Atmos, the Tokyo-based sneaker retailer owned by Foot Locker Inc., is exiting North America.
The retailer, which has three stores and an e-commerce platform in the U.S., announced today that it has made the strategic decision to focus on Japan and Asia.
“The Atmos brand has a unique and authentic identity, character and spirit. Given the strength of Atmos in Japan and Asia, we are focused on further investing in this market. Though in line with this focus and our plans for simplification, we have made the strategic decision to close our three Atmos stores in North America and our Atmos U.S. website,” said Atmos SVP and GM Patrick Walsh in a statement. “We are confident that this is the right move for Atmos and will help us continue to work in service of bringing sneaker and street culture to our customers in Asia.”
Atmos was founded in Harajuku, Tokyo, in 2000. In the years since, the retailer expanded its brick-and-mortar footprint, including three U.S. stores in New York, Philadelphia (which was bolstered by a new women’s experience in October 2022) and Washington, D.C.
In August 2021, Foot Locker Inc. spent $1.1 billion in cash to acquire both Atmos and West Coast shoe store chain WSS. Specifically, the acquisition of Atmos (Text Trading Company K.K.) was completed for $360 million in cash.
Insiders were bullish on the deals. “They’re both really unusual companies that will complement the Foot Locker stable of brands,” Matt Powell, then the senior sports Industry advisor at The NPD Group Inc., said at the time of the acquisition.
In March, Mary Dillon — who was announced as the next CEO of Foot Locker Inc. in August 2022 — offered insights into the company’s plan to reach $9.5 billion in sales by 2026, which included a strategy with four key pillars. One pillar was to focus on optimizing its fleet and unique store banners. The retailer said Atmos would serve as a ground for innovation while being rooted in Japanese culture.
In August, Foot Locker Inc. announced a sales decline of 9.9 percent and a loss of $5 million for the second quarter. (At Atmos, comp sales fell 10 percent in the quarter.)
Despite the overall soft results, Dillon — who previously transformed Ulta Beauty — said she was confident in the retailer’s ability to pick business back up with its turnaround strategy. “Now we really have the right team, and the plans in place to return our company to sustainable longterm profitable growth,” Dillon told FN.
