Foot Locker is forking more than $1 billion in cash to purchase two smaller shoe store chains as it looks to grow its business beyond malls and extend its reach in the lucrative Asian market.
The company is acquiring California-based WSS brand for $750 million as well as Japanese streetwear brand Atmos for $360 million.
WSS maintains a footprint of 93 off-mall stores across Arizona, California, Nevada and Texas. The brand is largely popular among Hispanic consumers — a segment that Foot Locker is eyeing as an area of growth. Atmos, meanwhile, operates 49 stores, 80 percent of which are located in Japan. Atmos is most recognized for its collaborations with other brands such as Nike and for its digital-first shopping experience.
The two companies will continue to operate under their own names.
Foot Locker‘s acquisition of the two brands comes on the heels of a surge in sales due to pent-up demand and federal stimulus, which helped boost consumers’ buying power. The company plans to leverage the two acquisitions to diversify its business beyond malls, which have been battered by a decline in foot traffic since the start of the pandemic.