Foot Locker will buy two smaller shoe store chains for a total of about $1.1 billion in cash as it looks to extend its reach in Asia.
Source: Foot Locker to buy two shoe store chains for $1.1 billion
Ran across an article on LinkedIn from podcaster Izzy Lugo stating that FootLocker was buying Atmos and WSS. In a recent article, I explained the following:
FootLocker is closing Footaction. That chain was considered a more urban version of FootLocker. The chain carries more apparel and is typically situated in malls where the cash customer carries the revenue…FootLocker is placing itself into a position to recoup a considerable amount of money as they close Footaction. Of all of the bigger chains, they are the only company that hasn’t added an urban retail chain to their coffers.
One of the Most Important Investments In the Sneaker Industry Went Unnoticed
The quotes above were in reference to Jimmy Jazz selling to FootLocker. This hasn’t happened, but consider this, JD Sports purchased Finish Line, Shoe Palace, DTLR and Villa. FootLocker has made heavy investment into startups, but nothing to offset the growth of JD in the U.S. The purchase of Atmos and WSS is akin to acquiring DTLR/Villa and Shoe Palace. FootLocker doesn’t have its Finish Line acquisition. I still predict that Jimmy Jazz is next especially since the retail outlet matches the qualities that made WSS and Atmos attractive. Jimmy Jazz tends to be located in standalone real estate. That’s critical as the U.S. will undoubtedly face more issues with pandemics in the future and Hibbett Sports has proven that retailers outside of malls fare better than those in malls. That sounds simple, but it’s true.
