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Calgary got a Nike Head Office, which was supposed to increase sales in the west while alleviating some of the stress on the call center and Eastern Canada office. It really hasnt done anything more than offer a place for the reps to show product to vendors. Nike has been really pushing a 5th purchasing quarter (basically having Spring, Summer, Fall, Winter, and Holiday) and really pushing the training and minimalist running segments, so showings happen alot more frequently then in the past.Originally Posted by nkwu11
Since "Nike North America" didn't quite happen, what was the compromise..... if there ever was one?
There is still some talk of a couple minor changes, but we'll see.
There are several reasons Nike has not dropped their retails as low as a few of you would like. I'll try and give some insight without getting in trouble.
The dude that said tariffs would be on the right track, if Nike didnt have a Canadian office. You can get really dinged on those, but the NAFTA and having a Canadian base of operations, they are no where near as vital to pricing as you believe. the number one reason they are still so high is shipping. Nike Canada does about 10-15% of the business the US does in an area that is much larger than the Continental US. Vendors cover a portion depending on their policy agreements, but Nike usually foots the bill, especially on booked product.
Keep in mind, the Canadian dollar is over par right now.... but if you remember 4 years ago, it was in a similar position before dropping off. A bunch of companies (Oakley and Nike specifically) reacted to the great exchange by slashing their Spring MSRP that year and ended up getting killed when the Canadian dollar dropped off later that year. They have to be hesitant to try it again.
And look at the industry in Canada.... running is the highest selling segment for the big three in Canada (Nike, New Balance, Asics). All three have really dialed the pricing to compete with one another, while maximizing sales. Basically, they have found a great point where they can experience growth, while maximizing revenue.
To be honest, I remember paying well over $200 for J's in the late 90's. The pricing we are seeing now is pretty reasonable, IMO.