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Is Foot Locker Inc. broke?
While we don’t know the answer to that it certainly seems that way as CNBC is reporting that Dick’s Sporting Goods is purchasing the sports retailing stable for a cool $2.4 billion in a shocking move that has many sneaker aficionados scratching their heads. Why would Dick’s Sporting Goods go this route? Why would Foot Locker Inc. throw in the towel this far into the game? How will this affect sneaker raffles and resale prices?
While there are many questions to be answered behind this surprising market move, according to CNBC, Dick’s Sporting Goods decided to buy out the competition to expand their global presence and corner the Nike market. That being said, Trump’s announcement of his idiotic tariffs didn’t help the struggling sneaker game. Foot Locker CEO Mary Dillon saw an opportunity to lighten her load as everyone knows that tumultuous times are ahead for the sneaker market.
Per CNBC:
In a joint press release, Dillon said the acquisition is a “testament” to all of the work her and her team have done to improve the business.
“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.
The CEO added she was “confident this transaction represents the best path for our shareholders and other stakeholders.”
At the end of the day it’s all about the money and investments made by the higher ups.
While many people assumed that Foot Locker was the bigger brand compared to Dick’s Sporting Goods, it actually turns out that DSG raked in $13.44 billion in their last fiscal year compared to Foot Locker’s $7.99 billion. Who would’ve guessed?
Still, this is cause for celebration for the good people over at Dick’s Sporting Goods as they see nothing but good times ahead:
“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,” said Dick’s CEO Lauren Hobart. “Sports and sports culture continue to be incredibly powerful, and with this acquisition, we’ll create a new global platform that serves those ever evolving needs through iconic concepts consumers know and love, enhanced store designs and omnichannel experiences, as well as a product mix that appeals to our different customer bases.”
Should be interesting to see how this affects sneaker raffles and stock numbers per store going forward.
What do y’all think about Dicks Sporting Goods purchasing Foot Locker? Let us know in the comments section below.
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Whether you’re copping or boycotting, the adidas Yeezy restocks have been a massive success for the three-stripe brand as they’ve been moving inventory like hotcakes. But when Foot Locker was offered the chance to partake in the sales bonanza, they passed.
According to Complex, the higher ups at Foot Locker wanted no parts of the Yeezy restock happening over the last few weeks for fear of backlash from people who called out adidas for continuing to do business with Kanye West after his antisemitic rants. While there really hasn’t been outcry over the restock due to adidas promising to donate some of the profits to anti-hate charities, Foot Locker wasn’t taking any chances in today’s cancel culture climate and turned down the opportunity to rake in some big money.
Complex reports:
Sneaker industry sources tell Complex that Foot Locker had originally planned to take on stock of Yeezys but later decided against it. Foot Locker, the sources say, was afraid of the backlash that selling shoes associated with West, who now goes by Ye, could generate. The retailer also ran into difficulties trying to integrate a charity aspect into its sale of Yeezys, sources said.
Foot Locker did not respond to multiple requests for comment and Adidas did not provide a comment.
Even when word spread that adidas was planning on selling off its remaining inventory, there wasn’t much backlash, if any, following the announcement. We’re lowkey surprised that Foot Locker was too scared to carry the merchandise, but it is what it is.
The news comes on the heels of adidas confirming that once they’re done selling off their remaining inventory of Yeezy merchandise, they’ll never restock or sell any Yeezy silhouette again. With that being said, you know sneakerheads and collectors will be gobbling up any remaining Yeezy drops that adidas has going forward. The proof is in the pudding as adidas has bagged hundreds of millions of dollars with their Yeezy restocks.
Still, Foot Locker is standing by the statement they released last year at the height of the controversy and isn’t interested in generating any kind of backlash regardless of the amount of money that’s on the table.
More from Complex:
“Foot Locker, Inc. does not tolerate any form of antisemitism, or hateful and discriminatory behavior,” a spokesperson said then. “While we remain a partner with Adidas and carry a wide assortment of their collections, we will not be supporting any future Yeezy product drops, and we have instructed our retail operators to pull any existing product from our shelves and digital sites.”
What do y’all think? Sound off in the comments section below.
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Getting your hands on a coveted pair of sneakers is about to get a lot tougher as Foot Locker is expected to close up shop at hundred of their mall spots in the near future.
Sneakernews is reporting that Foot Locker is planning on shutting down up to 400 brick and mortar stores by 2026 as online shopping has been the preferred method of purchasing merchandise by customers for the past few years. The stores expected to close their doors will be those located in malls and those that are “underperforming” and replacing them with a new “format” going forward. What that will look like is anyone’s guess but we’re interested in seeing what exactly they have in mind for Foot Locker’s future.
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According to Crain’s Detroit Business reporter Jay Davis, Foot Locker has already begun this initiative, shuttering sites at the Lakeside Mall and Eastland Mall before opening a large-scale store across the street.
What’s more, Foot Locker will continue to cultivate their partnership with Nike, the company’s “largest brand partner” according to CEO Mary Dillon. Dillon adds that her and the team have “spent a great deal of time with Nike revitalizing [their] partnership,” with results expected to be seen by the Holiday Season.
And to think not too long ago there were rumors that Nike would be pulling their merchandise from Foot Locker in order to cut out the middle man and sell their products directly to consumers for a bigger profit margin. Now that we know that’s not the case, Foot Locker is looking to reboot their business practices and attempting to court a younger and more diverse base of customers as they expect sales to drop 3.5% to 5.5% in 2023.
Still, we’ve seen the effect that online shopping has had on brick-and-mortar stores for the past decade as more and more businesses are calling it quits and leaving once thriving commercial avenues looking like ghost towns.
Still, Foot Locker will still have 2400 stores operating after their plan is fully executed so there will still be plenty of raffles and L’s to go around come 2026.
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Written By Alvin aqua Blanco , Director of Content Posted 36 mins ago @aqua174 Alvin aqua Blanco is the Director of Content in the Men’s Division for iOne Digital, steering Cassius Life and Hip-Hop Wired. Representing the Bronx, he was nurtured by a steady diet of Hip-Hop culture and music. He graduated from the University […]
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