Nike Cuts Ties with Several Small, Local Retailers - EFFECTIVE JUNE 30, 2013 - MORE TO COME

[1ix8vi]

A few of the mom and pops around my way usually sell to their FRIENDS and family or their resell buddies. The only time you can walk in off the street and cop a jordan from them is when no one wants them (crimson 3's). They haven't been affected by this new practice, but I am seeing major retailers that don't normally even carry Jordan's carry them in the last couple of releases. Coupled with the heavy loads of late, I believe nike/jordan brand are trying to keep the game as honest as they can. Death to the resell game is coming.

What exactly is this "new practice"?

 

[Mr Dink]

just quick question ; is it legal or illegal selling nike shoes above MSRP for small stores?

No. They bought the product, they can do whatever they want with them.

 

[alp]

The IMPOSSIBLE can happen...

Enough people complained about my local mom and pop after some recent releases that nike threatened to take their account away. They now release on RD and charge retail. I'm not saying to go out there and snitch... But hey, I just got my 2nd pair of grapes for retail, when they've been known to charge at least $300 for any hyped shoe.

that;ll be short lived, take advantage of it while you can

 

[grayskyz]

What exactly is this "new practice"?

Just found this thread. A lot of good posts. Good points by 1IX8VI and BIP Roberts.

Nike is certainly making it harder for the smaller guy to stay profitable. They already know whats going to sell. Shoes like Jordan retros and most AF1's (contrary to "sneakerhead" opinions) will always sell. But what they're trying to do now is ramp up apparel and other shoe styles. Almost 50% of orders from owners are apparel now. They're requiring that certain shirts are bought to go along with a release. In some cases, they gotta order apparel for shoes they won't even get allocations for. I'm still setting GMP shirts in spots that never got em.

They also wanted the owners to update their displays, store layouts/modeling, add the Nike-recommended shelves and nesting tables, and replace older styled hang racks with their recommended racks for hanging apparel. On top of that, they gotta increase orders on all the inline JB shoes, and overpriced zoom turf jet's and so on.. that and most people just don't care about.

Owners were basically told all of this in the quarterly meetings through last year. They were also instructed to take pictures of the actual store and displays after the updates and send the final shots to nike/JB for review. Now guys are getting their Retro allocations cut for various reasons like small square foot space, outdated displays, and friggin floor panels.

These upgrades and changes cost serious money. And they have to weigh those costs while they gotta mark down some ugly a** $185 max flyposites to try and break even on the 6 month old shoe.

I get everyone's frustrations about price gouging and back door tactics. But if that was really a concern Nike would have let all the owners know at their quarterly meetings, and you'd be seeing most stores tighten up everywhere. From the small mom and pop joints to the high school kid at the big mall store counter. Not just stores in one small region. I can't speak for the stores that are closing in the Philly area, but not all mom and pop stores sell early or price gouge. Their Nike account covers almost all of their entire sales and they're not trying to lose it with back door tactics.

Basically they haven't had the pressure put on them yet

 

[fahqu001]

Damn small world homie. U must got a navy chick out in the beach

Have a safe trip my dude

Haha. No way. My friend I grew up with is a married to a SEAL out there. Nice guy and doesn't bring up work unless you specifically ask him a question about his job. For the most part just a down to earth country boy from FL lol

 

[bcdagr8]

wow thats great just cut the lil man out

 

[mr s j king]

Just got word that a spot that ALWAYS sells early and for WAAAAYYYY over msrp, is stopping IMMEDIATELY.
First come first serve starting Saturday. No more shoes plus an additional purchase, so they can move the matching apparel.
Now its buy the shoes and get 20% off apparel. I'm sure this is just a short term change, but change none the less.

 

[160jordansdeep]

I dont get a bad vibe from jamaican ave but they do over charge

Whats some good spots that dont over charge alot?

there is no such thing in nyc unless you want to camp at jimmy jazz or footlocker/finishline all night

 

[160jordansdeep]

Please keep in mind that these independent stores allegedly are losing their accounts due to the lack of updating their physical locations. I think the real reason is being avoided by a few posting on here.

he's right and as i said before in the thread

nike wants retailers with wooden floors & marble sales counters

 

[alp]

just curious, about these spots on Jamaica ave. and Fordham road etc. I know they charge ridiculous prices, but do they sell taobao pairs or are the kicks legit? All the talk in the concord thread has got me a little paranoid now

 

[milhaus007]

I dont't feel bad for these shops that end up closing down.

 

[sunshineblotters]

You are right. It is because of inflated prices, early releases, and shadow ebay accounts. They started with stores with SB accounts not too long ago

 

[fresh out dabox]

any ny stores in the city got the boot?

 

[irishbaz]

All you gotta do is look at the sneaker game in Hong Kong... about 2 years ago the whole Jordan game imploded - one of the "main" cartels went out of business and the whole sneaker scene imploded. There are only 1-2 stores selling JB in HK now even the nike store on sneaker street are only selling CP3s and Melos - they may get the odd retro but its gone before the store opens.

U gotta wonder is this a short term solution as if you force your buyers to go on line your cutting out the essence of buying sneakers. Most of us at some point have tried on multiple different pairs of sneakers in store and made the decision based on comfort/feel look on feet etc - Nike is now effectively cutting down on retail spots where you can go in and try on shoes talk to the sales guys get info on the shoes first hand etc.I know dodgy practices go on for hyped releases but this goes on even in niketown stores, to limit buyers to on line sales is not customer focused.

I would say the best way to deal with this is limit the range of shoes you issue to these stores - limit their accounts on the retro Jordan releases but keep them stocked on GR cus in some hoods these are social places where guys come to talk sports/fashion etc while keeping people employed.

Nike acting like car manufacturers now forcing dealerships to upgrade the showroom or loose their account.

 

[160jordansdeep]

any ny stores in the city got the boot?

i doubt it

 

[160jordansdeep]

just curious, about these spots on Jamaica ave. and Fordham road etc. I know they charge ridiculous prices, but do they sell taobao pairs or are the kicks legit? All the talk in the concord thread has got me a little paranoid now

some of the indian stores do get b grades at Fulton st Fordham and Jamaica ave

 

[fresh out dabox]

some of the indian stores do get b grades at Fulton st Fordham and Jamaica ave

i thought B grades had a red stamp with a capital B on the tag.

 

[scooterman87]

This will weed out the stores that sell B-grades and Variants but it will make the lines even more longer at footlocker and etc.

 

[160jordansdeep]

i thought B grades had a red stamp with a capital B on the tag.

they get them from the early release websites and buy in bulk

also none of this has taken effect in nyc with nike talking accounts away at least at any of the crooked stores i know of

 

[wooly11]

With The Culture Fully Globalized; this seems fitting

 

[boss336]

Man I been wait on nike for 60 days for approval for my store account.....I can't open without them