Foot Locker buys startups with “high digital potential” in deals worth over $1bn

Foot Locker has splashed over $1 billion on the acquisition of two smaller footwear brands in a bid to expand its experiential store estate and target “high digital penetration”.

Foot Locker today announced the acquisition of Atmos and WSS in separate deals which total $1.1 billion.

Atmos is a premium sneaker and apparel retailer with a major foothold in Japan, seeing 39 of its 49 global stores reside in the country.

The acquisition will give Foot Locker a doorway into Japan, the world’s third largest economy and major consumer of high-end apparel, and boost it omnichannel and experiental store offering significantly.

“Atmos is uniquely positioned through its innovative retail stores, high digital penetration, and distinctive products that have made it a key influencer of youth and sneaker culture,” Foot Locker’s chief executive Richard A. Johnson said.

READ MORE: Foot Locker invests $3m in “QVC for millenials” app NTWRK

WSS meanwhile will enable Foot Locker to expand its presence across California, Texas, Arizona and Nevada where it operates nearly 100 stores.

The US retailer focuses on the large and rapidly growing Hispanic demographic, and has built “deep relationships” with its consumers through its loyalty programme with members accounting for roughly 80 per cent of sales.

“Both transactions reflect our commitment to our growth strategy and engaging with new and incremental consumers,” Johnson continued.

“With our ongoing investments in the business, we are confident in our ability to continue creating significant long-term value for our shareholders, consumers, vendor partners, and other stakeholders.”

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