Foot Locker business transformation in San Francisco, US by Chin Hei Leung / SOPA Images
Foot Locker, the US-based footwear retailer, is undergoing a transformation in Asia as it looks to simplify its business model and focus on core regions and banners. As part of this, Foot Locker will be closing both its eCommerce and brick-and-mortar stores in Hong Kong and Macau, while converting all of its current owned and self-operated stores and eCommerce in Singapore and Malaysia to a license model.
Foot Locker's fourth quarter 2022 results revealed that the company is taking a series of actions to streamline its business model and focus on core regions and banners. The closure of stores in Hong Kong and Macau is part of this strategy. Meanwhile, the company will convert its operations in Singapore and Malaysia to a license model, with Indonesia's lifestyle retailer, MAP Active, taking over the company's store and eCommerce operations in these countries.
Foot Locker currently operates 2714 stores in 29 markets and has 159 franchised stores in the Middle East and Asia. The closure of stores in Hong Kong and Macau, and the conversion of operations in Singapore and Malaysia to a license model, is part of the company's wider business transformation in Asia. In the US, Foot Locker is also closing underperforming stores in shopping malls as part of a "reset" strategy. This strategy will simplify the company's business model and allow it to focus on core regions and banners as it seeks to increase its annual turnover by $1 billion to $9.5 billion by 2026.
You must be logged in to use lightbox functionality