US footwear retailer Foot Locker is to withdraw from Hong Kong and Macau and convert all of its self-operated stores in Singapore and Malaysia to a licensed model.
Foot Locker’s distributor in Indonesia and the Philippines, MAP Active, will take over the brand’s operations in Singapore and Malaysia – including e-commerce sites – in a move the footwear giant says will further grow its presence in Southeast Asia.
Foot Locker entered the Philippines late last year, opening one of the biggest stores in Asia at Manila’s Glorietta shopping mall. Earlier this year, the brand was reported to be in talks with Indian footwear company Metro brands to expand into India.
The company said the move is part of its efforts to “simplify its business model and focus on core banners and regions”. Meanwhile, Foot Locker will continue to operate stores in South Korea.
As of January 28, Foot Locker operated 2714 stores in 29 markets and has 159 franchised stores in the Middle East and Asia.
Foot Locker said it will shut more than 400 underperforming stores in US shopping malls as part of a “reset” strategy. The company closed 101 stores during the fourth quarter of last year.
“We are entering 2023 with a focus on resetting the business – simplifying our operations and investing in our core banners and capabilities to position the company for growth in 2024 and beyond,” said Mary Dillon, president and CEO of Foot Locker.
Foot Locker’s sales were down by 0.3 per cent year on year to $2.334 billion during the fourth quarter. The company expects to increase its annual turnover by $1 billion to $9.5 billion by 2026.