Warren Presses Antitrust Agencies to Weigh Blocking Dick’s–Foot Locker Deal

In a letter sent Tuesday to both the Federal Trade Commission (FTC) and Department of Justice (DOJ), Warren argued the merger has the potential to shrink competition, push up sneaker prices, and put retail jobs at risk, per CNBC. She said the transaction, if approved, could leave the U.S. athletic footwear market dominated by two major players—the new Dick’s–Foot Locker entity and JD Sports.

Citing a July Credit Karma survey, Warren noted that more than half of parents are already scaling back basic household needs, such as groceries, to cover back-to-school expenses. According to CNBC, she warned that any additional price hikes for athletic shoes could deepen financial strain on families.

Warren’s concerns also stem from a wave of consolidation in the sector. JD Sports, based in the U.K., has significantly grown its U.S. presence since 2018, acquiring retailers including Finish Line, Shoe Palace, DTLR, and Hibbett. If the new deal goes through, she said, the two largest competitors would control roughly 5,000 stores nationwide, a scenario she fears could pressure smaller businesses and tilt bargaining power heavily toward the largest chains.

Per CNBC, Warren wrote that Dick’s and Foot Locker currently vie against one another—and against independent retailers—for supplier contracts. A merger, she said, could enable the combined company to secure more favorable terms from manufacturers, leaving smaller competitors struggling to compete and possibly subject to restrictive supply practices.

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The letter arrives amid a shift in merger oversight between presidential administrations. The Biden-era FTC took a tougher approach, blocking several high-profile retail transactions. The Trump administration, in contrast, has already signed off on at least one deal previously stopped under Biden—Nippon Steel’s acquisition of U.S. Steel—though its position on large-scale retail mergers remains unclear.

Not everyone sees the Dick’s–Foot Locker tie-up as a major threat to competition. Amanda Lewis, a former FTC mergers official and now a partner at Cuneo Gilbert & LaDuca, told CNBC the two retailers together would account for about 15% of the sporting goods market—a level she said usually doesn’t draw significant antitrust concern. She added that if regulators did impose conditions, they might require selling a small number of stores, a concession she believes would be less demanding under the current FTC leadership.