Sen. Elizabeth Warren (D-Mass.) raised issues with the proposed merger between Dick’s Sporting Items and Foot Locker on Tuesday, citing the potential blow for American households and companies.
“Dick’s and Foot Locker currently compete with each other and with independent retailers to secure deals with suppliers. The new giant would have significantly increased power to extract favorable conditions with manufacturers,” Warren wrote in a letter to the Federal Commerce Fee (FTC) and Antitrust Division of the Division of Justice (DOJ).
“This could mean that independent retailers are at a disadvantage when it comes to negotiating with suppliers, which could give Dick’s and Foot Locker an incentive to engage in anticompetitive conduct to restrict suppliers from dealing with independent retailers,” she added.
The Massachusetts senator stated small companies might be threatened by the deal, valued at $2.4 billion.
From 2017 to 2022, one out of each 4 shoe shops throughout the U.S. closed, which resulted within the lack of greater than 25,000 jobs in the identical interval, Warren’s workplace stated, citing Census Bureau statistics on the financial system.
Warren additionally referenced a Credit score Karma examine launched final month during which 39 % of oldsters stated they might not afford back-to-school buying this 12 months.
“Dick’s Sporting Goods’s proposed acquisition of Foot Locker would combine two of the nation’s largest athletic footwear retailers, creating a giant that would have increased power across the business, from suppliers to workers to customers,” Warren stated.
“This deal could raise prices for families already facing higher sneaker costs from President Trump’s tariffs and threaten workers and small businesses,” she added.
Warren stated blocking earlier megamergers has confirmed helpful for shoppers, citing the failed merger between grocery giants Kroger and Albertsons.
“Following Kroger and Albertsons’ loss in court, the new CEO of Albertsons revealed the benefits of preserving competition by describing how the company now planned to improve to keep prices low ‘to attract more shoppers’ in order to compete with rival companies,” Warren stated.
“This is a striking example of the benefits of competition for consumers, and should give antitrust agencies the confidence to continue vigorously enforcing antitrust law,” she added.
The DOJ and FTC didn’t instantly reply to requests for touch upon Warren’s letter. The Hill additionally reached out to Dick’s and Foot Locker.
