JD Sports is planning to close about 175 Hibbett stores across the United States over the next three years as part of a strategic shift to concentrate on fewer, higher-performing locations. The British retailer, which acquired the Alabama-based sporting goods chain for approximately $1.1 billion in 2024, aims to streamline its North American operations and bolster its position in the competitive sneaker and sportswear market.
Acquisition and Market Challenges
At the time of the acquisition, Hibbett operated nearly 1,200 stores across the U.S., with a strong presence in smaller Southeastern markets. However, since then, JD Sports has faced intensifying competition, particularly from Dick's Sporting Goods, which acquired Foot Locker for $2.5 billion and has seen success with its larger, experience-oriented House of Sport stores, according to CoStar.
Strategic Shift to Fewer, Bigger Stores
Approximately two years after the acquisition, JD Sports is reworking its approach by reducing the number of smaller, underperforming stores and focusing on stronger locations. Company leaders have articulated a vision of building “fewer, bigger, and better” stores that generate higher sales and allow for greater investment in technology, store design, and customer experience. CFO Dominic Platt outlined the plan during an earnings call on Thursday, stating: "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 elaborated on the rationale behind the closures, explaining that while smaller stores can achieve strong sales relative to their size, they often fail to generate sufficient profit to justify their operation. "The problem of our small stores is that you need someone to open, you need someone to close," Schultz said during 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."
Store Base Reduction Underway
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 the end of the year, reflecting a combination of closures and new openings. The company expects the closure program to continue over the next three years, ultimately reducing the footprint by about 175 stores.
