Foot Locker will buy two smaller shoe store chains for a total of about US$1.1 billion in cash, the footwear retailer announced on Monday, August 2, as it looks to expand its business beyond malls and extend its reach in Asia.
The company is buying California-based WSS for US$750 million and Japanese streetwear retailer Atmos for US$360 million, it said in separate statements.
Pent-up demand for sneakers and athletic gear from US shoppers, as well as government stimulus, have boosted Foot Locker’s sales this year, but the company has stated it was looking to focus beyond malls whose traffic has been pressured by the pandemic and a surge in online shopping.
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.
WSS and Atmos will continue to operate under their own names. Both the deals, which were first reported by the Wall Street Journal, will be funded through available cash, Foot Locker stated.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
