Six months after completing its $2.5 billion takeover, Dick’s Sporting Goods has moved into the “integration phase” of Foot Locker. The shift includes targeted layoffs, relocation requests, and a firm return-to-office mandate to centralize operations in New York and Florida.
The integration of Foot Locker into the Dick’s Sporting Goods portfolio has entered a new, more aggressive phase. On March 23, 2026, the company reportedly began a series of workforce reductions and structural changes aimed at eliminating “back-of-house” redundancies in departments such as HR and sourcing.
Centralization and the RTO Mandate
In a reversal of previous remote-work trends, Dick’s has issued a “return to office” (RTO) mandate for Foot Locker staff. Operations are being consolidated at the New York headquarters and the Champs Sports hubs in Florida. This follows the November decision to scrap Foot Locker’s previously planned relocation of its global headquarters to St. Petersburg, Florida. Employees not based in these core hubs are reportedly being asked to relocate or face exit packages.
“Cleaning the Garage”
The layoffs are part of what Executive Chairman Edward Stack previously described as a “clean out the garage” strategy. Since the acquisition closed last September, Dick’s has focused on:
- Inventory Management: Clearing unproductive stock to prepare for a “fresh start” in the 2026 fiscal year.
- Store Rationalization: While initially expecting mass closures, Stack noted in the March 12 earnings call that the final number of shuttered locations will be “much smaller” than projected.
- The “Fast Break” Pilot: Learnings from an 11-store experimental format are currently being scaled across the Foot Locker banner to improve storytelling and “edit” the product assortment.
Strategic Outlook for 2026
Despite the current friction of layoffs, market analysts suggest the integration is progressing ahead of schedule. Dick’s has set ambitious targets for the Foot Locker banner in 2026, projecting comparable sales growth of 1 to 3 percent and operating income between $100 million and $150 million.
The company expects a significant “inflection point” starting with the 2026 back-to-school season, betting that a leaner corporate structure and cleaned-up inventory will allow the banner to successfully “play offense” against competitors in the specialty sneaker market.
