Glossy – Last week, Foot Locker invested $100 million into sneaker resale platform GOAT, which merged with boutique brick-and-mortar sneaker reseller Flight Club last year. The investment is reportedly the largest-ever single investment into a sneaker resale platform, dwarfing similar investments like the $44 million investment StockX got from Google’s investment arm GV and Battery Ventures last year. (Stadium Goods received an undisclosed amount from LVMH in February 2018.)
This news is proof that sneaker resale is a huge market. The major platforms like GOAT, StockX and Stadium Goods are all worth well over $100 million each. Stadium Goods was acquired by Farfetch earlier this year for $250 million. While Foot Locker is by no means a bit player in the sneaker world, it is clear that resellers have a lot of buzz and dollars floating around them. By investing heavily into GOAT, Foot Locker seems to be planning for the future by making itself more visible to lucrative sneakerheads.
“The greatest benefit to Foot Locker in investing in GOAT is the potential to elevate its brand among sneakerheads,” said David Naumann, vp of marketing at BRP, retail consulting firm. “Sneakerheads are extremely passionate. Associating Foot Locker with GOAT and making their stores a location to order or pick up their cool shoes will make sneakerheads think more highly of Foot Locker. They may even pick up another standard shoe or T-shirt or something while they’re in the store.”