Foot Locker Inc revealed on Monday that it’s in the midst of purchasing two smaller shoe store chains in an effort to expand its business reach. These deals will cost a combined $1.1 billion.
While the decision to purchase California-based WSS for $750 million is spurred on by a desire to move its business beyond malls, Footlocker’s $360 million purchase of Japanese streetwear retailer Atmos is part of the company’s plan to tap into the Asian market.
After foot traffic in malls was severely curbed by the coronavirus outbreak, steady recovery from the pandemic and a consequential resurging demand in footwear has enabled Footlocker to boost its sales this year, along with government stimulus packages.
Following the conclusion of the takeover deals, both WSS and Atmos will continue to operate under their own names.
With a collection of 93 stores across California, Arizona, Nevada, and Texas, WSS primarily serves an urban and Hispanic demographic group, which Footlocker is currently looking to tap into as well.
Atmos operated 49 stores across Japan and is famed for offering a range of special collection footwear, most notably through its collaborations with brands such as Nike.
