What Dicks’ $2.4 Billion Deal Means For Sneaker Lovers in WA

What is the most money you've ever spent on a pair of sneakers? 50 bucks. 100 bucks. 250 bucks. How about $2.4 billion? 

Dick's Sporting Goods has just acquired Foot Locker which makes the owners of Dick's Sporting Goods now the world's largest specialty footwear retailer. 

According to forbes.com,
‘Dick’s Sporting Goods, the retail market share leader in sporting goods, will acquire Foot Locker, the world’s largest specialty footwear retailer, for $2.4 billion, nearly tripling total store count, expanding its global presence and further solidifying leadership in both the performance athletic sector and the broader sneaker and sportswear markets.’ 

Over the last several years Dick's Sporting Goods has been very profitable and a growing concern. Last year, they reported $13 billion in earnings. That's about a three to 5% increase year over year, meanwhile Foot Locker reported about $8 billion in revenue last year unfortunately, that's about a 1.9% Decrease.  

Now just imagine combining those two businesses together. The possibilities are a little staggering. 

Currently, there seems to be no plans for the stores to make any major changes. Dick's Sporting Goods will continue to operate exclusively in the United States. Foot Locker will continue to have an international presence. But what you might see is a change in some of the merchandise that Foot Locker will have to sell. 

One of the beneficiaries of this combination of businesses seems to be Nike. Nike is the top selling footwear brand for both Dick's Sporting Goods and Footlocker. Another footwear brand that will benefit from this partnership looks to be Skechers which is sold at he both Foot Locker and Dick's Sporting Goods. 

I'm about due for a new set of sneakers.
Change Is Coming to the Sneaker Retail Landscape | BoF
Dick’s Acquires Foot Locker For $2.4 Billion, Building Share In Sports And Sneaker Markets