Warren urges FTC and DOJ to think about stopping the Dick’s-Foot Locker merger

Warren Raises Concerns Over Proposed Dick’s and Footlocker Merger

Senator Elizabeth Warren (D-Mass.) expressed apprehensions on Tuesday regarding the potential merger between Dick’s Sporting Goods and Footlocker, highlighting the possible negative impacts on American families and small businesses.

Warren remarked that “Dick’s and Footlocker are currently competing with independent retailers for favorable terms with suppliers. The new entity would greatly enhance their leverage over manufacturers,” as noted in her letter to the antitrust divisions of the Federal Trade Commission (FTC) and the Department of Justice (DOJ).

She pointed out that this situation would place independent retailers at a disadvantage during negotiations with suppliers.

The senator emphasized that small businesses could face threats amounting to around $2.4 billion.

Warren’s office referenced Census Bureau data showing that one out of every four shoe stores in the United States closed between 2017 and 2022, which resulted in the loss of over 25,000 jobs during that time.

Additionally, she cited research from Credit Karma, revealing that 39% of parents indicated last month that they were unable to afford back-to-school purchases this year.

Warren described the proposed acquisition as a move that would merge two of the nation’s largest athletic footwear retailers into a formidable force, potentially raising prices for families already grappling with the effects of tariffs imposed during the Trump administration. “This could also endanger workers and small businesses,” she remarked.

She referred to the previously blocked merger between grocery giants Kroger and Albertsons as a case where consumer interests were preserved, stating, “The court’s decision allowed Albertsons’ new CEO to emphasize competitive practices aimed at keeping prices low to appeal to shoppers amidst rivalry.”

Warren added, “This serves as a clear example of the advantages of consumer competition and should encourage the active enforcement of antitrust laws.”