Foot Locker is closing 110 stores as the retail apocalypse rages on (FL)

pulse

March 2, 2018 9:06 PM

Foot Locker announced on Friday that it plans to close approximately 110 stores in 2018.

The retailer
has been a
"The disruption that has characterized the retail industry recently is not going away,"

Foot Locker is closing more stores in 2018.

The retailer plans to close approximately 110 stores this year, the company announced on Friday. It will additionally open about 40 new stores.

"We continue to prune the fleet of under-productive stores and open a few select, high-profile stores," CFO Lauren Peters said in a call with investors on Friday.

Foot Locker closed 147 stores globally in 2017. The retailer also opened 94 new locations, bringing the retailer's store count to 3,310 around the world.

"The disruption that has characterized the retail industry recently is not going away," Foot Locker's CEO Richard Johnson said on Friday. "Consumers want experiences, they want cool products, and they want it all — fast."

Johnson said that Foot Locker was working to reduce its exposure to "deteriorating" malls, as the retailer worked to rebuild its business and win back customers.

Foot Locker has struggled in recent years. As mall traffic has declined, Foot Locker and other mall-centric brands have struggled to keep locations open, especially as anchors like Sears and Macy's have shuttered locations.

At the same time, e-commerce traffic has exploded, allowing customers to buy brands like Nike directly from the company or from online competitors such as Amazon. In August 2017, UBS analyst Michael Binetti downgraded Foot Locker, saying it is "almost certain" that the sneaker retailer will lose market share to Amazon.

On Friday, the company reported a net loss of $49 million, or 40 cents per share, in the fourth quarter. Shares of the company's stock dropped more than 13% following earnings on Friday morning.

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