World Footwear


Foot Locker accelerates Asia-Pacific expansion with acquisition of atmos

Aug 2, 2021 Asia Pacific
Foot Locker accelerates Asia-Pacific expansion with acquisition of atmos
The retailer has entered into a definitive agreement to acquire Text Trading Company, K.K., which owns and licenses the atmos brand, a digitally led, premium, global retailer headquartered in Japan
The deal amounts to 360 million US dollars and will be funded with the company's available cash.

According to Foot Locker's statement: "atmos is a culturally connected brand featuring premium sneakers and apparel, an exclusive in-house label, collaborative relationships with leading vendors in the sneaker ecosystem, experiential stores, and a robust omni-channel platform". atmos's base of 49 stores globally, including 39 in Japan, operate under the atmos banner and atmos pink, its women's brand. The acquisition of atmos will accelerate Foot Locker's global reach with a highly strategic foothold in Japan, the third largest economy globally, while extending the company's premium and top-tier offering. atmos generated approximately 175 million US dollars of revenue in its fiscal year 2020, more than 60% of which was generated through digital channels.

Richard A. Johnson, Chairman and Chief Executive Officer of Foot Locker, Inc. said, "atmos is uniquely positioned through its innovative retail stores, high digital penetration, and distinctive products that have made it a key influencer of youth and sneaker culture. With atmos, we are executing against our expansion initiative in the rapidly growing Asia-Pacific market, establishing a critical entry point in Japan and benefitting from immediate scale. We are thrilled to bring atmos into our portfolio of brands and build on the strong foundation of this differentiated business."

"atmos was founded in 2000 as a small retail store in the back streets of Ura-Harajuku. Our passion for sneaker culture and ability to connect with our customers have been the driving forces of our growth ever since. Importantly, Foot Locker shares this passion, and we are excited to join forces with them to propel atmos into our next phase of growth", concluded Hidefumi Hommyo, Founder of atmos.

atmos will maintain its name, operating as a new banner in Foot Locker's portfolio. The transaction is expected to close late in the third quarter of 2021, subject to the satisfaction of customary closing conditions.

Image credits: Romain Dancre on Unsplash