In the last two years as a result of the pandemic and supply chain issues retail stores have been struggling to keep up their inventory. With sneakers it is almost impossible to find a specific shoe at the mall anymore. Recently, Nike and several other stores announced that this is going to get even worse. Aside from supply chain issues, Nike has begun to cut out retails and focus on selling in their own stores and website instead. In recent years Nike has pulled their products from DSW, Macy’s, Urban Outfitters, and Zappos. The most recent retailer however is much more alarming. On March 1st Footlocker announced that “no single vendor is expected to represent more than 60% of its business this year.” This might not seem significant but in 2020 Nike accounted for 75% of their sales. The announcement also caused Footlockers stock to fall 35% in a day.
In my opinion this is just the beginning of what is to come. With sneakers becoming so popular Nike is starting to realize that they no longer need retailers to push their product. Selling only directly to customers saves them huge amounts of money. For the average consumer this is a big problem as most people do not live near a Nike store and rely on retailers to buy shoes.
3 thoughts on “Big changes In Sneakers”
Reading this was very interesting because I am aware of the national supply shortage due to the pandemic. I was wondering how it would affect the sneaker industry. In addition, I had my own experience of a food shortage on campus this year when the Down Under did not have any onions for a period of time.
I agree with you that this is a problem because Nike stores aren’t as common to find as a retailer that sells Nike shoes. I think this could even make it harder to get popular shoes like SB’s and Jordans.
Wow, I did not even know this was such a big issue. I usually buy my shoes at different stores and not just the Nike store.