Foot Locker, the most mall-based mass market shoe retailer, has invested $ 100 million in the sneak market, and sells primarily the rare and exclusive high end athletic and lifestyle shoes, the GOAT Group.
The companies said the investment will eventually lead to the Foot Locker and Goat Group combining their efforts across their digital and physical retail platforms.
GOAT said in a statement that the company would use the investment to accelerate its global business, expand its omnichannel experience and its technologies.
In an interview, GEAT co-founder and chief product officers refused to disclose the company's valuation, revenue, how the sale breaks down geographic regions, or how it will work with Foot Locker going forward.
In 2018, several top sellers at GOAT sold over $ 10 million of sneakers up from $ 2 million in 2017, according to t he company. GOAT Group now counts over 600 employees, up from 200 a year ago, with 12 million users active on the platform. This figure is up massive from last year when 2.5 million people were on the platform.
Over the same period, GOAT increased its sneaker listings to 750,000 from 200,000 and now has 150,000 salespeople selling to over 12 million customers. With growth like that, it's no wonder Foot Locker wants a sip of the GAT living room.
"At Foot Locker, we are constantly looking for new ways to raise our customer experience and bring sneaker and youth culture to people all over the world," said Richard Johnson, Foot Locker, Inc.'s chairman and CEO, in a statement. "We are excited to take advantage of the GAT Group's technology to further develop the sneaker acquisition experience and leverage its best-in-class online marketplace to meet the ever-growing global demand for the latest product. Together, Foot Locker and GOAT Group will be committed to trust and the sneaker industry's authenticity give consumers unparalleled experience and diverse offerings. "
A knowledgeable online observer commented that the deal was equivalent to Blockbuster investing in Netflix back when the defined video delivery service was still in its declining days before becoming obsolete.
"In 2015, we pioneer the ship-to-verification model with a mission to get a seamless and secure customer experience to the secondary sneaker market," said Eddy Lu , co-founder and CEO of GOAT Group. "With over 3000 stores, Foot Locker will support our primary digital presence with physical access points all over the world, adding more value to our community of buyers and sellers. Having Foot Locker as a strategic partner will also expand our business because we continue to scale our business both internationally and internationally. "
Last year, GOAT increased $ 60 million when it announced its biggest strategic move to date – acquiring the physical dealer Flight Club is beginning to push into real-world store values.
Scott Martin joins the board of the GAT Group and expands Foot Locker's investment in start-up companies and brands, which already included women's luxury goods for Carbon38; tactical play and children's lifestyle brand Super Heroic; and footwear design academy PENSOLE.
GOAT has increased $ 197.6 million since it was launched in 2015. The company competes with other vendors such as Stock X.
In an interview with Highsnobiety, senior educator advised Matt Powell, "The Sneaker Resale Market has been Disturbing in the primary market Foot Locker invests in that disruption and believes that the resale market will continue to grow and that will be part of that growth. "