Foot Locker said Wednesday it is moving its headquarters from New York City to Florida to escape the high costs of the New York state, the sneaker retailer said in a statement.
“We have decided to relocate our headquarters to St. Petersburg, Florida to better support our strategic advancements, enhance team member collaboration and achieve continued cost savings,” CEO Mary Dillon said in a statement.
The company said it would maintain limited operations in the city going forward.
Sister brand Champs was previously headquartered in St. Petersburg.
The relocation is expected to be completed by late 2025.
The city “has long been a center of gravity for Foot Locker.” Dillon told Bloomberg.“While it will be more cost-effective in the long run, we intend to remain based in New York City to maintain our connection to basketball and sneaker culture.”
St. Petersburg, a city of 250,000 people near Tampa, isn't often known as a corporate hub.
For example, Miami is home to billionaires like Ken Griffin and his hedge fund, The Citadel.
But in 2021, Cathie Wood's Ark Investment Management moved from New York to St. Petersburg.
She also purchased the naming rights to the ARK Innovation Center, a 45,000-square-foot entrepreneurial facility, for $2 million. According to St. Pete Risinga local urban development news site.
Foot Locker has a market capitalization of $2.8 billion. Its shares have fallen 4.3% so far this year.
