JD Sports has announced plans to shut down 175 Hibbett store locations across the United States over the course of the next three years. This strategic decision follows the acquisition of Hibbett by JD Sports in 2024 for approximately $1.1 billion, which aimed to strengthen JD’s footwear market presence in North America. The current move comes as part of a broader cost-cutting and optimization strategy. Insights gathered from previous company strategies suggest that streamlining the store estate has been on the agenda for some time.
JD Sports has a history of focusing on operational efficiency and maximizing profitability. The company’s previous actions in merging brands and optimizing store locations show a consistent direction towards enhanced overall profitability. In line with this, the strategic closures align with their historical steps in market consolidation post-acquisitions. JD Sports’ plan also highlights a shift in how traditional retail models are adapting to contemporary market demands.
What Changes Are Expected?
JD Sports CEO Regis Schultz highlighted that the company’s focus is on driving store productivity and refining its property portfolio. Highlighting the company’s strategy, Schultz stated,
“Our net store movement last year was a reduction of 39 stores, demonstrating our fewer, bigger, and better store strategy.”
Consequently, the intended closure of underperforming Hibbett store locations aligns with ongoing efforts to improve efficiency.
How Will This Affect the Store Count?
Upon announcing the acquisition, Hibbett had a presence of 1,169 stores across 36 states as of May 2024, but this has since been reduced. At the beginning of fiscal year 2025, there were 999 Hibbett stores, which declined further by January 2026. The focus remains on streamlining operations.
Dominic Platt, CFO of JD Sports, revealed further expansion plans, involving opening 20 new JD stores and converting between 70 to 80 Finish Line stores into JD brand locations. By balancing store closures with strategic openings, JD aims to maintain its total store count. This approach suggests a cautious expansion while optimizing existing resources.
The restructuring of Hibbett locations happens as JD Sports competes with other market players. Competitors like Foot Locker, acquired by Dick’s Sporting Goods, are also undergoing transformations reflected in their store closure plans. These industry trends signify a shift towards consolidation in response to changing consumer behavior.
The closure plan is set against a larger backdrop of retail industry changes, observed with recent spikes in store closures and layoff rates. Companies are reevaluating physical store footprints, emphasizing profitable locations as market dynamics shift towards digital retail experiences.
JD Sports’ strategic emphasis on optimizing store productivity while modestly maintaining overall store count reflects a balanced response to current retail challenges. As companies navigate economic uncertainties and shifting consumer preferences, strategic realignment seems essential.
