Inventories for NIKE, Inc. were $9.7 billion, up 44 percent compared to the prior year period, driven by elevated in-transit inventories from ongoing supply chain volatility, partially offset by strong consumer demand during the quarter. NIKE, Inc. Newsroom: Press Releases, Product Announcements and Media Resources — NIKE, Inc.
Nike’s recent announcement sent shockwaves through retail. The brand has an abundance of inventory on hand and will have to offer promotions and allow retail partners to offer sales greater than the traditional 20% off of the SRP to clear out the apparel and footwear which is arriving off-season. Sneaker Impact exists in a space to assist brands and retailers like Nike who are encountering inventory supply issues unlike any other time in history due to the pandemic and issues with the supply chain.
There are going to be a massive amount of returns as consumers use their homes as showrooms. When items are heavily discounted fans of the brands will try items they may have passed on at full retail price. In many instances excess inventory has been discovered to be destroyed by brands instead of utilized in more positive capacities. Those returns or damaged sneakers could end up in a return loop, but via Sneaker Impact’s logistics program assistance in moving those items into non-competitive markets is available. There is an opportunity for Nike and other retailers to safely and productively reach a smaller market while also assisting in developing microeconomies.
The Industry’s Support and Logistics Partner for Returns and Damaged Sneakers | Sneaker Impact
CNBC offers insight into what appears to be a strong headwind against the Swoosh: Nike (NKE) earnings Q1 2023 (cnbc.com)
To learn more about Sneaker Impact’s logistics and assistance programs click here.