Foot Locker to Acquire a Pair of Shoe Store Chains for $1.1B
Foot Locker will buy two smaller shoe store chains for a total of about $1.1 billion in cash, the footwear retailer said on Monday as it looks to expand its business beyond malls and extend its reach in Asia. The company is buying California-based WSS for $750 million and Japanese streetwear retailer Atmos for $360 million, it said in separate statements. WSS has a fleet of 93 off-mall stores across California, Texas, Arizona and Nevada, and has a largely Hispanic consumer base which Foot Locker is looking to tap into. Atmos, which has most of its 49 stores in Japan, is popular for its collection of special edition footwear in collaboration with brands including Nike.
Total Retail's Take: Given the pressures mall-based retailers have felt, both before and during the pandemic, it stands to reason that companies such as Foot Locker would seek to diversify their storefront portfolios. By acquiring WSS and Atmos, Foot Locker obtains both storefront and geographic diversity. The retailer also will look to leverage WSS's connection to Hispanic customers to grow its penetration into that key buyer demographic. Lastly, strengthening ties to leading brands such as Nike figures to benefit Foot Locker's prospects going forward, especially as brands look to scale back on their wholesale partnerships and sell more product direct to consumer.