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Foot Locker to exit HK and Macau markets, restructures ops in SG and MY

Foot Locker to exit HK and Macau markets, restructures ops in SG and MY

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U.S. footwear retailer Foot Locker will be closing its stores and eCommerce business in Hong Kong and Macau as part of its business transformation in Asia. It will also convert its current owned and operated stores and eCommerce in Singapore and Malaysia to a license model.

This comes as Foot Locker president and CEO Mary Dillon said the company is entering 2023 with a focus on resetting the business, "This means simplifying our operations and investing in our core banners and capabilities to position the company for growth in 2024 and beyond," said Dillon.

According to Foot Locker’s fourth quarter 2022 results, the company will be taking a series of actions to simplify its business model and focus on core banners and regions including closing both its eCommerce and brick-and-mortar stores in Hong Kong and Macau. Dillon previously revealed in a public event that the company 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. 

Meanwhile, the retailer will also be converting all of its current owned and self-operated stores and eCommerce in Singapore and Malaysia to a license model. MAP Active, Indonesia's lifestyle retailer, who already partnered with Foot Locker in Indonesia and the Philippines, will take over the company's store and eCommerce operations in Singapore and Malaysia, and seek to grow in those markets and new markets in the region over time.

It will also continue to operate stores in South Korea and continuing to pursue growth in the region through license partners.

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A check by MARKETING-INTERACTIVE saw on Foot Locker’s official website that, there are currently six stores in Hong Kong, including Tsim Sha Tsui, Mong Kok, Kowloon Bay, Sha Tin, Yuen Long and Tuen Mun, as well as two stores in Macau.

In a conversation with MARKETING-INTERACTIVE, Foot Locker Hong Kong declined to comment on the matter.

On the other hand, the company has also introduced a "Lace Up" plan with a new set of strategic imperatives and financial objectives, according to Dillon. "We are proud of Foot Locker's role in influencing and serving the global sneaker community, and next year, we will celebrate the 50th anniversary of the iconic Foot Locker brand," she added.

The "Lace Up" plan will be guided by a set of new strategic imperatives for fiscal years 2024 through 2026, including expanding sneaker culture, power up the portfolio, deepen its relationship with customers and improve omnichannel. The company also plans to re-launch the Foot Locker brand, and transform the company's real estate footprint by opening new formats, shifting off-mall, and closing underperforming stores.

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Foot Locker’s sales were down by 0.3% year on year to US$2.334bn during the fourth quarter last year. The company expects to increase its annual turnover by US$1bn to US$9.5bn by 2026. 

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