In a game-changing retail shakeup, Dick’s Sporting Goods has announced plans to acquire Foot Locker for a staggering $2.4 billion, aiming to strengthen its foothold in the global athletic apparel and footwear industry.
As the largest sporting goods retailer in the U.S., Dick’s has enjoyed a solid financial run. However, its expansion has been largely confined to domestic markets. That’s where Foot Locker comes in… despite recent struggles due to declining mall traffic and store closures, the sneaker giant still operates roughly 2,400 locations across 20 countries, offering Dick’s a fast track to international growth.
“Foot Locker brings a unique edge to the table… an urban, sneaker-driven audience immersed in basketball and streetwear culture,” said retail analyst Cristina Fernández from Telsey Advisory Group. “This complements Dick’s more suburban, sports-oriented customer base.”
Still, the announcement triggered concern among investors, who pushed Dick’s stock downward on Thursday. Much of the skepticism stems from Foot Locker’s recent downturn, including falling sales and its retreat from certain mall locations.
The deal, expected to close in the second half of 2025, would maintain Foot Locker as a standalone brand under the Dick’s umbrella. According to Foot Locker CEO Mary Dillon, the partnership will help the brand expand sneaker culture, enhance digital and in-store experiences, and provide stronger value to its loyal customers and brand collaborators.
The newly formed powerhouse will also face mounting industry challenges… from rising import tariffs on footwear to major brands like Nike and Adidas ramping up direct-to-consumer sales.
Before the merger can proceed, it must still secure approval from Foot Locker shareholders and regulatory authorities.
