Quick Hit:

Foot Locker is moving its headquarters from New York to St. Petersburg, Florida, by late 2025. The retailer aims to build on its existing presence in Florida, reduce costs, and foster team collaboration as part of its broader strategic plan.

Key Details:

• Foot Locker will establish its new headquarters in St. Petersburg, Florida, by late 2025, enhancing its existing commercial and executive presence in the city.
• CEO Mary Dillon emphasized that the move would support the company’s strategic initiatives and provide financial benefits, with no required relocation for current employees.
• The decision follows similar corporate relocations from New York, including Icahn Capital Management in 2020 and ARK Investment Management in 2021.

Diving Deeper:

Foot Locker announced that it will relocate its corporate headquarters from New York City to St. Petersburg, Florida, by late 2025. 

According to CEO Mary Dillon, the decision to relocate was influenced by Foot Locker’s significant presence in St. Petersburg, which previously served as the headquarters of Champs Sporting Goods. "We have a large concentration of folks there already, and we think it’s a great place for us to continue to grow and do business and continue to attract top talent," Dillon said, underscoring the city’s appeal for future expansion.

The company’s decision not to require employees to relocate demonstrates a commitment to maintaining workforce stability, despite the major shift in its corporate base. Dillon highlighted that Foot Locker’s New York City presence would be "limited" moving forward.

The headquarters relocation is part of Foot Locker’s "Lace Up Plan," launched in March. This strategic initiative aims to drive the company’s growth through various measures, including new store formats, a shift away from mall locations, a revamped loyalty program, and an increased emphasis on digital engagement. 

In addition to the headquarters move, Foot Locker is set to open a Global Technology Services Hub in Dallas, Texas, next month. This separate initiative is intended to support the company’s modernization of its technology infrastructure, further demonstrating Foot Locker’s commitment to leveraging technology as a key growth driver.

Foot Locker joins a growing list of companies leaving New York in favor of more business-friendly states. The company’s market capitalization stood at approximately $2.79 billion following the announcement, reflecting its ongoing efforts to adapt and thrive in a competitive retail environment.