Massive sports retail chain suddenly closing 50 stores
The large athletic outfitter has been struggling recently.
It's probably an understatement to say that there have been better times to be a retailer than right now.
No matter which corner of the market you look at, you've probably noticed some pretty insurmountable strains that many familiar stores have been struggling under.
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Mall retailers, for example, are grappling with a steady decline of foot traffic and overall disinterest in shopping at these once-bustling hubs.
Visits to malls are still down about 6% from pre-pandemic levels. And the overall trend is far lower than the highs malls once enjoyed in the 1980s and 1990s.
It's not necessarily a cheery picture for more centrally located brick-and-mortar stores, either.
Many of these shops are smaller and lack an online presence to guard against changing trends. So when consumers prefer to shop online for their goods, these retailers are completely missing the opportunity for profit. Image source: James/SOPA Images/LightRocket via Getty Images
Retailers must adapt to the times
Even for retailers that do eventually scale up online operations, it's not all smooth sailing.
The online marketplace is filled with fierce competitors, and much of it is a race to the bottom.
More closings:
- Iconic retail chain closing nearly 500 stores
- Another discount retailer closing over 1,000 stores
- Another struggling mall retail chain closing more stores
That's because it's far easier for customers to compare prices across websites than it is to, say, visit 10 different stores in a day to find the best deal.
It means retailers must run constant promotions or sales — or keep prices near rock bottom — to remain competitive.
This, however, is a double-edged sword. Keep prices too high, and nobody will buy from you. Keep them too low, however, and you'll never turn a profit.
Sports retailer closing 50 stores
Retailers that run both online and in-person operations have a difficult balancing act.
And it's almost impossible to run both modes of business successfully. Much of it can feel like trying to hit a moving target, since customer hotspots are constantly changing, and online trends evolve even more rapidly.
JD Sports (JDDSF) is learning such a lesson.
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The massive athletic retailer, based out of England, is closing about 50 store locations as it works to consolidate underperforming stores and open up new ones in more promising areas.
"We anticipate 150 new stores and 100 conversions/relocations in [FY26]. There will also be 50 closures, mainly in Eastern Europe," the company said in a statement.
JD Sports operates a massive footprint. It has about 4,500 stores in 36 countries, and 400 of them are in the U.K.
It maintains, however, that its financial outlook is not changing and that the company is on track to report moderate growth.