JD Sports is planning to close approximately 175 Hibbett stores across the United States over the next three years as part of a strategy to concentrate on fewer, more profitable locations. The British retailer acquired Hibbett, an Alabama-based sporting goods chain, for about $1.1 billion in 2024 to accelerate its expansion in North America and strengthen its position in the rapidly growing sneaker and sportswear market. At the time of the acquisition, Hibbett operated nearly 1,200 stores across the US, with a strong presence in smaller Southeast markets.
Challenges and Competition
Since the acquisition, JD Sports has faced increased competition, particularly from Dick's Sporting Goods, which purchased Foot Locker for $2.5 billion and has seen success with its larger, experience-focused House of Sport stores, according to CoStar. Roughly two years after the deal, JD Sports is reevaluating its approach by reducing the number of underperforming smaller stores and focusing on stronger locations.
Strategy Shift
Company executives have stated that the goal is to build 'fewer, bigger, and better' stores that generate higher sales and allow for greater investment in technology, store design, and customer experience. CFO Dominic Platt explained during an earnings call on Thursday, as reported by CoStar, 'In terms of last year, you saw we closed 39 stores overall. We will see the beginning of the closure of the stores in North America with Hibbett, 175 stores probably over around three years.'
CEO Régis Schultz added that while smaller stores can achieve strong sales relative to their size, they often do not generate sufficient profit to remain open. 'The problem of our small stores is that you need someone to open, you need someone to close,' Schultz said on the call. 'When sales are going down a little bit, you have no leverage, whereas with a larger store, you have leverage because you can invest in technology and all that stuff.'
Current Store Count
JD Sports has already begun trimming and reshaping the Hibbett store base. According to WWD, the number of locations dropped from 999 at the start of fiscal 2026 to 982 by year-end, following a mix of closures and new openings. The company intends to continue this trend, focusing on higher-performing stores to drive growth and profitability.
