In this video, I discuss why sneaker media needs to be careful accepting the Point of Sales data stating that Yeezy/adidas jumped over the Jumpman, again. Remember in 2017 this was stated, but I found that the data didn’t include Nike’s Direct Sales:
Why You Should Question NPD’s Data About adidas Overtaking Jordan Brand
I update the information in the article above in this video, with data from Nike Direct for 2021. After discussing why you need to question the data, I get into the Top Sneakers Sold in 2021, the 10 most expensive sneakers I sold in 2021 and I break down the price tiers of the sneakers I sold which can be found below.
As analysts who utilize Point of Sales data list their top 10 sneakers for 2021, I like to take the time to use my own micro-set of data based on sneaker sales I’ve made using StockX. I’ve long stated that resell can reflect brand heat at retail and this list hold true to that statement. When compared to the list of top sold shoes based on other analysts’ information, my data holds 5 of the 10 shoes listed there. A macro set of data is of course more comprehensive as it is typically fed from major sites and chains, but most POS data is not sold directly from the brands, which can place POS data at a small disadvantage. My data speaks more towards which brand is dominating beyond retail.
One of the benefits of selling on StockX is the export of data from sales over the last two years. In 2021 I sold 4,956 pair of shoes on the platform. Gross Sales: $586,666 dollars before StockX fees. After StockX fees my total was $519,723.40. That’s an average price of $104.87. Since I initially used StockX in 2017, the average sale decreased 38%.
What does this mean for sneaker retail? The resale market and retail market are both over-saturated. Even as Nike removes accounts as they build their Consumer Direct Acceleration, in order to increase the average price, more accounts will have to be taken (the reality is the majority of sales happen under 100, so my data is on par with the greater marketplace). I think the removal of accounts will happen with larger chains (especially since most mom and pops are gone) as there is considerable overlap of Nike accounts when you look at the locations of stores throughout the United States. Nike’s roll out of Rise and Unite concept stores will encroach on wholesale accounts and by default it will force big retail chains to contract. Add in the Swoosh’s increased development of their relationship with Dick’s Sporting Goods and JD Sports, and it begins to look like either Hibbett Sports or Foot Locker will begin to close more stores in the future. I’m thinking Foot Locker since they’ve already shut down Footaction. Hibbett Sports is less likely because their locations tend to be in small towns and in strip mall areas.
What does this mean for sneaker resale? The only people engaging in Sneaker Resale have considerable access to inventory, or they utilize bots for high end sneaker releases. My obvious access has more to do with discounts I am able to utilize and an abundance of consignment sales. The casual reseller is flipping what they can win, but beyond those acquisitions, reseller inventory is considerably down. I explain this using my own purchasing. I don’t use bots and my ability to use discounts at retail have been diminished due to policy changes. My bread and butter used to be walking in a Foot Locker, scanning the wall, grabbing kicks and using my discount to capture the 15% profit from that discount combined with promotional sales the company was having. Foot Locker and other retail outlets changed their policies. Shoppers could only by one pair of any shoe. It didn’t matter if the shoe was on deep discount. An example from the last two years was an adidas Crazy Boost You Wear Harden basketball shoe on sale for 19.99. The store had over 100 pair. In the past I could have picked up 3 pair a day. Those shoes sat for over two years, and I still couldn’t buy more than 1 pair a month. Last year at Foot Locker and its affiliates I bought $16,356 worth of sneakers (This number is high because the policy changes happened at the start of the summer. In the second half of the year, I only bought $2,431 dollars in sneakers, basically raffle wins from the app). At City Gear I bought $8,245 dollars in kicks. At Finish Line and Jimmy Jazz, I bought $440 and $107 dollars respectively. I spent $16,198 at Nike affiliated stores. The rest of my purchases were consignment.
My Nike purchases are on par with what I spent at traditional retail. The clear statement made here is Nike is rivaling their accounts in 2021. That’s not a small thing. In 2018, I spent $73,677 at Foot Locker, $40,428 at City Gear, $13,123 at Finish Line and $9,396 at Jimmy Jazz. Nike got $79,600 of my money that year. Nike was on par with Foot Locker, but the numbers at the other stores are considerably more. Which allows for another point for discussion. As Nike improves CDO/CDA the opportunity for resale from their doors diminishes and the ability to resale from traditional accounts diminishes. In sneaker culture there is a constant complaint about resale. This only happens because the most coveted shoes are being taken by bots. As you’ll see in my resale information, I don’t focus on hyped shoes as much. As a matter of fact, the majority of my sales happen from 0-150 dollars. The sales I have at the premium end are basically consignment or raffle wins of shoes I didn’t keep for the family. I’m sure you’re ready to look at the top shoes sold, so I’ll stop there. As always, you can check the top sold lists of bigger analysts and you’ll find my list is comparable. If you have a request for a deeper dive into this data, I have a consulting fee scale available on the shop: arch Consultation & Discussion – ARCH-USA
