Nike reported an 11% revenue decline in its North American segment due to supply chain bottlenecks caused by global container shortages and U.S. port congestion.
Source: Nike Misses Revenue Mark As Covid-19 Bottlenecks Continue To Plague Retail Brands
One in-store visit and one picture does not provide proof of Rose’s discussion on Nike’s supply chain issues. I would have to travel to different stores in a variety of regions, right? Or could I call on past experiences with the same store for extended period of time? The Nike Clearance Store in Memphis has been a destination for buyers from resellers to regular consumers who heard of the amazing deals in the store. This store held gems for years: Celtics vs Bulls Jordan 1 DMPs, Cool Grey 11s, and prior to Covid-19, Soulland Dunks, Familia Blue Ox Dunks, Yin Yang Jordan 1s and countless Flyknit Racers filled the shelves. I posted pictures recently of the shelves loaded with Martine Rose and Fear of God collab sneakers during the holiday season last year. Covid-19 had disrupted the supply chain, but the Clearance Store was still loaded with product. I wonder if that product was from RTVs however from chains Nike severed ties with…
The athletes in the store had no problem at all keeping shelves filled. As soon as a pair of shoes was pulled off of the shelf, it was replaced with new product. It’s always been this way, until recently. Recent retail dives have seen the Clearance Store in one of the worst inventory displays I’ve ever seen at any Nike retail outlet. I’ve had the opportunity lately to visit their Employee Store and Factory Store and while the Factory Store shelves are stocked, the low end product has always been available there. The Employee Store is rampant with redundant displays. An entire wall through section has only one style available when in the past, prior to quarantine, there would be 6 different styles on each row which would constantly be restocked. Yesterday, this was what the Clearance Store looked like:
There has never been a time in the last 12 years where this store looked this way. If you use the link above you can read an excellent explanation of what has happened to create the bottleneck contributing to Nike’s shortage, but if you read this and then go back to articles written on Champs, it becomes evident that the supply chain issue isn’t a problem that will be resolved quickly.
If this Champs Wall is an Indication of Foot Locker’s Upcoming Q1 2021 Earnings …