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atmos shuts down North American stores
atmos Closes North American Stores and Focuses on Japanese and Asian Markets
Tokyo-based footwear retailer atmos has made a strategic decision to close its three North American stores and halt its online operations in the region. atmos, which is under the ownership of Foot Locker, sees this move as a way to concentrate its efforts on the Japanese and Asian markets.
A Unique Journey from Harajuku to the World
Founded in Harajuku, Tokyo, in the year 2000, atmos initially started as a small sneaker store specializing in vintage shoe styles. Over the past two decades, it has grown into a globally recognized destination for streetwear and sneaker enthusiasts. atmos has also fostered numerous collaborations with renowned brands such as adidas, ASICS, New Balance, Salomon, and notably, Nike Air Max.
Expanding Presence in the United States
atmos extended its footprint in the United States by establishing three physical stores in key locations: New York, Philadelphia, and Washington, D.C. In August 2021, Foot Locker acquired atmos, along with the footwear chain WSS, in a significant deal valued at $1.1 billion USD. Remarkably, atmos contributed $360 million USD to this substantial transaction.
Shifting Priorities and Challenges
Foot Locker's CEO, Mary Dillon, had previously outlined a comprehensive strategy aimed at achieving $9.5 billion USD in sales by 2026, with atmos playing a pivotal role in driving innovation in the Japanese market. However, the company faced setbacks as it reported a 9.9% drop in sales for the second quarter of the year. atmos, in particular, experienced a 10% decline in composite sales during the same period.
A Strategic Pivot
Patrick Walsh, atmos' Senior Vice President and General Manager, conveyed the rationale behind this strategic shift, stating, "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."
Embracing a Bright Future
Walsh expressed confidence in the decision, affirming that it will position atmos to better serve its customers in Asia. While atmos bids farewell to its North American presence, its commitment to delivering sneaker and street culture to enthusiasts in Japan and Asia remains unwavering. The brand's journey, which began in the heart of Tokyo's Harajuku district, continues with a renewed focus on its roots and its ever-evolving global appeal.
