Dive Brief:
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Foot Locker announced last week a strategic investment in the e-commerce and content platform NTWRK, whereby the two will bring on well-known brands, create content and access notable figures in youth culture, the company noted in a press release.
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Foot Locker and Live Nation led the investment round, bringing the total of Series A funds raised to $10 million, according to the press release. Foot Locker invested $3 million in the platform.
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The platform has partnered with activewear brands like Nike, Jordan, Adidas, Puma, Champion and New Balance, according to the release. Celebrities like Billie Eilish, Odell Beckham Jr. and Alexander Wang have participated in NTWRK product releases, The Wall Street Journal reported.
Dive Insight:
Foot Locker's decision to invest in NTWRK seems driven by the desire to maintain its relevance among young shoppers.
"NTWRK's innovating and engaging content platform is pioneering the way brands tell their stories and the way youth culture shops," Richard Johnson, Foot Locker's chairman and CEO said in a statement. "At Foot Locker, we are focused on continuing to elevate the customer experience and investing for growth, and our partnership with NTWRK reflects our commitment to driving our business in new and exciting ways."
This isn't the only investment that the activewear retailer has made recently. Earlier this year, Foot Locker announced that it invested $100 million into GOAT group, a sneaker marketplace. In January, it also invested $3 million in Super Heroic, a children's activewear startup, and in February, $12.5 million in Rockets of Awesome, a children's clothing company.
Foot Locker has also made investments within its own company. In January, the company opened its first "Power Store" just outside of Detroit, Michigan, and plans to open more in other major cities.
In March, Foot Locker reported the best sales in its history, but its first-quarter earnings were lower than expected.
Small Business
via https://www.aiupnow.com
Tatiana Walk-Morris, Khareem Sudlow
