Political Scrutiny Intensifies Over Dick’s Sporting Goods’ Foot Locker Acquisition

The strategic acquisition of Foot Locker by Dick's Sporting Goods is facing mounting political criticism. U.S. Senator Elizabeth Warren has publicly attributed a sharp rise in athletic footwear prices to the merger, significantly increasing pressure on the sporting goods retailer.

Market data from Competitoor indicates that shoe prices climbed by 15% in the year leading up to September 5, 2025. In a recent statement, Senator Warren directly linked this trend to the takeover, which received approval from the Justice Department during the Trump administration. Warren had previously warned of potential price increases ahead of the transaction in August and now claims her concerns have been validated.

Behind the scenes, a substantial restructuring effort is underway. Parent company Dick's Sporting Goods is shuttering underperforming Foot Locker locations and adjusting inventory. This strategic reset of the Foot Locker business carries significant financial weight.

Should investors sell immediately? Or is it worth buying Foot Locker?

• The company anticipates one-time pre-tax charges totaling between $500 million and $750 million.
• These expenses are expected to temporarily impact financial performance, even as long-term synergies are projected.

The political firestorm centers on the combined entity's dominant position within the U.S. sneaker market. Warren contends that reduced competition harms consumers, citing store closures and a diminished selection for American shoppers. This political intervention presents a notable reputational risk for Dick's Sporting Goods as the operational integration of the two retail chains continues.

The 15% Price Hike as a Litmus Test

The current 15% price increase has become a critical benchmark for the merger's perceived success. Market observers are closely watching to see if the pricing power gained through enhanced market share can be sustained amid ongoing political and public scrutiny. The trajectory of consumer prices and the forthcoming quarterly results from Dick's Sporting Goods will provide the next clues.