MAJOR retailers such as Saks Global, Lowe’s, and Dick’s Sporting Goods are pursuing billion-dollar deals in order to bump up their profitability and grow their market share.
The huge acquisitions come amid shifting consumer preferences and a struggling retail sector.
Amid a struggling retail industry, major names are taking on billion-dollar deals to improve their standing[/caption]
Saks Global, the parent of Saks Fifth Avenue, has a $1 billion deal in the works[/caption]
Lowe’s is planning to gain a leg up on Home Depot with its $8.8 billion deal[/caption]
The year began with an unprecedented number of mergers and acquisitions in the retail industry, with several notable brands that switched hands in January, including Laura Ashley, True Religion, Urban Skin RX, Vera Wang, and more.
As 2025 pushed forward, other huge names were acquired or underwent a huge merger, including Skechers, Walgreens, and JCPenney, with the latter deal involving popular brands like Aéropostale, Lucky Brand, and Nautica.
These retail transactions are aimed at accelerating growth, competing with e-commerce giants such as Amazon, and adapting to quickly shifting shoppers’ expectations.
By buying or merging with smaller or complementary companies, retailers can quickly acquire new technology, enter new markets, and expand their product offerings.
Saks Global, Lowe’s, and Dick’s Sporting Goods have all completed or are planning to complete billion-dollar deals in recent months in a bid to boost their success in a struggling industry.
SAKS GLOBAL
Saks Global, the parent company of Saks Fifth Avenue, is looking to sell 49% of its ultra-luxury department store brand Bergdorf Goodman for around $1 billion, people familiar with the matter told The Wall Street Journal.
Four or more potential bidders are considering the purchase, including Middle Eastern sovereign wealth funds as well as strategic investors, with the deal potentially going through as early as 2026.
“We have initiated a strategic process to explore the potential sale of a minority stake in Bergdorf Goodman,” Richard Baker, executive chairman of Saks Global, told the outlet.
“While Bergdorf Goodman is core to our strategy, this process is intended to unlock value for our stakeholders and de-lever our business.”
Saks Global, which is also looking to sell $600 million of real estate, acquired Bergdorf Goodman and was formed as an entity when it purchased the Neiman Marcus Group for nearly $2.7 billion in 2024.
The profits from selling part of the luxury department store would aid Saks Global in paying off some debt from the acquisition.
LOWE’S
Lowe’s is also looking to expand its reach in the retail sector, plotting to buy Foundation Building Materials, or FBM, for $8.8 billion.
A building material distributor founded in 2011, FBM has more than 370 locations across the US and Canada.
The company serves the construction industry with building materials and tools such as ceiling systems, drywall, insulation, metal framing, and more.
Big retail deals in 2025
The retail sector has seen a high volume of mergers and acquisitions in 2025.
Although the total number of deals has decreased, the total value of these transactions has grown significantly, driven by “megadeals.”
Retailers are prioritizing fewer, larger, and more strategic acquisitions to boost their digital capabilities, expand their market share, and achieve greater operational efficiency by consolidating their supply chains.
Intense competition from online retailers like Amazon is a major threat, pushing companies to purchase or merge with smaller or struggling brands to gain capabilities and expand their customer base.
Lowe’s is acquiring FBM to provide its customers with access to the items the company distributes to stores and attract more professional builders, contractors, and other business professionals.
“With this acquisition, we are advancing our multi-year transformation of the Pro offering,” said Marvin R. Ellison, Lowe’s CEO, in a press release.
“FBM’s scalable, multi-trade distribution platform and strong leadership combined with our recent acquisition of ADG will significantly enhance our Pro offering. We’re excited to welcome the FBM team and strengthen our solutions for our growing Pro customers.”
The acquisition, expected to be completed in the fourth quarter this year, will also provide Lowe’s with access to FBM’s distribution networks so the home improvement chain can control how it gets the new items to shoppers.
DICK’S SPORTING GOODS
Dick’s Sporting Goods officially completed its acquisition of Foot Locker for $2.4 billion on September 8, four months after it was announced.
As a result of the pricey deal, Dick’s will have a stronger presence in the sneaker market, positioning the company to become a global leader in the sports retail sector.
Dick’s, which expects to run Foot Locker as a standalone business within its portfolio and maintain its various brands, will now operate more than 3,200 stores as well as e-commerce and digital businesses.
“Bringing together the strengths of both companies will help us return Foot Locker to growth while continuing to fuel DICK’S momentum,” said Lauren Hobart, CEO of Dick’s, in a press release.
“As a combined company, DICK’S and Foot Locker will create a global platform that will redefine the sports retail industry and unlock value for both companies, our brand partners, our teammates, our communities and our shareholders.”
‘BETTER POSITIONED’
Foot Locker CEO Mary Dillon previously discussed the acquisition, noting that it would benefit shoppers as well.
“Foot Locker will be even better positioned to expand sneaker culture, elevate the omnichannel experience for our customers and brand partners, and enhance our position in the industry,” she said.
Check out these other huge deals underway.
Office Depot confirmed a giant change to its ownership under a new $1 billion deal.
Plus, Claire’s is planning to keep 950 stores open after a $140 million mall takeover.
Dick’s Sporting Goods completed its acquisition of Foot Locker for $2.4 billion in early September[/caption]
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