Dick’s Sporting Goods To Buy Foot Locker In $2.4 Billion Deal
Thanks to the ever-changing and growing sneaker market, one giant is being scooped up by an even larger one.
CNBC reports that Dicks Sporting Goods is buying its rival Foot Locker for $2.4 billion.
Dicks only exists in the United States, so company executives think the purchase will expand it globally since Foot Locker operates in 22 countries.
However, they don’t expect to make any major changes to the more than 2,400 stores, since the name will stay the same, operate separately from Dicks with plans for Foot Locker Kids, WSS, Champs and atmos to go untouched as well.
Dick’s CEO Lauren Hobart says that most shoppers won’t even know that they’ve joined forces and it doesn’t matter if they do. More importantly she wants them to know that the company is “making sure that there’s two powerful brands that are meeting all consumer needs, wherever, whenever, however they want to shop.”
In a joint statement, Foot Locker CEO Mary Dillon believes the acquisition is a great marriage of the two companies, helping Foot Locker continue to be one of the most important mega-chain footwear stores to sneaker heads.
“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 Dillon.
Nike also had an opinion on the deal since both Dick’s and Foot Locker are among its biggest wholesale buyers, and them linking up helps them dominate even more. Nike CEO Elliott Hill agrees, saying in a statement that “Each has their own loyal consumer following and deep understanding of the needs of athletes. I am confident that together, they will help elevate sport and continue to accelerate the growth of our industry.”
However, the business deal does present some weariness, and Foot Locker’s eagerness to be scooped up could stem from the hundreds of stores it promised to close in 2023. At the time, Foot Locker said it’d shutter around 400 mall-based shops by 2026 and aim to attract more sneakerheads and younger buyers in general as it neared its 50th anniversary. Its stock has also dropped 41% this year.
More problems could be presented as President Trump’s tariffs still loom, but the move could help because they’ll now have more leverage.
The news is only the latest seven-figure agreement in sneakers, as investment firm 3G Capital recently purchased Skechers for over $9 billion.
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