Shoe Carnival is snapping up independent retailer Shoe Station in a $67 million cash deal as the company looks to expand its customer base across urban and suburban demographics.
In its first-ever acquisition, Shoe Carnival will now own and operate Shoe Station’s 21 locations across five Southeastern states – Alabama, Florida, Georgia, Mississippi, and Louisiana. With the addition of these units, the company expects to surpass 400 stores by the end of 2022 and will be on a path to double-digit new store growth in the years ahead, according to a statement. Prior to the acquisition of Shoe Station, the company operated 377 stores in 35 states and Puerto Rico in addition to its e-commerce site.
“We are excited to welcome Shoe Station to the Shoe Carnival team,” said Shoe Carnival President and CEO Mark Worden in a statement. “Coming on the heels of our best quarter of our best year in our 43-year history, this deal accelerates our journey toward becoming a multi-billion dollar retailer in the years ahead.”
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Shoe Station’s current CEO G. Brent Barkin, who is the son of Founder Terry Barkin, will become Shoe Carnival’s SVP of new business development and integration, reporting to Worden. The retailer said that Barkin will continue to lead Shoe Station while focusing on new business growth opportunities for the combined company.
“Shoe Carnival brings infrastructure and financial backing to significantly accelerate our Shoe Station brand growth,” added Barkin in a statement. “Taken together, the two brands create a winning customer value proposition. We are delighted to become part of Shoe Carnival, and I cannot wait to partner with Mark and his talented team to unlock more exciting opportunities to come.”
According to Shoe Carnival, the transaction is expected to contribute approximately $100 million in incremental net sales. After the close of the deal, the company will have more than $100 million in cash on hand, consistent with cash reserves from the same period in fiscal 2020.
“Given our strong balance sheet and significant investment in our back-end operations, we are ready to grow rapidly both organically and through further acquisitions,” Worden tells FN on a phone call. “This means growing the Shoe Station footprint immediately, while continuing to invest in Shoe Carnival’s retail expansion and also looking for ways to increase our market share with further acquisitions.”
