The franchise “Foot Action” has experienced financial losses leading Foot Locker to consider closing most stores in the United States.

Foot Locker Inc. has had a strong start to the fiscal year, thanks to a store repositioning strategy and consolidating the majority of owned Footaction stores. In the first quarter, the brand saw profits increase by about 80% and announced in the financial report that it plans to convert about one-third of its Footaction stores into “other forms” throughout the year to focus growth on the flagship franchise. As part of the strategy, Foot Locker intends to permanently close most of the remaining Footaction stores as their lease contracts expire over the next two years, believing this strategic decision will allow them to better serve their consumers in a post-COVID market.

Foot Locker, which did not provide guidance for the full year, ended the fiscal period with cash and equivalents totaling $1.96 billion, while debt on the balance sheet was $109 million. The company stated it had invested $51 million in store fleet, digital platforms, supply chain, logistics, and other infrastructure.

Regarding the relocation of staff and employees, nothing has been mentioned yet. Hopefully, this will not worsen the already challenging post-pandemic job situation.