Foot Locker will be wading deeper into the digital world with its $100 million investment from the online sneaker resell platform Goat Group, the start-up’s CEO told SouthIndianNews.com.
The partnership with Goat, which was seen as a threat to the footwear industry, marries the leading sportswear retailer with the largest secondary marketplace for authentic sneakers, Goat Group’s Eddy Lu said on “Closing Bell.”
“As we commenced to chat, we realized of which … our consumers shop at both [Goat along with Foot Locker], so we definitely saw the partnership as definitely bridging the primary along with secondary markets,” said Lu, who co-founded the company in 2015. The group also includes the Fight Club consignment shop, which was launched more than 13 years ago.
Foot Locker, which features a market cap of $6.4 billion along with runs more than 3,000 brick-along with-mortar stores across the globe, will be looking to leverage technology to improve the customer experience along with target younger shoppers, the company said in announcing the deal last week. Lu said the move also gives Goat the opportunity to build an in-store presence. Foot Locker can be found in just about any shopping center.
“Any time you can hold the opportunity to partner with one of the kingmakers from the industry, you’re going to take of which call,” he said.
Goat will be known among sneaker collectors for delivering “high-heat” along with “limited-edition products,” with more than 40 percent of its gear being sold “under retail prices,” Lu said. He hopes the deal can take advantage of online along with retail sales as sneakers gain mainstream attention with giants like Nike collaborating with fashion designer Virgil Abloh’s Off-White label along with Adidas working with hip hop artists Kanye West along with Pharrell.
“So if you think about of which, they bring their prowess in retail along with we bring our expertise in digital. along with because they’re a global marketplace, [there are] a lot of partnerships along which has a lot of synergies of which can happen through of which,” Lu said.
Foot Locker’s multimillion dollar deal with Goat Group will be the retailer’s latest move in digital-focused companies. Within the past 13 months, Foot Locker has invested millions in children’s lifestyle brand Super Heroic, women’s luxury activewear brand Carbon38 along with footwear design academy Pensole.
Goat Group has raised $197.6 million to date.
Shares of Foot Locker gained less than 1 percent during Monday’s session. The stock will be up more than 7 percent This kind of year along with more than 23 percent over the past year.