A BELOVED sporting goods retailer is making a serious move this year.
While the decision will offer a new variety of merchandise for consumers, it could also mean fewer discounts.
A popular sporting goods retailer is making a $2.4 billion move (stock image)Getty Images GettyDick’s Sporting Goods is buying out a top competitor (stock image)[/caption]Earlier this month, Dick’s Sporting Goods confirmed that it plans to purchase Foot Locker in a news release.
Foot Locker has been around since the 1970s, currently operating around 700 locations nationwide.
Dick’s broke onto the scene in 1947 and has over 750 stores.
The acquisition is valued at $2.4 billion, with Dick’s noting that it plans to keep Foot Locker as a stand-alone business within its portfolio.
That means the Foot Locker name would stay and operate as a separate entity, along with Foot Locker Kids, Champs, WSS, and others, per CNBC.
Dick’s CEO Lauren Hobart even noted on a phone call with investors recently that some consumers “may or may not know that Dick’s and Foot Locker are one” after the acquisition.
“The combination of them for the consumer is not the most important thing, it’s making sure that there are two powerful brands that are meeting all consumer needs, wherever, whenever, however they want to shop,” Hobart emphasized.
Shoppers are also set to see top sneaker offerings with the deal.
Nike, in specific, has Dick’s and Foot Locker among their top wholesale partners.
While this could mean new selection in shoes, it could also mean fewer opportunities for sales.
The acquisition has yet to be finalized and has sparked some anti-competition concerns, but Hobart said the companies are “not expecting any regulatory concerns” with the Federal Trade Commission (FTC).
Foot Locker CEO Mary Dillon also noted in the joint release that the acquisition would benefit its customers.
“By joining forces with Dick’s, Foot Locker will be even better positioned to expand sneaker culture, elevate the omnichannel experience for our customers and brand partners, and enhance our position in the industry,” Dillion said.
Foot Locker has been struggling in recent years.
“The combination of them for the consumer is not the most important thing, it’s making sure that there are two powerful brands that are meeting all consumer needs, wherever, whenever, however they want to shop,”
Lauren HobartCEO of Dick's Sporting GoodsBATTLING BACK
So far in 2025, the company’s shares have been down by 41%, although the merger announcement saw it soar by 80%.
In 2023, executives had confirmed 400 store closures for Foot Locker across the country by the end of next year.
These were all underperforming locations that Dillon said were necessary to cut for simplifying the company’s approach.
Plans were also in place to open 280 new locations.
Hobart said some Foot Locker stores may continue to shutter with the merger, which could be finalized as soon as the end of 2025.
HOUSE OF SPORT
Dick’s, on the other hand, has still been growing steady, and is still focused on its House of Sport concept that it’s been testing since 2021.
The House of Sport concept stores include batting cages, putting greens, golf simulators, and rock-climbing walls.
During a September earnings call, it was noted that Dick’s wants 100 new House of Sport locations by 2027.
Hobart said the concept was “redefining sports retail.”
She also noted that mall bosses were telling the company that the current House of Sport locations were drawing in foot traffic.
A few significant acquisitions by other companies have been announced or completed recently.
Capital One, for example, recently finalized its longstanding deal to acquire Discover.
Cable and home internet provider Spectrum is also merging with a major competitor in a $34.5 billion deal.
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