Sep 3, 2024
Global retail giant Foot Locker has long called New York City its corporate home. But now, it’s set to relocate its headquarters.
In the company’s latest earnings report, CEO Mary Dillon announced that, “to better support our strategic progress, to increase team member collaboration, as well as ongoing expense discipline, we made the decision to relocate our headquarters to St. Petersburg, Florida in 2025.”
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It’s a big move — St. Petersburg and the Big Apple are more than 1,000 miles apart.
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During an interview with Bloomberg, Dillon noted the move is financially strategic, remarking that “there are cost efficiencies over time” associated with the relocation.
A town of 260,000
Located near Tampa, St. Petersburg has a population of around 261,000. Dillon highlighted that Foot Locker already has “a meaningful executive and commercial presence” in the region.
She revealed plans for expanding the company’s footprint in St. Petersburg while maintaining only “a limited presence” in New York City.
Dillon also noted the move would not necessitate the relocation of its workforce, expressing confidence that the company will “attract or retain” great talent.
St. Petersburg Mayor Kenneth T. Welch emphasized the economic benefits, noting that the arrival of this Fortune 500 company is expected to create more than 150 new jobs in the city.
While St. Petersburg is not traditionally known for having a large corporate presence, it has attracted more than just Foot Locker.
In 2021, Ark Invest announced its decision to move its office from New York City to St. Petersburg. The company completed this transition in 2022.
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Cathie Wood, founder and CEO of Ark Invest, praised the Tampa Bay area for its talent, innovative spirit and quality of life, stating that those factors are likely to propel the company’s growth initiatives.
“ARK is not a traditional Wall Street asset management firm, and we are looking forward to breaking the mold further by relocating to St. Petersburg, a city investing in technology, science, and innovation,” Wood said in a statement.
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Sunshine State’s allure
For those tired of the traffic congestion, harsh winters, and shoveling snow in New York, the appeal of Florida is undeniable.
Picture the sunny streets lined with swaying palm trees and a consistently warm breeze — a stark contrast to the urban grind.
Florida has become a magnet for affluent snowbirds escaping the Empire State.
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A 2024 report from financial technology company SmartAsset found that in the 2021-2022 tax year, Florida saw a net influx of nearly 30,000 high-earners — defined as those making $200,000 or more annually. That was more than any state in the study.
In contrast, California and New York experienced the most significant outflows, losing 24,670 and 12,040 high-income households, respectively.
One of the ultra-high earners who moved to Florida from New York was billionaire activist investor Carl Icahn. The 88-year-old was born in New York City and had run his business from the city for decades. He relocated his office to Sunny Isles Beach, Florida in 2020.
This influx of wealthy new residents is boosting Florida's economic profile by injecting substantial capital into the state.
According to the Florida Chamber of Commerce’s 2023 Florida Business & Economic Mid-Year report, new residents have infused a total of $39.2 billion of net income into the Sunshine State in just one year. Of this amount, $9.8 billion came from New York alone — more than any other state.
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Jing is an investment reporter for Moneywise. He is an avid advocate of investing for passive income. Despite the ups and downs he’s been through with the markets, Jing believes that you can generate a steadily increasing income stream by investing in high quality companies.
