Foot Locker is buying WSS and Atmos, two smaller retailers, for a total of approximately $1.1 billion in separate cash deals www.wsj.com/articles/foot-locker-to-buy-two-retailers-for-1-1-billion-11627898400?st=2d7npyjvf6mc6ty&reflink=desktopwebshare_twitter via @WSJ
Foot Locker announced this morning that it has acquired Japanese streetwear brand Atmos and athletic shoe retailer WSS for more than $1 billion. $FL
02 August, 2021 - 09:30am
Today, Foot Locker Inc. announced that it had finalized two separate deals that would further expand its business in North America while granting it access into the Asia-Pacific region: the New York-based speciality athletic retailer purchased WSS and atmos for $750 million and $360 million, respectively.
While the move will allow the sportswear conglomerate to further tap into the Latinx-consumer base in the United States (specifically in California, Texas, Arizona and Nevada), it arrives just two months after it decided to close the majority of its remaining Footaction stores for economic and strategic reasons. WSS has a fleet of 93 off-mall spaces across the West and South West U.S., and epitomizes the “neighborhood-based store” model; according to an official press release about the acquisition, “approximately 80% of [WSS’] sales [come] from customers who are members of its loyalty program,” a number that surely enticed Foot Locker Inc.’s leadership team. Community engagement and full-family product offerings have been crucial to to former-Eurostar, Inc. retailer, which won’t be tampered with under the $750 million acquisition as WSS will operate under the same name.
Lauded for its importance in expanding the Air Jordan series beyond North America and its special edition Nike Air Max propositions, atmos has been a staple within the sneaker space since being founded in 2000. Although Hidefumi Hommyo’s operation has grown to 49 stores globally, it’s presence is largest in Japan. The 39 “brick-and-mortar” locations currently on the Far East Asian island serve as new prospects for Foot Locker Inc., which had been slowly getting into the Asia-Pacific region. Additionally, atmos has been successful in the digital space, with over 60% of its revenue from fiscal year 2020 arriving through those channels.
“Both transactions,” said Chairman and Chief Executive Officer of Foot Locker, Inc., Richard A. Johnson, “reflect our commitment to our growth strategy and engaging with new and incremental consumers. 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.”
In other sneaker news, the fragment x Travis Scott x Air Jordan 1 Low OG is set to launch on August 13th.
02 August, 2021 - 08:12am
Based in California, WSS has nearly 100 stores in its home state, Texas, Arizona and Nevada. Atmos has dozens of locations in Japan.
WSS has a significant Hispanic customer base and atmos is popular for carrying special edition footwear from major shoe companies like Nike.
"The acquisition of atmos will accelerate Foot Locker's global reach with a highly strategic foothold in Japan," Foot Locker said in a statement.
The WSS stores are located away from shopping malls, which have been heavily impacted by the COVID-19 pandemic.
Foot Locker has more than 3,000 stories in 28 countries.
02 August, 2021 - 06:40am
Foot Locker will buy two smaller shoe store chains for a total of about $1.1 billion in cash, the footwear retailer said on Monday as it looks to expand its business beyond malls and extend its reach in Asia.
The company is buying California-based WSS for $750 million and Japanese streetwear retailer Atmos for $360 million, it said in separate statements.
Pent-up demand for sneakers and athletic gear from U.S. shoppers, as well as government stimulus, have boosted Foot Locker's sales this year, but the company has said 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 Inc.
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 said.
Evercore served as financial adviser to Foot Locker on both the deals, while RW Baird advised WSS.
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