Foot Locker buys two shoe chains for $1.1 billion

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(Reuters) – Footwear retailer Foot Locker said on Monday it will buy two small shoe store chains totaling about $1.1 billion in cash, as it looks to expand its business outside of malls and expand its reach in Asia.

The company said in two separate statements that the company is buying California-based WSS for $750 million and Japanese apparel retailer Atmos for $360 million.

Suppressed demand for sneakers and sports equipment by US shoppers, as well as government incentives, boosted Foot Locker sales this year, but the company said it was looking to focus outside of malls where traffic has come under pressure from the pandemic and an increase in visitors. Online shopping.

WSS has a fleet of 93 stores outside of malls throughout California, Texas, Arizona and Nevada, and has a Hispanic consumer base that Foot Locker is looking to capitalize on.

Atmos, which has most of its 49 stores in Japan, is best known for its collection of special edition shoes in collaboration with brands including Nike Inc.

WSS and Atmos will continue to operate under their own names. Foot Locker said both deals, first reported by the Wall Street Journal, will be funded with available cash.

Evercore acted as Foot Locker’s financial advisor on both deals, while RW Baird advised WSS.

(Reporting by Uday Sampath in Bengaluru; Editing by Vinay Dwivedi)

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