Foot Locker’s $1.1 Billion Acquisition Binge – WWD

Foot Locker Inc. is making a $1.1 billion post-pandemic play — leaping into the ultra-hip Japanese sneakerhead scene with a deal to amass Atmos and tapping into the rising U.S. Latine market by scooping up WSS.

Whereas the pandemic isn’t over, retailers of all stripes have retooled over the previous yr and a half and are actually positioning for what comes subsequent. 

In Foot Locker’s case, that clearly means pulling out its pockets for some high-level, all-cash dealmaking supposed to verify the corporate retains evolving with the market.  

Richard Johnson, chairman, president and chief government officer of Foot Locker, stated: “The best way younger individuals reside their norms, values and attitudes has been the driving drive behind the evolving retail panorama. And we’re targeted on zeroing in on this key a part of our trade. Guaranteeing that Foot Locker is a spot younger individuals search out for inspiration and empowerment will give us an important hyperlink to remaining culturally related and staying forward of the curve in a sneaker ecosystem.”

The $360 million deal to purchase Atmos brings the corporate to the world of premium style sneakers

Atmos gross sales tallied $175 million final yr with greater than 60 % of the take coming by the net. The corporate additionally has 49 shops, together with 39 in Japan, the place it was based. 

Johnson stated: “Atmos is uniquely positioned by its modern retail shops, high-digital penetration and distinctive merchandise which have made it a key influencer of youth and sneaker tradition. With Atmos, we’re executing in opposition to our enlargement initiative within the quickly rising Asia Pacific market, establishing a vital entry level in Japan and benefitting from rapid scale.”

The corporate’s founder, Hidefumi Hommyo, and the remainder of the Atmos group are becoming a member of Foot Locker. 

Hommyo stated, “Atmos was based in 2000 as a small retail retailer within the again streets of Ura-Harajuku. Our ardour for sneaker tradition and talent to attach with our prospects have been the driving forces of our progress ever since. Importantly, Foot Locker shares this ardour, and we’re excited to hitch forces with them to propel Atmos into our subsequent part of progress.”

In a separate deal, Foot Locker signed a definitive settlement to amass Eurostar Inc., WSS’ father or mother, for $750 million. The corporate has 93 off-mall shops focusing on Latine customers throughout California, Texas, Arizona and Nevada. 

Johnson famous in an announcement that: “WSS has constructed a profitable, high-growth enterprise by pioneering the neighborhood-based retailer mannequin, constructed on neighborhood engagement and a full-family providing. This acquisition enhances our product combine and gives entry to a buyer base and retailer footprint which can be each differentiated from and complementary to our present portfolio.” 

 

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https://wwd.com/business-news/monetary/foot-locker-acquisition-atmos-wss-premium-sneakers-latinx-1234891998/ | Foot Locker’s $1.1 Billion Acquisition Binge – WWD

Huynh Nguyen

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