A well-known British sports retailer is making plans to close down 175 stores in the United States due to facing challenges in the international market. JD Sports will be shutting down 175 Hibbett stores in the US within the next three years in order to concentrate on more profitable locations.
The British retailer acquired the Alabama-based brand back in 2024 for $1.1 billion as part of its expansion strategy in the American market. Currently, Hibbett operates nearly 1,200 stores nationwide.
In recent years, JD Sports has encountered stiff competition, notably from Dick’s Sporting Goods, which acquired Foot Locker for $2.5 billion. Consequently, JD Sports has opted to streamline its operations by closing underperforming stores and redirecting its focus towards more popular locations.
The Chief Financial Officer, Dominic Platt, emphasized the company’s objective to establish “fewer, larger, and superior” stores that can drive more sales and enable increased investments in technology, store design, and enhancing the overall customer experience.
JD Sports CEO Régis Schultz pointed out that smaller stores were not delivering sufficient profits to justify their continuation. Schultz highlighted the challenges of managing smaller stores in terms of staffing and operational costs, emphasizing the leverage offered by larger stores for technology investments and operational efficiency.
Moreover, JD Sports Fashion has already closed over 20 stores in the UK. The company attributed the decline in profits to various geopolitical factors, including the situation in the Middle East.
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