Nike Inc. last week announced it would raise prices on some adult apparel, equipment and footwear. This enormous price increase will go into effect June 1st. The retailer said the move to change its pricing model would occur during the company’s “continued assessment of the business.” Adult clothing and equipment will be $2–$10 more, premium footwear models will go up by up to $10.
Nike is changing its pricing strategy along with the other moves to support its marketplace strategy. Importantly, these amendments will not apply to children’s products or products costing less than $100. Footwear and athletic sneakers with a price point between $100-$150 would increase by $5. At the same time, footwear over $150 will increase by up to $10. The legendary Air Force 1 franchise has been impervious to this recent round of price hikes. Likewise, all Jordan apparel and accessories will continue to be exempt.
Nike’s approach embodies both those fundamental values of delivering better quality products, as well as protecting the lion’s share of consumers from innovative experiences customized just for them.
“We regularly evaluate our business and make pricing adjustments as part of our seasonal planning,” – Nike
The move to increase prices is in line with what the retail sector overall is doing. It reflects the dynamic economics in production and the market for products. Nike is rolling back prices on some adult styles. This strategic move enables the firm to stay at the top of the competitive sportswear market as one of the top retailers.
Aside from the direct price hikes, Nike is pivoting to establish better consumer experiences by further investing in its marketplace. The home delivery leader has long talked about the value of meeting people where they are with personalized choices.
“Nike is investing in our marketplace to ensure we’re offering the right products, best services, and tailored experiences to consumers wherever and however they choose to shop,” – Nike
Many retailers are still grappling with the double whammy of recent supply chain kinks and shifting consumer shopping preferences. In answer, a pivot point is occurring. With independent sellers typically being the ones selling Nike inventory across marketplaces including Amazon. Now, the sneaker giant is looking to grow its direct offerings even further.
