Foot Locker just announced that it’s investing $100 million into digital stalwart GOAT Group, which operates buzzy sneaker market brands GOAT and Flight Club. Usually, an edgy digital asset could be the boost that stuffy brick-and-mortars need. In this case, however, the shoe might also be on the other foot.
With 9.5 million Instagram followers and over 3,000 retail locations, Foot Locker could help GOAT secure a solid physical footprint among mainstream stores. Yet Foot Locker’s interactions on Instagram have room for growth, according to Gartner L2’s Digital IQ Index: Specialty Retail. GOAT, on the other hand, has gotten noticed maaaad fast, lacing in $10 million worth of sold sneakers in 2018 as compared to $2 million in 2017. At this rate, the brand is marching toward a booming future as a new cult favorite.
Foot Locker also suffers from the lowest email open rate of all brands tracked in Gartner L2’s study, with undifferentiated email content sent to a third of its list at a time. Incorporating a name as hot and fresh as GOAT and its secondaries could grab more eyeballs and clicks going forward. Additionally, as athletic shoes race to the top of luxury’s top sellers, there’s no better time than the present for both Foot Locker and GOAT to pull out all the stops—digital and physical—toward making the most of this moment in fashion trends.