You've probably seen the plywood boards or the "Everything Must Go" signs at your local mall lately. It’s a weird vibe. For decades, Foot Locker was the undisputed king of the suburban shopping center, the place where you’d line up at 6:00 AM for a pair of Jordans or just hang out to see what was dropping. But the news about Foot Locker stores closing across North America isn't just a sign of the "retail apocalypse." Honestly, it’s a calculated, multi-year pivot that is changing how we buy sneakers entirely.
Mary Dillon, the CEO who took over after a legendary run at Ulta Beauty, basically laid it all out. The company is shuttering about 400 underperforming stores by 2026. If that sounds like a lot, it is. But there’s a nuance here that most people miss. They aren't retreating from the market; they’re retreating from the mall.
The "Lace Up" Strategy and Why Your Mall Store Is Gone
The retail landscape shifted under our feet while we were all looking at our phones. Foot Locker’s "Lace Up" plan is the internal roadmap for this massive transition. Essentially, they realized that the classic mall model—small, cramped stores with high rent and dwindling foot traffic—just doesn't work for the modern sneakerhead.
They’re killing off the weak links. Specifically, they are closing roughly 200 "lower-performing" stores in declining malls and another 200 that were part of the Eastbay or Footaction brands they’ve been phasing out. It’s a pruning process. You can’t grow a healthy tree if half the branches are dead weight, right?
Instead of those 1,500-square-foot mall spots, they are pouring money into "Power Stores." These are massive, standalone locations—often 10,000 square feet or more—that actually feel like a destination. Think community hubs with activation spaces, local art, and way more inventory than your local mall could ever dream of holding. They want you to drive to a Foot Locker because you want to be there, not because you happened to be walking past it on your way to the food court.
Dealing With the Nike Elephant in the Room
We have to talk about Nike. For years, Foot Locker was basically a Nike showroom. At one point, Nike products made up about 70% to 75% of Foot Locker’s entire inventory. That’s a dangerous amount of eggs in one basket.
When Nike decided to go "Direct-to-Consumer" (DTC), they started pulling back. They wanted shoppers to buy from the Nike app or Nike.com, not a middleman. This sent Foot Locker’s stock into a tailspin a couple of years ago. People thought it was the end.
But things have gotten... interesting lately. Nike’s DTC push hit a bit of a ceiling. They realized they still need wholesale partners to reach the "everyday" athlete and the suburban shopper. So, while Foot Locker stores closing is happening in some areas, the relationship with Nike is actually stabilizing. However, Foot Locker isn't taking chances anymore.
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They are diversifying like crazy. Look at the shelves now. You’ll see a massive increase in:
- New Balance: Which has had an incredible run lately with the 2002R and 550 models.
- Asics and Hoka: Tapping into the "dad shoe" and performance running trends that are dominating lifestyle fashion.
- On Running: The Swiss brand that seems to be everywhere suddenly.
- Anta and Way of Wade: Bringing in international basketball flavor.
By 2026, the goal is for non-Nike sales to make up a much larger chunk of the business. This variety is actually better for us, the consumers. It forces Foot Locker to be a curator again, rather than just a Nike outlet.
The Reality of the "Closing" Locations
It’s not just random. The stores disappearing are mostly the ones in "Class C" and "Class D" malls. If your local mall has a leaking roof and three vacant department stores, your Foot Locker is probably toast.
Business analysts like those at Williams-Sonoma or UBS have pointed out that retail is polarizing. Premium malls (Class A) are doing better than ever. Low-end malls are dying. Foot Locker is simply moving its chips to the winning table.
They are also experimenting with different "banners." You might see more "Kids Foot Locker" standalone stores. Parents hate dragging kids through a giant mall just for school shoes. A standalone store in a strip center with easy parking? That’s a win.
What This Means for Sneaker Releases
If you’re a collector, the Foot Locker stores closing situation changes the "cop" dynamic. The days of "first come, first served" at a mall gate are basically dead.
Everything is moving to the FLX Membership program. They are using the store closures to fund a massive digital overhaul. They want their app to be as seamless as SNKRS or Confirmed. The "Power Stores" will become the primary hubs for in-person pickups, while the smaller mall footprints that remain will act more like "express" nodes.
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The Economic Side of the Coin
Let's get real about the money. Running a store in a mall is incredibly expensive. You’ve got the base rent, but then you’ve got "Common Area Maintenance" (CAM) fees, marketing funds for the mall, and restrictive hours. By moving "off-mall," Foot Locker gets more control. They can stay open later, host events in the parking lot, and usually pay less per square foot for a larger space.
It’s a margin play.
In their 2023 and 2024 earnings calls, the leadership team was very transparent: they expect these closures to actually increase profitability by 2026. They are cutting the cord on stores that were barely breaking even and reinvesting that capital into loyalty programs and better inventory tech.
Is This the End of Foot Locker?
Hardly.
It’s a metamorphosis. It feels like an ending because the 1990s version of the mall is finally gasping its last breath. But Foot Locker is actually one of the few legacy retailers that seems to have a real plan. They aren't pulling a Blockbuster. They are leaning into the fact that sneaker culture is now "culture" full-stop—it’s not a niche hobby anymore.
They are aiming for $9.5 billion in annual revenue by the end of 2026. You don't hit those numbers by disappearing. You hit them by being where the customers actually are. And right now, the customers are on their phones or at "lifestyle centers" where they can park right in front of the store.
What You Should Do Next
If you’re a regular shopper, don't panic, but do adapt. The way you interact with the brand is shifting.
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1. Check your FLX points immediately. With stores closing and systems updating, make sure your loyalty account is active and your email is current. These points are going to be the only way to get "heat" at the new Power Stores.
2. Scout your nearest "Power Store" or Community location.
Don't wait for your local mall spot to vanish. Find the nearest large-format Foot Locker. These locations get better inventory, more exclusive colorways, and more frequent restocks than the dying mall units.
3. Watch the "Off-Mall" expansion.
If a Foot Locker closes in your mall, look at the nearby shopping plazas—the ones with a Target or a Whole Foods. Chances are, a new-concept Foot Locker will pop up there within 18 months.
4. Diversify your brand knowledge.
Since Foot Locker is moving away from being 70%+ Nike, start looking at their New Balance and Hoka arrivals. The "Lace Up" strategy means they’ll be pushing these brands hard with exclusive "only at Foot Locker" collaborations.
The retail world is messy right now. Seeing a store you grew up with close its doors sucks, honestly. It feels like a piece of childhood is being deleted. But in the case of Foot Locker, it's less of a funeral and more of a move to a much bigger, better house. The sneakers aren't going anywhere; they’re just moving to a place where they actually have room to breathe.
Next Steps for Consumers: Download the Foot Locker app and use the "Store Locator" tool. Filter for "Power Stores" to see where the company is actually investing. If your closest store isn't a Power Store or a "Community" hub, start planning for its eventual replacement or closure by shifting your "in-store pickup" preferences to the larger regional hubs.
Business Insight: Watch the Q4 2025 earnings report. This will be the bellwether for whether the "Lace Up" strategy is hitting its mark. If comparable store sales in the new "off-mall" formats are up by double digits, the pivot is successful, and we may see even more mall exits than originally forecasted.