In a major retail shakeup, Dick’s Sporting Goods has announced plans to acquire Foot Locker in a $2.4 billion deal. This move will combine two of the biggest names in sports and sneaker retail. While the acquisition promises more choices for customers, it could also lead to fewer discounts and changes in store locations. Let’s break down what this means for shoppers, employees, and the future of both brands.
A Big Merger in Sports Retail
Foot Locker, a well-known name in sneaker and streetwear culture since the 1970s, currently operates around 700 stores across the U.S. On the other hand, Dick’s Sporting Goods, founded in 1947, has more than 750 locations and is known for its broad range of sporting equipment and apparel.
The acquisition, valued at $2.4 billion, is expected to be finalized by the end of 2025. Despite the buyout, Foot Locker will continue to operate independently under its own name, along with its other brands like Kids Foot Locker, Champs Sports, WSS, and more.
What Shoppers Can Expect
While this move aims to offer a broader selection of merchandise—especially in footwear—it may also lead to fewer promotional deals. Both Dick’s and Foot Locker are top wholesale partners of Nike, so customers can expect to see more exclusive sneaker drops and a deeper collection of athletic shoes.
However, since both companies will now be under one roof, there is concern that competition between them could decrease, possibly leading to fewer discounts for shoppers used to seeing sales and seasonal deals.
Store Closures and Openings
Foot Locker has already been struggling in recent years, with its stock dropping by 41% in 2025 before rebounding after the merger news. The company had already planned to close 400 underperforming stores by the end of 2024, while opening 280 new ones as part of a fresh strategy.
Dick’s CEO Lauren Hobart mentioned that some additional Foot Locker locations may still close after the merger, though these decisions will depend on store performance and location overlap.
Meanwhile, Dick’s is pushing forward with its House of Sport concept—a new type of store featuring interactive sports experiences like batting cages, golf simulators, and climbing walls. The company plans to open 100 House of Sport locations by 2027, and they are already proving to boost foot traffic in malls.
Minimal Impact on Brand Identity
Hobart reassured investors that most consumers won’t even realize the two brands are under the same company. “It’s not about combining them into one; it’s about strengthening both brands individually to meet customer needs,” she said during a call.
Foot Locker CEO Mary Dillon echoed the sentiment, saying the deal would improve the shopping experience, allow more access to top sneaker brands, and enhance digital and in-store offerings.
Is the Merger Facing Any Roadblocks?
Despite some public concern about reduced competition, the companies do not expect any pushback from federal regulators like the Federal Trade Commission (FTC). Both firms believe the deal won’t hurt consumers and instead aims to improve the retail experience.
Other Major Retail Mergers
This isn’t the only major corporate deal making headlines. Capital One recently completed its purchase of Discover, and Spectrum, a major cable and internet provider, is merging with a competitor in a $34.5 billion agreement.
The Dick’s and Foot Locker merger is one of the most significant developments in U.S. retail this year. While customers can look forward to better sneaker availability and new shopping experiences, the possibility of fewer discounts and store closures remains. As both companies adapt, shoppers are advised to keep an eye on updates—especially if their local stores are affected.