What does the deal tell us about the future of sneaker retail?
Foot Locker announced today that it is investing $100 million into GOAT Group, the operators of the massive secondary sneaker market GOAT. In addition to providing an influx of cash, the companies said they plan to work together to leverage Foot Locker’s brick and mortar presence with GOAT’s digital marketplace.
The partnership between the companies makes sense, as they both operate at different ends of the same market. GOAT has become one of the most popular secondary sellers for in-demand sneakers. The company claims its top sellers made more than $10 million on the platform last year. GOAT Group claims its storefront has more than 750,000 listings from 150,000 vendors, all selling to more than 12 million customers. Foot Locker, meanwhile, has more than 3,000 physical locations. GOAT Group co-founder Eddy Lu suggested those store could become “physical access points” for GOAT’s digital marketplace.