Legacy retail company Foot Locker has invested $100 million in Goat Group, an online platform that sells and resells rare and classic sneakers, according to reports.
Eventually, the two companies will collaborate for an online presence as well as in physical stores, to offer customers exclusive shopping opportunities.
Foot Locker has upwards of 3,000 stores in 27 countries, many of which could serve as locations to feature Goat Group’s products. Goat Group, named for the sports acronym “greatest of all time,” was started in 2015 by college buddies Eddy Lu and Daishin Sugano.
The company has grown rapidly, and in 2018 it bought Flight Club, a rare sneaker consignment outfit. Goat Group’s customers skew younger and are digitally knowledgeable, a demographic Foot Locker is trying to attract.
“We are excited to leverage Goat Group’s technology to further innovate the sneaker buying experience and utilize their best-in-class online marketplace to help meet the ever-growing global demand for the latest product,” said Richard Johnson, Foot Locker chairman and CEO. “Together, Foot Locker and Goat Group’s shared commitment to trust and authenticity in the sneaker industry will provide consumers with unparalleled experiences and diversified offerings.”
Foot Locker has lately been investing heavily in online companies, including women’s activewear company Carbon38, children’s brand Super Heroic and Pensole, a footwear design academy.
With Foot Locker’s investment, Goat Group has raised $197.6 million so far. A member of Foot Locker’s strategy and store development division, Scott Martin, will join Goat Group’s board of directors.
Lu, the CEO of Goat Group, said the partnership will be fortuitous for both companies.
“In 2015, we pioneered the ship-to-verify model with a mission to bring a seamless and safe customer experience to the secondary sneaker market,” Lu said. “With over 3,000 retail locations, Foot Locker will support our primarily digital presence with physical access points worldwide, bringing more value to our community of buyers and sellers.”