Foot Locker (NYSE: FL), is set to buy two small shoe store chains, WSS and Japanese global retailer Atmos, for approximately USD1.1 Billion in cash. The company aims to grow and expand its business in Asia.
According to Richard A. Johnson, Chairman and Chief Executive Officer of Foot Locker, Inc., “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. With atmos, we are executing against our expansion initiative in the rapidly growing Asia-Pacific market, establishing a critical entry point in Japan and benefitting from immediate scale. We are thrilled to bring atmos into our portfolio of brands and build on the strong foundation of this differentiated business.”
Furthermore, WSS will add value through its “differentiated market position and complementary customer base and real estate portfolio.” WSS will keep its current name and will function as a new banner in its portfolio, according to Foot Locker.
“WSS has built a successful, high-growth business by pioneering the neighborhood-based store model, built on community engagement and a full-family offering. This acquisition enhances our product mix and provides access to a customer base and store footprint that are both differentiated from and complementary to our current portfolio,” Johnson said in a statement.
High demand for sneakers and athletic merchandise in the U.S. as well as the government stimulus have incremented Foot Locker’s sales throughout 2021. However, the company has revealed it strives to expand beyond malls, which have been negatively impacted by the pandemic, and move more into the online realm.
Both transactions are expected to close in Q3 of 2021.