This is Part 1 of the report for the first third of 2021. I’ve been busy adjusting to the rules at retail to offset resale. Most hyped general release shoes are released via retail Apps. In brick and mortar locations, stores are flagged for selling more than five pair of shoes at a time to one person. It doesn’t matter what type of shoe it is. This has severely limited my ability to gauge what could potentially be a big release for a brand. I had a strategy that utilized everyday footwear to gauge brand heat. I would simply make the shoes available online. I would then utilize the discounts within the app or that I had available to recoup my purchase price when an item sold. This would allow me to buy any style, not just a “good” resale shoe. I used this to pick up brands like adidas, New Balance and Reebok. That option is no longer available as every retailer has removed most discounts of any type. The problem is there are more promotional items than in the past, in what is really a stronger retail environment than anyone expected. The best discount available is from Hibbett Sports’ reward program which accumulates points on every purchase and is available on any shoe being purchased. FootLocker has limited military discounts to 4 times a month.
As I am not interested in paying managers or creating backdoor situations for sneakers that may be in stock throughout the region, my sales strategy is symbolic of where and how resale is shifting. Unless the sneaker release is an Air Jordan 1 or Nike Dunk, there is hardly any resale from retail, unless there are considerable promotional events taking place, or you catch a model within the first three days of release. Because the majority of footwear I’ve sold in this quarter is from brand doors, the information is skewed heavily in favor of Nike and Jordan Brand. Of 2,170 pairs of sneaker sold through the first three months, only 2 pair were adidas and none were from other brands.
Also, and this is important, StockX has created a situation where if a sneaker is a hyped release and it isn’t released via a raffle on an App, store managers tend to be active participants in the resale market. Shoes never reach the sneaker wall. When an account is already limited in product received, this involvement in resale exacerbates issues between consumers and employees. Not all managers are involved, but a considerable amount of them are engaged in some form of partnership with resellers. This wasn’t always the case. StockX has created a marketplace where you can quickly see the price something is selling for. Prior to StockX resellers had to have some business savvy and take risks. There aren’t any risks anymore, but this has contributed to a lack of risk taking by buyers. A shoe can drop to 29.99 at retail and today’s resellers won’t buy it if it doesn’t have an offer on StockX. StockX has disrupted resale and Nike’s Edit to Amplify has ruined the roll out of sneakers.
This leads me to my highlights during T1 2021.
HIGHLIGHTS
- Covid-19 continues to affect logistics. Every retail location is short on merchandise. In the last week more apparel is creeping into stores, but not enough to satiate a consumer looking to spend.
- City Gear/Hibbett Sports is encountering issues with their logistics as City Gear has moved some of its operations to Alabama from Memphis. Store managers feel as if certain stores are prospering while others are not getting any product at all.
- The local Footaction and Champs, which oddly enough aren’t in the same district as the FootLocker locations in the region, are languishing. The walls are redundant with product and the selection is poor. On some shelves, there are barely 12 shoes, where there used to be 60.
- The Nike stores in this region remain the busiest retail outlets, even during stimulus spending. Lines outside of the Tanger Nike Factory Store are typically 30 people outside on the weekends. The product mix consists of Jordan Retros, running shoes and an abundance of under 100 options for the Swoosh.
- I’ve been stating that adidas lacks brand heat, but the brand is doing some very good merchandising at Finish Line and Champs. The UltraBoost 21 just rolled out into stores, but it isn’t getting a strong response. The shoe looks different enough that it is being picked up, but because there are previous UB models on promo, sell through on the 21 will be limited. Adidas’ lack of doors to RTV to is very problematic in the U.S.
- Nike’s under 100 push at mainstream retail is buoy for accounts. The Blazer, Dunk and Air Jordan 1 GS models sell through immediately.
- Nike Basketball is dead. The LeBron is overpriced and the only basketball shoes to have any sell through are all Wilson Smith designed Air More Uptempos from the 90s.
- Finish Line’s flagship in Memphis removed the Nike Track Club room. The concept was incredible, but ultimately the store in a store proved to be a burden as inventory was low and the room was basically becoming a lounge for consumers. This is a sign also that JD is not as beholden to Nike as FootLocker is. FootLocker’s House of Hoops, which is typically loaded with Jordan Retro product, only has low end Jordan Brand and Nike Hoops shoes. That section feels as if it should be a standalone store catering to team sports. It’s something Nike and FootLocker should consider.
Sneaker Resale Report & Analysis 1st Third 2021 January to April 19th – Part 1
Sneaker Resale Report & Analysis 1st Third 2021 January to April 19th – Part 2
Sneaker Resale Report & Analysis 1st Third 2021 January to April 19th 2021 – Part 3
Sneaker Resale Report & Analysis 1st Third 2021 | Top 10 Sneakers Sold – Part 4
Sneaker Resale Report & Analysis 1st Third 2021 | Website Traffic Analysis – Part 5
