Retailers slashed prices on twice as many Nike sneakers in 2024 than two years earlier, endangering the American sportswear giant’s typically strong pricing power at a time of stiff competition from rival sneaker brands, according to analytics firm Vertical Knowledge.
Researchers compiled online pricing data from a sampling of eight national chains — Foot Locker, Dick’s Sporting Goods, Macy’s, among them — and found that the retailers slashed prices on 44 per cent of their Nike sneakers on average in 2024. That’s up from 19.4 per cent during the comparable 2022 period, according to Vertical Knowledge data.
The trend marks a break from the past, when Nike retailers enjoyed the ability to sell through their Nike inventory at full price — particularly lifestyle shoes such as Nike Air Jordan 1 Retro High. Nike’s full retail prices range from roughly US $ 50 for basic Nike running shoes to US $ 200 or more for special-release Nike sneakers.
Some retailers’ moves to slash prices on Nike sneakers could spell trouble for Nike, the world’s leading sportswear company. “They’re a company that’s been masterful at charging premium prices to the mass market,” said Brian Yacktman, president of YCG Investments, which owns Nike shares.
Discounted Nike shoes were on display at a Foot Locker in New York City, where Lebron 20 basketball sneakers were reduced to US $ 129.99 from their original price of US $ 170 and Nike Air Max styles were on sale. At Macy’s flagship store in Herald Square, multiple Nike Air sneakers were also on sale, including the Air VaporMax and Air Huarache.
The average price of Nike sneakers at major retailers like Macy’s fell to US $ 79.92 in early 2024, from US $ 103.61 in the first quarter of 2022, according to the data. According to Nike’s most recent annual report, Nike sells its products wholesale to “thousands of retail accounts.”
