The sports retail submarket is experiencing a major shift as Dick’s Sporting Goods Inc. (NYSE: DKS) announced its $2.4 billion acquisition of Foot Locker Inc. (NYSE: FL).
Dick’s expects to operate Foot Locker as a standalone business unit within its portfolio and maintain the Foot Locker brands; the acquisition announcement was not accompanied by news of potential store closings. In a statement, the company said its acquisition will enable it to “serve consumers not only in new locations in the US through Foot Locker’s complementary real estate portfolio, but also internationally for the first time.”
Foot Locker encompasses approximately 2,400 retail stores across 20 countries in North America, Europe, Asia, Australia and New Zealand, and a licensed store presence in Europe, the Middle East and Asia. Dick’s operates 850 stores under the Dick’s Sporting Goods, Golf Galaxy, Public Lands and Going Going Gone! Brands.
“We have long admired the cultural significance and brand equity that Foot Locker and its dedicated Stripers have built within the communities they serve,” said Ed Stack, executive chairman of DICK’S. “We believe there is meaningful opportunity for growth ahead. By applying our operational expertise to this iconic business, we see a clear path to further unlocking growth and enhancing Foot Locker’s position in the industry. Together, we will leverage the complementary strengths of both organizations to better serve the broad and evolving needs of global sports retail consumers.”
“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 Lauren Hobart, president and CEO of DICK’S. “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.”
