Dick’s Sporting Goods is reportedly close to finalizing a significant acquisition deal for Foot Locker, valued at approximately $2.3 billion. According to the Wall Street Journal, discussions have centered around a price of $24 per share, nearly double Foot Locker’s current trading price. The deal could potentially be wrapped up as soon as Thursday, May 15th.
Foot Locker, a leading global retailer specializing in athletic footwear, has a long-standing history since its establishment in 1974. With a presence in more than 40 countries and around 2,000 stores with over 46,000 employees as of 2023, the company has faced challenges recently, including a 6% decline in revenue year-over-year and the closure of 20% of its stores since 2019. Market analysts anticipate that Foot Locker may further reduce its physical footprint by about 4% or around 110 stores by 2025.
In contrast, Dick’s Sporting Goods, founded in 1948 by Richard Stack in Binghamton, NY, has experienced growth, boasting over 700 locations as of 2024 and holding the title of the largest sports retail chain in the U.S. This prospective acquisition represents an important strategic move for Dick’s, extending its reach into the global market through Foot Locker’s established brand.
This acquisition highlights the evolving landscape of retail and the challenges faced by traditional brick-and-mortar operations. If finalized, it could provide an opportunity for Foot Locker to leverage Dick’s Sporting Goods’ resources and expertise to rejuvenate its business model and expand its market presence.