Foot Locker (NYSE: FL) is working on a turnaround plan to improve its business. Called "Lace Up," it has reasonable goals, including an expanded and better relationship with customers, better financial performance, and improved integration between physical and digital platforms. One of the key ways the company plans to achieve these goals is through a drastic repositioning of its stores. There are risks to consider, however, along with the hoped-for rebound in performance.

Before getting into the turnaround effort, which is still in its early days, investors need to understand the difficult backdrop that Foot Locker is facing right now. In the first quarter of 2023, the retailer's sales declined 11.4%. The company operated 2,815 stores and franchised 148 stores (in the Middle East and Asia) in the first quarter of 2022, but had just 2,692 stores with 163 franchise locations in the same quarter of 2023, so the drop in sales makes some sense.

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Source Fool.com