JD Sports Restructuring Plans Include Closing Hibbett Stores
JD Sports, the parent company of Hibbett Sports, intends to reorganize its operations and will shutter 175 stores across the U.S. over the next three years.
In a move that signifies its growth in North America, JD Sports is set to acquire Hibbett in 2024 for an estimated $1.1 billion. This is expected to bolster JD’s foothold in the North American footwear market. To put this in perspective, as of May 2024, Hibbett operated 1,169 locations in 36 states.
This reduction in store numbers fits into a broader cost-cutting strategy for the company.
Store Closures in a Shifting Retail Landscape
JD Sports CEO Regis Schultz noted that the company aims to enhance store productivity and optimize its store presence. During a recent earnings call, he revealed that they had already closed 39 stores last year as part of this strategy. “In North America, we will use best practices to enhance the footprint and profitability of our stores,” he explained, adding that about 170 underperforming stores will be shut down in three years.
Interestingly, Hibbett’s store count dwindled from 999 at the beginning of the financial year in February 2025 to 982 by January 2026 after the merger with JD Sports.
Retail Layoffs on the Rise
The retail sector is experiencing challenges; for instance, Macy’s and other chains are among those seeing significant layoffs, which have jumped by 274% in 2025 alone.
As part of its future plans, JD’s CFO, Dominic Platt, mentioned the company aims to open about 20 new JD stores and to convert around 70 to 80 Finish Line locations into JD outlets. In a broader context, when factoring in JD’s expansion in Europe, the group’s total store count is expected to remain stable throughout the year.
As for JD Sports’ stock performance, it has dipped approximately 1.7% since the start of the year, although it has seen a modest increase of around 1.8% compared to last year.
