Champs Sports, a popular athletic clothing store, has announced plans to shut down 125 shops throughout the United States in 2024. The company began this large-scale closure by closing one store this week.
The shoe store, a subsidiary of Foot Locker, is closing its mall outlet. Customers noticed the closure signs at the store, as reported by 94.3 The Point.
This shutdown is one of 125 Foot Locker locations closing across the country, a decision made public in March 2023, according to NJ.com.
These closures are part of Foot Locker's broader plan to shut down 400 stores by 2026, shifting towards a new business strategy, as Footwear News mentioned.
The Ocean County Mall's Champs Sports, which employs about 10 people, is expected to close by Sunday, Jan. 14, a store employee informed Patch.
New Jersey is home to 17 Champs Sports stores, featuring one in the Ocean County Mall. The state also has two locations in Monmouth County, located at the Monmouth Mall in Eatontown and the Freehold Raceway Mall in Freehold, as listed on the company's official website.
Currently, it remains uncertain if any other store in New Jersey will be impacted by closures.
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Understanding Champs Sports' Toms River Store Closure
The exact reason for the Toms River Champs Sports store shutting down remains uncertain. However, Foot Locker's past statements provide some insights.
The company has revealed plans to close stores that aren't performing well, particularly those situated in malls.
Foot Locker is shifting its focus towards independent stores. These stores don't rely as much on large retailers, known as "anchor" stores, which attract shoppers to malls.
When big stores such as Macy's or JCPenney shut down, it affects smaller shops like Foot Locker and Champs Sports. These closures mean fewer people walking past and visiting these smaller stores.
Additionally, the shoe industry is facing challenges. Major brands like Nike are increasingly selling directly to customers, impacting stores like Foot Locker, as reported by The Street.
Champs Sports Faces Challenges and Competition
Champs Sports is seeing fewer of its popular brand shoes on shelves due to reduced allocations by Foot Locker. Mary Dillon, CEO and President of Foot Locker, acknowledged in an August earnings call that Champs was affected by this change.
The Toms River Champs store also faces new competition. JD Sports, a British retailer selling similar products, has recently opened in the Ocean County Mall.
It remains unclear which specific store locations will be closing next or the number of stores that have already been shut down.
2023 marked a significant year for retailers with a wave of store closures across the U.S. However, a retail expert suggested that many of these closures are strategic restructuring decisions, potentially beneficial to the economy in the long run.
Following the Covid-19 pandemic and ongoing supply chain issues, some businesses have reduced their physical store presence. Despite predictions, not all companies have shifted successfully to e-commerce.
In contrast, HomeGoods recently closed its online store, choosing to concentrate on its physical locations instead.
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