Are there Foot Locker layoffs? Foot Locker announced layoffs as the company set a goal to save 18 million US dollars annually. Foot Locker did not disclose how many employees have been affected in the layoff round.
According to reports, Foot Locker targeted an unspecified number of employees involved in corporate and support roles this year. It is because the company wants to focus better on its core businesses. Due to this, the retailer is winding down its Sidestep banner in Europe.
Let’s review the circumstances leading to the layoffs at Foot Locker this year. This blog post will walk you through almost everything related to Foot Locker, including What Foot Locker is Closing and Why? How many employees does it have? Why Foot Locker’s stock is going down and many more.
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Has Foot Locker Laid Off Employees?
Foot Locker has planned to lay off as the company wanted to simplify the business. According to the company’s CEO, Mary Dillon, “The company focuses on omnichannel operations and plans to simplify the business.” This strategic plan of the company was announced in November 2022. Later, layoffs also became a part of the strategy. The retailer reduced the number of global banners, including dwindling two joint European operations.
Moreover, in June 2022, BSN SPORTS acquired Foot Locker’s school-focused Eastbay Team Sales Division.
To separate Foot Locker’s commercial functions from its supply chain and IT businesses. Many members, including executives, were promoted or hired new executives. At the same time, Andrew Page, the company’s CFO, confirmed his departure at the end of the year. Andrew Page and other members, including Andrew Gray, also departed from the company. Still, many changes are about to be made.
Companies focusing on bolstering the bottom line against economic slowdown and inflation are now reducing their headcount. Below, you can check a few of the other companies that announced layoffs recently:
- Wayfair – Wayfair aims to boost agility, due to which it announced layoffs this year. In the layoff round, it laid off nearly 10 percent of its workforce globally. It counts 1,750 workers.
- Saks.com – The company announced laying off nearly 5 percent of its workforce. It counts 100 job cuts.
- H&M – The company cut around 1,500 jobs to boost efficiency as a part of a global cost-cutting effort of around 193 million US dollars.
To thrive, it’s business. The company partnered with Nike. This way, Foot Locker features more LeBron James and Kevin Durant retro shoes in the holiday season.
To rejuvenate its business, Foot Locker announced layoffs and collaborated with Nike. Besides Nike, Foot Locker partnered with numerous retailers when struggling with modern economic challenges. In March, it was announced that Swoosh’s third quarter revenues boosted by 14 percent year over year.
Why Is Foot Locker’s Stock Going Down?
Foot Locker’s stock is going down for the quarter. Reportedly, the company’s stock dropped by 27 percent after a massive decline in sales by 11.4 percent.
In Q1 2023, Foot Locker’s total sales were around 1.92 billion US dollars. While a year ago, the sales were 2.17 billion US dollars. As of April 2023, the net income was around 36 million US dollars. At the same time, it was around 132 million US dollars last year in the same period. It indicates a massive decline in sales and net income of the company this year.
Dillon confirmed the main reason for the sharp decline in Foot Locker’s sales. She attributed “A tough macroeconomic slowdown as the primary reason. That forced the company to decline product prices. So, the company will also be able to manage inventory and drive demand.”
What Foot Locker Is Closing?
Two big retail chains have announced to close around 800 of their stores, i.e., Bed Bath & Beyond and Foot Locker. In March 2023, Foot Locker announced plans to shut down its US-based retail stores. An announcement revealed that the company will close around 400 stores by the end of 2026 across the United States. It will also close another 125 retail stores that its subsidiary, Champs Sports, runs.
Foot Locker unveiled its plan to open 250 new “concept” retail stores aItis aart of the company’s “Lace Up” sales strategy. These new stores will target locations in communities drawn to sneaker culture.
Two retail giants, i.e., Foot Locker and Bed Bath & Beyond, decided to close their 800 stores combined, 400 stores each. But the case is different as other retailers have lined up to acquire Bed Bath & Beyond stores because there is a lot of parking space in front of the strip mall.
But no retailer was there to take over Foot Locker’s store. So it closed 400 stores in middle and lower-tier regional enclosed malls throughout the US. Moreover, retail landlords ordered those spaces to be empty for some time. The future of these spaces matters as they are responsible for many things. They impact jobs, the tax base, and the overall economic conditions in the US.
At the start of the year, Foot Locker announced that it would shut down 200 stores in low-performing A and B malls. At the same time, 200 stores located in class C and D malls are announced to be closed in the future.
Retail property owner Federal Realty’s senior vice president, Jeff Kreshak, stated, “There is no solution for some Foot Locker locations that are set to be closed.”
They also added, ” They have a lot of space. But we are losing now. As no mall is there to help.”
These closings are planned to be just the latest blow to US regional malls. During the second half of the 20th century, Regional malls were built to cater to a growing number of Americans who left cities for the suburbs.
Why Is the Foot Locker Closing?
The primary reason behind their closure was low sales, unable to meet customers’ demand, and market trends. One company’s spaces were filled. At the same time, some were empty and remained vacant all the time. They were more likely to be zombie stores.
When it comes to the success of Foot Locker, Inc., several key factors have contributed to the athletic retail industry for its prominence and sustained growth.
The retailer offers a wide range of premium brands and products. It provides an extensive selection of premium athletic footwear, accessories, and apparel from the best brands. This is why Foot Locker is one of the most successful retailers in the athletic retail industry.
According to reports, during the first quarter of the year, the vacancy rate for class B and C malls was 10.8 percent, while the vacancy rate for class A malls was 6.6 percent. Finding tenants for 400 vacant spaces at Foot Locker will be challenging for the company. The main reason is that big retailers never want to rent and stay in the weaker malls.
Brandon Svec, the national director of US retail analytics at CoStar, commented. He said, “In the underperforming malls in areas that are not prime shopping corridors, we have continuously seen a slowdown.” They added, ” it is tough to attract national brands for mall owners. This is one of the major reasons for closing 400 Foot Locker stores.”
How Many Employees Does Foot Locker Have?
Foot Locker Inc. is an American Multinational Corporation founded in Midtown Manhattan, New York City. It was founded in 1974. Foot Locker operates 36,000 apparel and athletic footwear retail stores in 29 countries across Europe, Asia, Australia, New Zealand, and North America.
As of January 28, 2023, Foot Locker had nearly 15,200 employees with full-time employment. This is roughly double the number of part-time employees globally.
Foot Locker is a publicly traded company that sells various athletic footwear, apparel, and accessories from multiple brands, including Puma, Jordan, Under Armour, Nike, Adidas, and several more. Besides, it operates multiple e-commerce websites also.
Foot Locker’s success soared, and it recognized the diverse preferences of its consumers. It added additional banners and concepts to meet consumers’ demands, including Kids Foot Locker, Footaction, Lady Foot Locker, Champs Sports, etc. This strategy helps the company engage with customers across various demographics and maintain a strong market presence.
The Bottom Line
Foot Locker laid off an undisclosed number of employees this year as the company has closed many stores. Because for Foot Locker and other similar stores, it becomes harder for the mall to survive, and they go dark. Similar stores like Victoria’s Secret, Gap, and a few more have recently shut down hundreds of their stores in malls. Foot Locker’s store locations are considered destination points for sports enthusiasts, fashion-conscious individuals, and athletes. It serves as a leading retailer of athletic footwear and apparel.
Besides, the company has strong relations with leading sportswear manufacturers. This strong bond helps the company to offer an expanded range of products to meet customers’ needs and preferences. Suppose you are looking for high-performance gear sneakers of the latest trend. Then this could be a great option that one should opt for!