When Dick’s spent $2.5 billion to purchase Foot Locker in May 2025, the company quickly moved to continue the brand’s turnaround.
That included a well-publicized decision to shut dozens of Foot Locker stores.
Dick’s closed 33 stores across the Foot Locker portfolio in the first quarter, which followed 35 such closures in Q4. The company, however, has scaled back its shutdown plans for the brand due to its Fast Break initiative, which has helped return the brand to profitability.
“Our Fast Break initiative is built on retail fundamentals, a more focused shoe wall, improved storytelling and the reintroduction of apparel with curated and complementary offerings. These updates are fast to implement, typically completed in a few days and require limited capital,” Executive Chairman Edward Stack said during Dick’s first-quarter earnings call.
The retailer plans to expand that program to “approximately 250 Fast Break stores across Foot Locker, Kids Foot Locker and Champs globally with further expansion ahead of the holiday season,” he said.
Stack, however, did not mention adding Fast Break to WSS, formerly known as Warehouse Shoe Sale, a brand it acquired as part of the Foot Locker purchase. That brand has been closing locations at a much faster clip than its former parent company.
Dick’s closing WSS stores
While Dick’s plans to preserve the Foot Locker name and leverage it to grow its sneaker business, the company’s plans for WSS are less clear. It closed eight of the chain’s locations in Q4 and another 43 in Q1, bringing its total to 100, down from 151.
WSS focuses on discounted athletic and casual shoes, especially in urban markets. It’s known for carrying brands such as Nike, Adidas, and Puma at lower price points.
Dick’s has not discussed WSS during earnings calls since completing the Foot Locker acquisition.
The retailer did not immediately return a request for comment about the future of WSS.
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WSS was an effort to expand Foot Locker’s reach
When Foot Locker spent $750 million in 2021 to purchase WSS, it specifically cited the deal expanding its reach in two key ways.
“WSS is an athletic-inspired retailer focused on the large and rapidly growing Hispanic consumer demographic, operating a fleet of 93 off-mall stores in key markets across California, Texas, Arizona, and Nevada,” according to an SEC filing.
The chain drove 80% of its sales through its loyalty program, and Foot Locker clearly felt the acquisition gave it access to a customer base it was not reaching.
“Through this transaction, Foot Locker will benefit from WSS’s differentiated market position and complementary customer base and real estate portfolio. WSS’s assortment of classic styles will further diversify Foot Locker’s product mix, enabling the company to serve a broader range of consumer needs across price points,” the chain shared.
That strategy fit Foot Locker’s expansion plans, but WSS appears less aligned with the premium-brand focus Dick’s has emphasized.
WSS may not fit Dick’s business model
Williams Trading analyst Sam Poser shared at the time Dick’s Sporting Good acquired Foot Locker that he expected the brand to leverage its acquisition for better inventory.
“Dick’s and Foot Locker combined will be able to use its heft to pressure its vendors for more of what it wants,” Poser told WWD. “Generally, such strength should be good. However, it’s essential that brands, especially the strongest ones, stick to their principles, and do not believe that orders from the Dick’s Sporting Goods and Foot Locker merchants always reflect the demand of the end consumer.”
He also suggested WSS may not be part of Dick’s long-term strategy.
In an Aug. 27 note, Poser wrote that Williams Trading “would not be surprised” if Dick’s chooses to sell WSS and shut down Champs, according to WWD.
CEO Lauren Hobart’s comments on the earnings call highlighted a different focus.
“One of our biggest advantages is the depth of our brand relationships. We are a critical partner to the most important brands in our industry, and that shows up in the access, allocation and marketing support we receive.”
She cited Nike, Adidas, Fanatics, Vuori, and Gymshark as key brands during the call.
That kind of premium brand positioning has no obvious role for a discount chain like WSS.
The discount WSS model may no longer fit the four pillars Stack mentioned building the business around, which include:
- Omnichannel athlete (shopper) experience
- Differentiated on-trend product assortment
- Best-in-class teammate (employee) experience
- Creating deeper brand engagement
That’s a very different approach from what WSS offered as a value-based retailer.
Dick’s silence on WSS suggests that the chain’s remaining stores don’t factor significantly into the company’s long-term plans.
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