American sportswear and footwear retailer Foot Locker will exit South Korea and several other markets by mid-2025 as part of the plans to simplify its business model.
The company has announced the planned closures of all stores and e-commerce operations in South Korea, Denmark, Norway, and Sweden. The retailer will also transfer its operations in Greece and Romania to retail group and licensing operator Fourlis.
These actions will affect 30 stores of the company’s 140 stores in Asia Pacific and 629 stores in Europe.
The decisions are part of the ‘Lace Up Plan’ and ongoing efforts to simplify its business model and focus on core banners and regions.
The retailer previously announced it would shutter 400 stores by 2026, wind down its Sidestep and Eastbay businesses, ditch a planned expansion into Japan and shutter two European joint ventures. As of August 3, the company operated 2464 stores in 26 countries, as well as 213 licensed stores in the Middle East and Asia.
In addition, the company will move its global headquarters from New York to St Petersburg, Florida in late next year to “further support strategic progress”.
The news came as Foot Locker reported a 1.9 per cent uplift in sales to $1.9 billion for the second quarter, with comparable sales also up 2.6 per cent. However, its net loss widened to $12 million from $5 million last year.
The growth in comparable sales ended the six-quarter streak of decline, with CEO Mary Dillon attributing this to the ongoing Lace Up Plan.
