We all appreciate catching a pair of Nike Dunks at a discounted retail price from time to time. But if you’re a sneakerhead, witnessing retailers like Foot Locker cutting prices on twice the number of Nike sneakers compared to a couple of years ago, this would be an immediate red alert for many reasons.
Nike Retailers Cut Nike Sneaker Prices
So, let’s give it to you straight. Nike sneaker retailers, including major ones like Foor Locker and Macy’s, have doubled the number of discounted Nike sneakers in 2024 compared to the previous two years. According to Reuters, this isn’t your typical 10% or 20% price discount; Nike retailers have, in fact, decreased prices on 44% of Nike kicks in 2024. This marks a significant increase compared to the 19.4% price discounts observed in 2022.
Now, THIS ain’t your typical Nike scandal. It’s not a case Nike can defend. Because then, the brand would’ve brought up their A-Game in both since they’re pro in the lawsuit department and all, and all would be resolved. However, such knowledge can endanger the brand’s image and reputation.
This means, what we know as the leader of the sneaker industry, can potentially lose that place if they don’t act… FAST. Because rumor has it, the brand might be losing touch in the mastery of charging premium prices. For example, several retail stores in New York City displayed a supposedly-hyped Lebron 20 sneaker reduced to a retail price of $129.99, instead of the usual $170.
In addition, the constant decrease in Nike sneaker prices led to an average price decline. Which is from $103.61 in 2022 to $79.92 in 2024. And if this ain’t the biggest red flag, we don’t know what is. Some analysts described the situation as Nike “stuffing the market” with multiple designs. And as a result, damaging the brand’s allure for consumers.
Effects of Retailers Slashing Prices on More Nike Sneakers
Let us explain how disastrous the situation can get if Nike doesn’t take immediate action. For one, it’s common knowledge that enjoying occasional discounts is an essential part of the consumer experience. But when discounts on Nike sneakers become way too frequent and the retail price becomes way too steep, the brand’s value from both. consumers’ and investors’ perspectives can go downhill.
Retailers Cutting Nike Sneakers Prices: A Consumer’s Point of View
Viewing the situation from a consumer’s perspective, a big part of the brand’s reputation and value relies on them. By them, we mean sneaker enthusiasts… Who are in the sneaker business for the thrill of catching premium and exclusive products at retail.
Exclusive sneakers not only make great collectibles and ignite the addiction of collecting sneakers, but they also make good investments in the resale market. In fact, data reveals that Nike silhouettes, including, Dunk Low Retro, have seen a decline in resale prices due to “market stuffing.” In other words, when retailers slash Nike sneaker prices because of wide product availability and lower demand, consumers might associate this with lower quality. They might even view the once-coveted sneakers as less exclusive products.
Retailers Slashing Nike Sneakers Prices: An Investor’s Point of View
This brings us to the investor’s point of view. Such a strategy can boost sales. But, this victory would be similar to ’15 minutes of fame.’ Because this is a short-term strategy. If Nike plans to keep overflowing the market with hundreds of new designs and colorways every year, sneaker retailers will keep on lowering Nike sneakers prices.
As a result, this will lead to a decrease in profit margin (profit percentage) in the long term. Not only for Nike, but also for Nike’s retail partners. And this is not what investors want. Because then, investors will start doubting Nike’s strategy of balancing between maintaining a unique brand image and increasing sales.
On the bright side, however, we may be getting some Yeezys again. This means the sneaker reselling game will keep moving forward. With a different sneaker giant leading the way for us to make crazy profits every month. So, click on the button below for a full guide on how to start a sneaker reselling business.