I do not have the POS data for retail accounts, but I visit malls on a daily basis (masked up and social distancing of course). I also have access to my own data from resale and the last month and a half, have been the most profitable six weeks I’ve had in the last two years. Stores have been open longer than I’ve been back visiting store locations.
I just started really working again and my sales online from 7/20/20 to 8/22/20 is right at $69,379 on 455 pairs. That’s 152.48 per pair average. In my most recent book I discussed that third party websites had seen a decrease in sales at the premium price points. That trend has reversed as cities are opening up again.
There are a few reasons why this has happened:
- The need to get out of the house. As a number of states have opened up, the mall has become a destination again. The openness of the mall/factory outlet has given people a level of comfort in public, that to be honest, has also made people a bit too comfortable. Sneaker retail has done a great job of enforcing masks policies, but it’s still stressful for managers.
- For the first time in sneaker brick and mortar history, store hours are logical and store managers are recapturing personal time they haven’t had before. This has created a more energetic store with managers leading the way.
- The 11 to 7 store hours, forced the consumer to be more thoughtful about what they want and why they are visiting. Removing the three extra hours (10-11 am and 7-9pm) has increased the number of people walking into doors. This has also made it tougher to social distance in some instances, but for business purposes, it’s golden. Even as the holidays roll around, stores should certainly maintain these hours and even consider closing on Black Friday as the engagement the following day, as evidenced by consumer behavior at stores and at the register, will explode even in limited hours. The store hours have created brick and mortar scarcity (don’t look that up, I just thought of it).
- The time away from sneaker culture and sneaker releases didn’t diminish the content around sneakers. Nike has ramped up content in its eco-system and so have other brands, as well as sneaker blogs. Hibbett Sports increased content on its site and they have done 25% off of “order online/pick up in store”. The sales strategies have been very good by all stores, contrary to what I thought. I’m coming back to this.
- I have said this before, but I’m saying it again… The unbanked have become a part of the digital eco-system and they are engaging in store and also converting cash into gift cards, debit cards and buying in-store and online.
- The inventory that didn’t ship from brands has been hitting bigger accounts in waves creating a throwback to the beginning of sneaker culture. You don’t know what will be in the store when you arrive; which has made some people into daily visitors to malls who typically only showed up on release days.
- Employees/Sales Leads aren’t being given as many hours. In stores like FootLocker this means every sale is important and you can see sales leads flying around the store to help customers. Very rarely are customers standing without being asked if they need assistance. Better employees are winning.
- Stores are looking at an opportunity to clear dead inventory and sales have been ramped up. This was problematic initially. Stores placed items on sale as stores reopened, and they didn’t have to do this. It was poor speculation. Stores are now looking deeply at brands they are working with and recognizing that although unemployment benefits have gone away, shopping has not slowed down. The “Let’s get this s–t outta here,” sales are bringing in every demographic.
- The work in the store, stocking, unboxing received shipments, filling holes on walls, has to be done within the limited time. Store employees are constantly working as opposed to the dead time that used to happen throughout the day.
- Did I say that managers are happier than I’ve seen them? The 8-9 hour day is much better than the 10-12 hour day.
While my sales are not representative of what is happening in stores, resale is an indicator of brand heat, but consumer behavior can be seen in how buyers are functioning online. What has been your experience since the stores have been reopening? Is the same true for other retail experiences? I’d like to know.
