STORE OBSERVATIONS:
1. Hibbett Sports and City Gear both are merchandising with duplicate models on the wall. Every retailer is doing this. The Jordan wall might as well be taken down. Even with duplicates, there are about six pair total in that section. Stores are relying heavily on apparel. Jordan Brand is in limited supply and Dunks don’t last a day in the stores, so most of the sneakers in these stores are in-line models with duplicates on every shelf space in the sneaker section. Urban retail is almost devoid of adidas and New Balance shows up in Hibbett, but not in City Gear. Brooks has also arrived in some urban retail locations, but the shoes aren’t performing well. Running shoes need true sales leads and urban retail isn’t set up to move that product.
2. Foot Locker Stores look crowded, but they are merchandising with duplicates as well. The House of Hoops side of the store is filled with Nike Basketball, but Jordan Brand is like other retail outlets… there aren’t any Jordans. FootLocker has begun carrying a few ASICS models, Brooks and there is an abundance of Reebok and even Vans, but they aren’t selling through very well. The fact remains that the stores are having difficulty keeping part timers. This is because the company has changed the discount policy and removed the commission for sales. When you build a business around hiring teens, when you remove their only reason for taking a job at FootLocker (discounts and first dibs on hot releases) it becomes harder to keep that minimum wage job filled when the fast food joints are paying a lot more (I’m amazed no one is talking about this.)
3. Finish Line/JD Sports stores look fantastic, and they have the best product mix of any retailer in this region, but the stores aren’t exactly pleasant. This is becoming de facto at sneaker retail. Every store feels devoid of feeling and love. I guess this is less about Finish Line and more about sneaker retail.
4. The Nike Clearance Store was the goldmine in this region. With very limited inventory and rules that have severely limited resale for those who utilize StockX, the footwear there is not very good. Nothing comes out of the storeroom with a box top anymore. The most surprising shoe, in July, was the Zoom G.T. Cut. That model actually landed at the Clearance. As limited as it was, there were buyers clamoring to get the half box G.T.s and rightfully so. The Nike Factory Store is actually loaded with some surprise, solid resale options. It seems that people aren’t even considering those stores. If I wanted to hold inventory I could have easily spent 10,000 at the Factory Store.
