American footwear chain Foot Locker will purchase two smaller shoe retail chains, one from California and one based in Japan.
CNBC reported the acquisitions of WSS and Atmos are part of Foot Locker’s plans to expand beyond malls and strengthen its presence in Asia.
“Both transactions reflect our commitment to our growth strategy and engaging with new and incremental consumers,” Foot Locker CEO Richard Johnson said, according to The Street. “With our ongoing investments in the business, we are confident in our ability to continue creating significant long-term value for our shareholders, consumers, vendor partners, and other stakeholders.”
WSS operates 93 stores throughout Arizona, California, Nevada and Texas, and caters to a Hispanic consumer base, CNBC reported.
“WSS has built a successful, high-growth business by pioneering the neighborhood-based store model, built on community engagement and a full-family offering,” Johnson said, as reported by Yahoo! Finance. “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.”
Atmos has a majority of its 49 stores in Japan and is known for its special edition footwear collaborations with other brands, according to CNBC.
“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,” Johnson said, according to Yahoo! Finance. “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.”
CNBC reported that the purchases will cost Foot Locker $1.1 billion in cash.
The California and Japan chains will continue to operate under their own brand names.
WSS produced $425 million in revenue in 2020 while Atmos generated $175 million, The Street reported.