Dick's Sporting Goods to Close Underperforming Foot Locker Stores Following Acquisition

(Seoul=Yonhap Infomax) Jang Won Lee, Senior Reporter = Dick's Sporting Goods Inc. (NYSE: DKS), a leading U.S. sports equipment retailer, announced plans to shutter a significant number of underperforming Foot Locker stores, which it acquired for $2.4 billion (approximately 3.52 trillion won) in September.

The move is part of a broader strategy to streamline operations post-acquisition and lay the groundwork for profitable growth at Foot Locker.

According to Fox Business on the 25th (U.S. local time), Ed Stack, Chairman of Dick's Sporting Goods, stated in a press release, "We are undertaking the closure of underperforming stores and the liquidation of unproductive inventory."

Stack explained that these measures are intended to position the Foot Locker business for "profitable growth."

Dick's Sporting Goods expects to incur pre-tax costs of $500 million to $750 million related to the integration of Foot Locker, including expenses for the acquisition, consolidation, and the write-down of unproductive assets such as inventory and stores.

However, the company did not specify the exact number of Foot Locker stores slated for closure.

So far this year, nine Dick's stores, eleven Foot Locker-owned stores, and four licensed stores have been closed.

Foot Locker has faced ongoing challenges, with sales declining since 2023 and continuing into this year. Key issues include reduced store traffic, excessive inventory, and a decrease in consumer spending.

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jang73@yna.co.kr

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