What happens to overstock/ overproduced / shoes that don't sell? (post outlet sales)

jbv1 · Jun 21, 2012

They have time on their hands to wait out the buyer... it's a waiting game that they are more than patient about recouping their costs in time...

Nike knows that no matter how horrific the colorway, or how bad the ID turned out, or how the anticipated release flopped, someone will come in at the right price to scoop them up. No way I can see them writing off shoes unless it's a PR campaign to help the homeless or disadvantaged or make a poor inner school a new "regrind" basketball court

Like others have stated Nike will let the shoe sit in a store/outlet until it gets to the point they just say the hell with it & blow it out at some crazy price point.... US outlets more so than our CDN market -

(side rant) - It infuriates me that just because we are a smaller market that we pay some sick prices for so-called outlet bound shoes whereas US guys (and it KILLS me to read the outlet posts oldsole73 drops) can walk into a Nordstrom Rack/Marshalls/or call up a Nike clearance outlet and get some crazy deals SHIPPED VIA PHONE ORDERS.

I can't ever see that happening here in Toronto let alone Canada. At least we sort of have it better price wise than EU/JP/AUS sometimes. For the US guys online who don't know; there are probably more Mom & Pop stores selling crazy variety of Nikes in NYC/Manhattan alone than there are Foot Lockers/Champs/Athlete's Worlds across Canada.

To the OP: You just have to check out Si Vous Play (local spot with occasional steal pricing on clearance Nikes) or Vaughan Mills/Niagara @ the right time... Have you ever worn the AM95 Mitas I traded you

?

just4kicks212 · Jun 21, 2012

Originally Posted by Sixfoot nathan

not too long ago Nike turned out about 4-5 colorways of a model, nowadays its 15-40.
im seeing more signature shoes (bball) and top tier shoes at outlets, i dont believe that people are buying the remaining stock.

what happens to all the leftover shoes that dont sell?

do the shoes get sent back and shredded?

they get sold... I will give you exactly what happens...
company buys shoes from nike... company sells shoes... shoes dont sell well... 1-2 months of the shoe not selling the higher traffic stores ship out the product thats not selling to other lower traffic affiliate stores and or a better selling demographic ... if it doesnt sell at regular price within the 1st 2 weeks of getting to the new store they mark it on sale again... if it doesnt sell the company sells the stock back to nike at a fraction of what they paid for it to try and not be to bad in the red... nike gets the product and sends it to its distribution centers and from there the centers ship the product accordingly to its nike outlets and or clearence outlets... when it reaches the outlets and clearence store the retail price is automatically marked down (for example $100 shoe would cost like $80-$70 at the outlets)... then if it does not sell each nike outlet/clearence store get a monthly markdown money initiative (it can be monthly or even every other money it depends on the district) so to give you an idea... lets say nike gives one store $8,000 for footwear markdowns $4,000 for apparel and $1,000 for equipment... so now a employee given the job (a Lead Or Department Manager) start marking down shoes that don't sell well (or shoes they would like to see marked down... the rule is to only mark down shoes that don't sell AT ALL or shoes that have less then 25-30 pairs on hand in stock)... usually if a shoe is $100 they only take off $20 aka 20% but the most I've seen marked down is 40% so $40 (the 1st mark down) if the person was to do more then 50% of the suggested ticket price it raises red flags in the system and you will get in trouble and probably talked too...

now if you think about it you have $8,000 for footwear... lets say we have 1 style of shoe 25 pairs that is going for $100 that isnt selling... and I want to mark it down $30... so now 30 X 25 = $750 used for footwear... $8,000 - $750 = $7250 (that is the amount u have left to use on footwear)...

so my point is the nike outlets/clearence store get to mark down these shoes monthly.... even if they have to mark down the shoe ever month for the next 10 months they will lower the price until all pairs are sold out... I have seen the jordan retro 8 low (that brown and pink pair for women) get marked down to $9.97 and then it was still struggling to sell LOL...

this also works if u want a shoe and u work at the store.. for examle.. lets say the store gets 100 pairs of lebron elites and 10 employees each grab a pair to stash in the back... and the other 90 pairs sell out the same day.... when that month markdown money comes in the employees can ask the person doing markdowns to lower the price cuz there r only 10 pairs left in the store... (even thou its against the rules... it happens at all nike stores)... so lets say the elite at the outlet was $200 and the person marked the elites 40% down so now there $120.... and lets say 5 of the employees r happy with that price and buy it with the additional 30% off and the other 5 say "nah i'll wait".... so now they wait a whole other month (so 2 months in total now) and more markdown money has came now and they ask the person doing it to mark down the last 5 pairs... so again they get it marked down 40% so now the elites r $72... and technically the shoes belong on the backwall aka hash wall (and lets just say there is a back to school sale going on so 20% of all the stuff on the backwall) so now u got a extra 20% off the elites that r already $72 after 2 markdowns and it comes out to roughly $14 off more so $58 and then u add the employye discount of 30% at an outlet and u get roughly $18 off the shoe so now the elite only cost you $40....

so yeah thats how it works and how nike sells EVERYTHING at any price eventually

prison mike · Jun 22, 2012

Originally Posted by truongxlong

cheaps shoes can be found at cheap places. just depends on how cheap the nike shoe can drop before it gets sold. you wont ever see finishline or footlocker selling a nike shoe that mspr for 100 under 50.

Brah, what the hell are you talking about?