According to the Wall Street Journal, DICK'S Sporting Goods began talks to acquire Foot Locker in a deal valued at approximately $2.3 billion earlier in the year. On Thursday, May. 15, both institutions announced a successful acquisition, signaling a major shift in the footwear industry’s competitive landscape.
"We look forward to welcoming Foot Locker's talented team and building upon their expertise and passion for their business, which we intend to honor and amplify together," shared Lauren Hobart, President and CEO of DICK'S, in a press release.
Both companies have been exploring ways to adapt to a rapidly-changing retail environment, with DICK'S focusing heavily on expanding its in-house brands and experiential store formats. Foot Locker has been recalibrating its strategy following key supplier shifts—most notably its evolving relationship with Nike.
The deal marks a strategic opportunity for DICK'S to bolster its market share in athletic footwear and urban retail locations, while potentially leveraging Foot Locker’s brand recognition and international presence. Currently, DICK'S plans to operate all brands under the Foot Locker, Inc. umbrella as standalone business units; this includes approximately 2,400 retail locations for Foot Locker, Kids Foot Locker, Champs Sports, WSS, and atmos across 20 countries
"By joining forces with DICK'S, Foot Locker will be even better positioned to expand sneaker culture, elevate the omnichannel experience for our customers and brand partners, and enhance our position in the industry," said Mary Dillon, CEO of Foot Locker.
If DICK'S plans to operate the Foot Locker, Inc. family of brands as a standalone business unit, the experience for consumers shouldn't be impacted, however, that could eventually change. In any case, head over to FootLocker.com and DICKSSportingGoods.com right now to shop New Arrivals.
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