Dick’s Sporting Goods plans to tighten its store network after a $2.4 billion takeover, saying it will close underperforming Foot Locker locations to sharpen profits and fuel growth. The move points to a fast reset in athletic retail as companies chase margin, simplify operations, and adapt to shifting shopper habits.
The company framed the decision as a disciplined push to cut costs, concentrate traffic, and steer investment into higher-return stores and digital channels. Timing for the closures was not disclosed, but executives signaled that portfolio pruning will begin soon and continue in phases.
“Dick’s Sporting Goods plans to close underperforming Foot Locker stores following its $2.4 billion acquisition to boost profitability and growth.”
Why the deal and closures matter now
Retailers across apparel and footwear have been trimming weaker stores and focusing on high-traffic corridors. They are also leaning into curbside pickup, ship-from-store, and smaller footprints that match neighborhood demand. Rising rents, higher wages, and price-sensitive consumers have made selective closures more common.
Footwear and athletic gear have seen uneven demand as shoppers weigh essentials against discretionary buys. A combined company can push scale benefits in sourcing, marketing, and technology. Closing weaker sites can free capital for stronger formats, e-commerce, and private-label goods, which often carry better margins.
What the company says the plan will achieve
Executives emphasized two goals: profitability and growth. Store closures are one lever in a broader plan to improve returns while protecting market share.
- Reinvest savings into top-performing stores and online fulfillment.
- Streamline overlapping locations to reduce cannibalization.
- Strengthen pricing power and inventory turns with a tighter fleet.
Analysts often view this strategy as a way to stabilize comps, improve cash flow, and support long-term investments in technology and loyalty programs. It can also simplify brand partnerships and in-store experiences.
Impact on employees, landlords, and brands
Store closures raise questions for workers and local shopping centers. The company did not detail staffing plans, but retailers in similar situations typically offer transfers where possible. Landlords could face gaps in occupancy, though strong corridors may backfill quickly.
For major brands, a leaner fleet can mean more consistent merchandising and better presentation of key products. Vendors often prefer fewer, healthier outlets to sustain full-price sell-through. That said, reduced shelf space in some trade areas may shift demand online or to rival stores.
What shoppers can expect
Customers should see a push toward refreshed assortments and improved service in surviving stores. Digital channels may gain more exclusive product drops, faster fulfillment, and easier returns. In markets where a store closes, nearby locations or online options are likely to carry the load.
Gift cards, loyalty points, and returns policies typically remain valid across banners after a merger, but shoppers should check updated terms as the integration proceeds.
Risks and what to watch
Right-sizing brings execution risk. Closing too many stores could cede foot traffic to competitors. Closing too few could drag profitability. Supply chain and IT integration also take time and money.
Key signals to monitor include:
- Same-store sales trends and inventory levels after closures begin.
- Store productivity metrics in focus markets.
- Customer satisfaction and loyalty retention during the transition.
- Pace of e-commerce growth and buy-online-pickup performance.
The bigger picture for athletic retail
The athletic sector is consolidating around fewer, stronger players with clearer value propositions. Retailers that offer convenient pickup, trusted service, and sharp pricing tend to hold share. Those that cannot keep pace with changing demand see pressure on traffic and markdowns.
If the integration proceeds smoothly, the combined company could gain negotiating leverage with vendors, improve inventory flow, and support more exclusive product stories. That could help stabilize margins and fund new store concepts tailored to local demand.
The plan to “close underperforming Foot Locker stores” signals a firm shift to quality over quantity. The success of that shift will depend on disciplined execution, transparent communication with employees and customers, and steady investment in the best-performing channels.
For now, the message is clear: the $2.4 billion deal comes with a near-term reset and a long-term bet that a tighter store base and stronger digital muscle will deliver growth. Watch for a phased closure schedule, updates to loyalty and returns, and early signs of margin improvement as the next milestones.
