JD Sports, the parent company of Hibbett Sports, announced this week that it will shutter 175 underperforming retail locations across the United States over the next three years. This sweeping reorganization follows the company’s $1.1 billion acquisition of Hibbett in 2024, a move initially intended to bolster the firm’s foothold in the North American footwear market.
Strategic Shift Toward Productivity
The decision to reduce the Hibbett footprint is part of a broader “fewer, bigger, and better” store strategy articulated by JD Sports leadership. During a recent earnings call, CEO Regis Schultz emphasized that the company is prioritizing store productivity and the optimization of its overall real estate portfolio to improve profitability.
As of May 2024, Hibbett operated 1,169 stores across 36 states. The company has already begun the consolidation process, with the store count dropping from 999 at the start of February 2025 to 982 by January 2026.
Market Context and Retail Consolidation
This move is indicative of a wider trend in the retail sector, which has seen a 274% spike in layoffs during 2025. Major retailers, including Macy’s and Joann, have similarly trimmed their physical footprints to combat shifting consumer habits and rising operational costs.
JD Sports is not merely shrinking its presence; it is reallocating capital toward higher-performing assets. CFO Dominic Platt confirmed that the company plans to open 20 new JD-branded stores while simultaneously converting 70 to 80 existing Finish Line locations into the JD banner to unify the brand identity in North America.
Implications for the Competitive Landscape
The sports retail sector remains highly volatile as giants fight for market share. Competitor Foot Locker is undergoing its own restructuring following its $2.4 billion acquisition by Dick’s Sporting Goods in September 2025, a deal that has already resulted in the closure of several Dick’s and Foot Locker-owned locations.
Industry analysts suggest that the focus on “EBIT store footprint” indicates that JD Sports is prioritizing margins over total store volume. By shedding underperforming assets, the company aims to insulate itself against economic headwinds that have pressured retail stocks, with JD Sports currently seeing a 1.7% decline in its share price year-to-date.
What to Watch Next
Investors and retail observers will be watching to see how the conversion of Finish Line stores impacts JD Sports’ revenue growth in the coming quarters. The company expects its total global store count to remain relatively flat for the current year, suggesting that the focus will remain on operational efficiency rather than aggressive expansion. Future reports will likely track whether the increased productivity of the remaining “bigger and better” stores can offset the revenue loss from the 175 closed locations.
