Sen. Elizabeth Warren (D-Mass.) raised concerns with the proposed merger between Dick’s Sporting Goods and Foot Locker on Tuesday, citing the potential blow for American families and businesses.
“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 Trade Commission (FTC) and Antitrust Division of the Department 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 said small businesses could be threatened by the deal, valued at $2.4 billion.
From 2017 to 2022, one out of every four shoe stores across the U.S. closed, which resulted in the loss of more than 25,000 jobs in the same period, Warren’s office said, citing Census Bureau statistics on the economy.
Warren also referenced a Credit Karma study released last month in which 39 percent of parents said they could not afford back-to-school shopping this year.
“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 said.
“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 said blocking previous megamergers has proven beneficial for consumers, 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 said.
“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 did not immediately respond to requests for comment on Warren’s letter. The Hill also reached out to Dick’s and Foot Locker.
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