Foot Locker announced a $100 million strategic investment in GOAT Group, which operates secondary sneaker market brands GOAT and Flight Club, last Thursday. CEO Richard Johnson claims the new objective is “to inspire and empower youth culture.”
Johnson claims, “We want to create a more seamless, frictionless experience for our customer that wants to partake in the secondary market. Partnering with GOAT strengthens our relationship and engagement with our customer.”
GOAT, an acronym for “Greatest Of All Time”, was founded in 2015 by Eddy Lu and Daishin Sugano after Sugano discovered the Jordan 5 Grapes he bought off eBay were fake. Counterfeits are very common in the sneaker market, especially Nike (one of the most counterfeited brands in the world. The two set on a mission to establish an authentication process for reselling sneakers. Shoes are sent to any of GOAT’s 12 global facilities for authentication before being shipped to a buyer. GOAT takes a 10% to 30% cut.
In February 2018, GOAT merged with Flight Club, an operator of three retail stores for rare sneakers in New York, Los Angeles, and Miami. While GOAT Group does not release revenue or valuation information, Recode valued the company at roughly $250 million in 2018. With Foot Locker’s investment, GOAT is now worth more than $550 million.
With the investment, GOAT will potentially use Foot Locker’s global locations as access points for buyers and sellers. In addition, GOAT will strengthen Foot Locker’s digital capabilities and expand its digital footprint.
Image Source: SGB Media