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Lifestyle Sneaker Brands DTLR, VILLA Merge

Urban lifestyle footwear retailers DTLR and VILLA are merging in an effort to give both brands “the strength of a national retailer,” according to a joint statement. Financial details of the merger have not been disclosed; private equity firms own both brands.

The merged retailer will comprise nearly 240 stores — 110 pre-existing DTLR outposts and 120 Villa doors — in 19 states and Washington, D.C.

Both DTLR, based in the Baltimore area, and Villa, headquartered in Philadelphia, are known for their community-centric cultures, and the companies said they plan to continue to serve local customers and neighborhoods post-merger. The store footprints of DTLR and VILLA are complementary, with little overlap, according to the statement.

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The modern retail climate is pushing more brands, large and small, to consider mergers in order to gain a larger footprint in the industry. As many as 92% of private equity execs expect greater or equal M&A activity in 2017, according to an A.T. Kearney survey.

In a prior interview with Retail TouchPoints, Pete Killian, Principal of The Cambridge Group, noted that more retailers would have to build “formal or loose alliances, because they will have to scale to become unavoidable gateways to valuable consumers.” With Amazon gaining even more of a stronghold in footwear, both DTLR and VILLA are likely to need every bit of exposure they can find.

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