When a sneaker giant gets a new owner, things don’t always stay the same — and that’s exactly the hint from Dick’s Sporting Goods. Following its recent multibillion‑dollar acquisition of Foot Locker, Dick’s has announced that some Foot Locker stores will close for good. But what prompted this bold move? Keep reading to discover what’s next for Foot Locker under new management.
Dick’s plans Foot Locker store closures
Just months after finalizing its takeover of Foot Locker, Dick’s Sporting Goods has announced plans to shutter some of the shoe retailer’s underperforming locations in 2026 as part of an effort to “clean out the garage.”
During the company’s third-quarter update on Tuesday, Dick’s executive chairman Ed Stack expressed enthusiasm about the deal, saying they are “incredibly excited about our acquisition of Foot Locker,” and highlighted the assembly of a “world-class management team” at the brand.
Stack added that the company is now “taking decisive actions to ‘clean out the garage’ by clearing unproductive inventory, closing underperforming stores and laying the foundation for a fresh start in 2026.” He emphasized that these steps “will position the Foot Locker Business for profitable growth.”
Speaking to CNBC on Tuesday, Stack said the company has “taken pretty aggressive markdowns to clean out old merchandise” at Foot Locker locations. He added, “It’s early on, but we’re pretty enthusiastic about what we’ve done.”
How many stores are at risk?
Dick’s has not disclosed how many Foot Locker locations might close next year. But as of this writing, the United States alone is home to over 600 Foot Locker stores, including Kids Foot Locker, Champs Sports, WSS, and the Japanese sneaker brand atmos, all under the Foot Locker umbrella. Globally, the retailer operates roughly 2,400 stores.
How Foot Locker ended up under Dick’s Sporting Goods
Foot Locker’s journey to becoming part of Dick’s Sporting Goods began with the retailer’s own turnaround efforts. In 2023, Foot Locker launched a strategy aimed at strengthening partnerships with major brands, particularly Nike, and revitalizing its store network to better connect with sneaker enthusiasts. Despite these efforts, the highly competitive sneaker and athletic retail market made growth challenging.
Seeing an opportunity, Dick’s moved to acquire Foot Locker in May 2025 for roughly $2.4 billion. The plan was to keep Foot Locker as a standalone brand while leveraging Dick’s operational expertise and resources to optimize its performance. By September 2025, the acquisition was completed.
While the success of Foot Locker’s fresh start in 2026 is unclear, the brand’s future appears to be in capable hands. Dick’s has the resources, retail expertise, and strategic vision to build on existing brand strengths while addressing operational inefficiencies. While there are challenges, including store closures and inventory optimization, the move could position Foot Locker for long-term growth and renewed relevance in a competitive sneaker market.