’s forecast of $2.15 billion.

For the year, the company reported earnings of $342 million, or $3.58 per share, while reported revenue of $8.76 billion.

“Our team closed the year on a great note with strong fourth quarter results, which benefited from robust holiday demand and a compelling assortment and inventory position from our brand partners,” said Dillon.

“We enter 2023 with a focus on realigning the business – simplifying our operations and investing in our core flags and capabilities to position the company for growth in 2024 and beyond.”

She continued, “We are proud of Foot Locker’s role in influencing and serving the global sneaker community and next year we will be celebrating 50 years of the iconic Foot Locker brand.”

The move comes after homewares giant Bed Bath & Beyond announced last month it was closing hundreds of stores.

The retailer once owned more than 1,500 stores across America, but a recent purge aims to end the year at just 480.

The company endured a turbulent few months leading up to its latest decision, including massive losses, the death of its CEO and an activist investor who sold a huge stake in the company.

At least 416 of its US stores have been identified for closure, while all 65 stores in Canada are also scheduled to close.

Although the company had 953 stores across North America just a year ago, by the end of 2023 there will be just 360 Bed Bath & Beyond flagship stores in America, alongside 120 Buybuy Baby stores.

The state that will be hit the hardest is California, where 35 stores will close while Florida will lose 21, New York will lose 23 and Illinois will lose 18.

Second on the list of stores looking to close is Tuesday Morning, which is closing more than half of its locations in a desperate bid to survive bankruptcy.

The housewares company is closing 265 stores as it struggles to survive in what will be the second wave of store closures in three years.

The massive restructuring comes as the chain filed for Chapter 11 bankruptcy this month, meaning it is now forced to close its least profitable stores.

These have fallen notably in California, where 30 stores will be closed, Florida, where 23 will be lost, and Texas, where 19 will lose.

Other states expected to have major closures include Virginia at 10, Georgia at 12 and Colorado at 14.

Up to 74 Gap stores are also set to close in 2023, after the parent company closed four of its Banana Republic stores earlier this year.

The massive closures come after the company announced two years ago that it would close around 350 stores by the end of 2023.

And while most of the damage has already been done, having closed 276 stores since the announcement, 74 remain ready for the chopping block.

While the company doesn’t have an exact list of where the closures would take place, if stores for the past two years do close, California will be hit hardest, having already lost 30 stores.

Meanwhile, Party City is also expected to be downsized, with 12 locations currently up for auction nationwide.

The store is another big brand facing bankruptcy. Another 10 stores will close during February as the company tries to stay afloat.

The state set to lose the most Party City locations is New York with five, closely followed by Michigan with four.

Also on the list are West Virginia, Missouri and Georgia with two each, while Iowa, Illinois, Louisiana, New Jersey, Oklahoma, Oregon and Texas all lose one.

Walmart is among the most prominent brands looking to reduce its high street presence this year as well.

The iconic retailer is closing five major department stores and its last two remaining pickup-only locations, citing poor revenue.

Walmart’s closures come after the store routinely closes a handful of stores across the country each year, with this year’s states being Illinois, Wisconsin, New Mexico, Florida and Arkansas.

Big Lots is also closing seven stores this year, with the discount chain looking to target small towns and move away from urban areas.

In California, three locations will close while Colorado will lose four.

Macy’s, a mall staple, is closing four stores in the first quarter of 2023, with malls in California, Colorado, Hawaii and Maryland lagging behind.

The closures are part of Macy’s three-year plan to close 125 locations.

Another store that will have to close a handful of locations is The RealReal, which will close four stores and two consignment offices across the country to reduce costs by $2 million.

And after closing over 150 stores since 2020, JCPenney also plans to close its locations in Oswego, New York and Elkhart, Indiana this year.

Rounding out the list is Amazon, which has announced it will be closing several of its Fresh grocery and Go convenience stores.

The online retail giant is also pausing its planned expansion while it reassesses its in-store strategy as many of the biggest US brands are also grappling with an economic slowdown.