Footlocker returns their unsold stock to Nike?

[missmymoney]

I was at the outlet and saw FTL stickers all over their stock. I have never seen this before? Is this a new thing?
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[freeze]

Since forever.

 

[blastercombo]

My lord!!!! Is water still wet?!?!? I need answers!!

 

[thunderchunk69]

footaction does too, but they also have outlet stores which is confusing.

 

[donpoppa]

All stores do it.

 

[tr1ll]

My lord!!!! Is water still wet?!?!? I need answers!!

Seriously OP, where did you think the outlet stuff came from??

 

[airthompson]

All store return unsold items to vendors, and vendors send items to outlets.

 

[rodrigofresh]

This happens for almost all non perishable items.

 

[Gordonson]

Why the hell is this in General?

 

[ninjahood]

RTV = return to vendor

 

[b20 eg8]

Yes.. Nike buys it back at a lower cost than what it was sold to Footlocker. Finishline. Etc.. Then sends it to their outlets for generally no less than 30% off Suggested Retail.

 

[donpoppa]

Depending on the company some call it RMA, RGA, RA.

 

[missmymoney]

Yes.. Nike buys it back at a lower cost than what it was sold to Footlocker. Finishline. Etc.. Then sends it to their outlets for generally no less than 30% off Suggested Retail.

Thanks for that answer. I work at a retailer and we can't send things back. We just end up discounting it until it sells.

 

[missmymoney]

Seriously OP, where did you think the outlet stuff came from??

Unsold stock.

 

[donpoppa]

 

Yes.. Nike buys it back at a lower cost than what it was sold to Footlocker. Finishline. Etc.. Then sends it to their outlets for generally no less than 30% off Suggested Retail.

Thanks for that answer. I work at a retailer and we can't send things back. We just end up discounting it until it sells.

it all depends on the company and the rep. most reps dont want to do a RA because they get commission and RAs deduct from it.

 

[missmymoney]

it all depends on the company and the rep. most reps dont want to do a RA because they get commission and RAs deduct from it.

Oh ok. That makes sense. So as a salesperson you don't want to convince an account to take more than you think they can sell bc you will end up losing the commission on the returns. Nike probably loves the opportunity to sell the items twice though. I bet they make back their per unit cost even though they bought them back. Then whatever they sell them for at the outlet is almost pure profit.