American sportswear and footwear retailer Foot Locker has announced plans to exit the South Korean market, along with several other countries, by mid-2025. This move is part of a broader strategy to streamline its operations and sharpen its focus on core markets and brands.
As part of these plans, Foot Locker will close all its physical stores and e-commerce platforms in South Korea, Denmark, Norway, and Sweden. Additionally, the company will transfer its business operations in Greece and Romania to the retail group and licensing operator Fourlis. These actions will affect a combined total of 30 stores across Asia Pacific and Europe, representing a portion of Foot Locker’s broader portfolio, which includes 140 stores in the Asia Pacific region and 629 stores in Europe.
These strategic decisions are central to Foot Locker’s ‘Lace Up Plan’, a long-term initiative aimed at simplifying the company’s business model and enhancing its focus on its most profitable banners and markets. As part of the same plan, the retailer had previously announced the closure of 400 stores by 2026. Foot Locker has also decided to wind down its Sidestep and Eastbay brands, halt its planned expansion into Japan, and end two joint ventures in Europe.
Despite these closures, Foot Locker’s presence remains substantial. As of August 3, the company operates 2,464 stores in 26 countries globally, in addition to 213 licensed stores located across the Middle East and Asia.
A notable aspect of the company’s transformation is the upcoming relocation of its global headquarters. Currently based in New York, Foot Locker will move its headquarters to St. Petersburg, Florida, in late 2024, a move intended to better support its strategic progress and future goals.
On the financial front, Foot Locker has shown some positive signs. For the second quarter of the year, the company reported a 1.9% increase in sales, reaching $1.9 billion, with comparable store sales rising by 2.6%. This marks a break from a six-quarter streak of declining comparable sales. However, the company’s net loss widened to $12 million, compared to $5 million in the same period last year. CEO Mary Dillon attributed the growth in sales to the early successes of the Lace Up Plan, which is designed to revitalize the company’s core operations and drive profitability moving forward.