Foot Locker makes $100M leap into the sneaker re-seller space
Foot Locker has made a $100 million minority investment in Goat Group, which claims to be the largest resale marketplace for sneakers.
With the new funding, GOAT has raised $197.6 million since launching in 2015 and has a valuation of $550 million, sources told Forbes. Sneaker listings on the platform have grown to 750,000 from 200,000 in the last twelve months. The Goat platform has over 35,000 unique styles available on its website and app, with some rare pairs fetching prices as high as $60,000.
A key technology is GOAT’s ship-to-verify tool that authenticates every pair of shoes it receives from sellers in order to prevent counterfeits. GOAT also has a physical presence with its acquisition last February of Flight Club, which has three stores.
Foot Locker and GOAT, according to a statement, are expected to “combine efforts” across digital and physical retail platforms. Said Eddy Lu, GOAT’s CEO, “With over 3,000 retail locations, Foot Locker will support our primarily digital presence with physical access points worldwide.”
Some wondered how GOAT could work inside Foot Locker’s locations. “Maybe Foot Locker stores will double as hubs for Goat, with kiosks where shoes can be dropped off, picked up, or authenticated,” wrote Cam Wolf for GQ. “Maybe Goat’s rare, vacuum-sealed kicks will pop up, mixed in with Foot Locker’s collection of general release sneakers.”
WIth the collaboration, Foot Locker gains access to GOAT’s authentication and other digital capabilities while extending its reach to sneakerheads. “We are constantly looking at new ways to elevate our customer experience and bring sneaker and youth culture to people around the world,” said Dick Johnson, Foot Locker’s CEO.
The alliance follows FarFetch’s acquisition of competitor Stadium Goods last December for $250 million. Last October, StockX, another re-seller, raised $50 million with investors that include GV (formerly Google Ventures) and Battery Ventures.
In an interview with Highsnobiety, NPD Group senior sports industry advisor Matt Powell said, “The sneaker resale market has been disruptive to the primary market. Foot Locker is investing in that disruption and believes that the resale market will continue to grow and its wants a piece of that growth.”
- Foot Locker, Inc. Announces $100M Strategic Investment In GOAT Group – Foot Locker/Goat Group/PRNewswire
- Foot Locker Invests $100 Million in Goat – GQ
- Foot Locker Invests $100 Million In Secondary Sneaker Platform – Forbes
- Sneaker Resale Battle Heats Up With Foot Locker’s $100 Million Investment in GOAT – Highsnobiety
- Foot Locker invests $100 million in GOAT Group – TechCrunch
DISCUSSION QUESTIONS: Where do you see the greatest potential benefits from the partnership between Foot Locker and GOAT? Do you see re-selling becoming a major opportunity inside Foot Locker’s physical stores?