Senator Elizabeth Warren is calling on the Federal Trade Commission (FTC) and Department of Justice (DOJ) to block Dick’s Sporting Goods’ proposed acquisition of Foot Locker due to concerns over reduced competition, increased prices, and job losses. The $2.4 billion merger could create a duopoly in sneakers and other athletic shoes between Dick’s and its next largest competitor, JD Sports.
Warren argues that the merger would give one company significant power to extract favorable conditions with suppliers, potentially harming independent retailers. This could lead to higher prices for consumers and reduced competition in the market. The senator also cites a July survey from Credit Karma, which found that more than half of parents plan to sacrifice necessities, such as groceries, due to rising back-to-school shopping costs.
The rapidly consolidating athletic shoe store sector has already seen significant mergers, with JD Sports acquiring smaller competitors like Finish Line and Shoe Palace. If approved, the merger would give JD Sports and the combined entity control over 5,000 athletic shoe stores in the US, potentially squeezing out smaller businesses.
Under President Joe Biden’s administration, the FTC took an aggressive approach to mergers, blocking several high-profile deals. However, it is unclear how the Trump administration will handle retail industry mergers. The FTC has approved at least one deal previously blocked by Biden, but it remains to be seen how new leadership at the agency and DOJ will view this merger.
Some experts believe that the merger is unlikely to raise significant concerns, as combined Dick’s and Foot Locker would represent only around 15% of the sporting goods market. However, others argue that the deal could still have negative consequences for competition and consumers. The FTC declined comment on the matter, while the DOJ did not respond to a request for comment.
Source: https://www.cnbc.com/2025/08/06/warren-asks-ftc-to-consider-blocking-dicks-foot-locker-merger.html