Foot Locker Cuts Corporate Staff, Closing Sidestep Banner

Foot Locker is making cuts to its staff and store fleet as it looks to trim costs under new leadership. The footwear retailer on Thursday announced that it would eliminate an undisclosed number of “corporate and support roles,” which the company expects to account for about $18 million in cost savings on an annualized basis starting in fiscal 2023. The retailer is also closing its call center in Oshkosh, Wisc., according to a WARN notice filed earlier this week. Foot Locker is also winding down its Sidestep banner in Europe, which accounts for about 80 stores, the company said in the Thursday SEC filing. The move is consistent with the company’s efforts to focus on its core banners. Foot Locker also closed up its Eastbay banner last month as it consolidates the Eastbay.com retail website into the Champs Sports banner.

Total Retail's Take: Foot Locker's new CEO Mary Dillon is taking difficult but likely necessary actions to control costs at the company, which has been challenged by Nike's decision to cut back on the assortment of sneakers it sells through the retailer. And like other retailers, Foot Locker is taking a cautious approach to 2023 planning amid economic uncertainty, opting to cut costs in preparation for a potential sales slowdown. In addition to taking a hard look at costs, Dillon is seeking to streamline the organization, evidenced by the consolidation of the Eastbay and Champs Sports banners; build out its omnichannel capabilities to leverage the strengths and capabilities of its physical store footprint; grow and improve its FLX loyalty program; and upgrade its technology infrastructure.