A well-known UK sports retailer plans to shut down 175 stores in the United States due to challenges faced in the international market. JD Sports will be closing 175 Hibbett stores in the US over the next three years to concentrate on more lucrative locations. The British retailer acquired the Alabama-based brand in 2024 for $1.1 billion as part of its expansion strategy in the US. 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. The company has now opted to streamline its operations by closing underperforming stores and redirecting focus towards more popular locations.
CFO Dominic Platt emphasized the aim to establish “fewer, bigger, and better” stores to drive higher sales and facilitate increased investments in technology, store design, and overall customer satisfaction. JD Sports closed a total of 39 stores last year and anticipates the gradual closure of 175 Hibbett stores in North America over the next three years.
JD Sports CEO Régis Schultz pointed out that smaller stores were not delivering sufficient profits to justify their continuation. Schultz highlighted the challenges with smaller stores in terms of operational costs and leverage, noting that larger stores allow for more substantial investments in technology and other aspects.
Additionally, JD Sports Fashion has already closed more than 20 of its stores in the UK. Following the closures in the UK, the sports retailer attributed its impacted profits to geopolitical factors, including the situation in the Middle East.