Nike is making a comeback to Amazon after a hiatus of over five years and increasing prices on certain products as its new CEO aims to address a decline in revenue.
In 2019, the apparel brand announced it would withdraw its products from Amazon in the U.S., prioritizing sales on its own website and select third-party retailers. However, Nike’s sales have decreased in recent years, prompting the company to explore new growth opportunities.
“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,” the company stated in an announcement.
In addition to returning to Amazon in the United States, Nike is adding new retailer partners, such as Printemps, a French department store that recently opened its first US location in New York. Nike also said it was working to elevate “retail experiences,” a likely reference to a new concept store it debuted with Urban Outfitters this week that sells Nike shoes and targets Gen Z shoppers.
Nike’s price hikes, meanwhile, will kick in on June 1. The company didn’t mention higher US tariffs as the reason, but said in its statement that “we regularly evaluate our business and make pricing adjustments as part of our seasonal planning.”
Various pieces of Nike apparel and equipment will increase in price by as much as $10. Shoes priced between $100 and $150 will get a $5 increase and shoes above $150 will see increases up to $10, according to a source familiar with the decision.
However, several items won’t get a price increase, including children’s apparel and footwear, products priced under $100, Air Force 1 shoes and Michael Jordan-branded clothing and accessories, the source added.
Nike sales have suffered as competition from rivals like On, New Balance and Adidas has heated up. The company’s global sales dropped 9% last quarter, including a 17% drop in China, Nike said in its most recent earnings report.
The company is also trying to recover from strategy mistakes. It is scaling back the supply of its classic sneaker lines Air Force 1 and Pegasus to juice demand in order to sell the sneakers at full prices. Nike also wants to push shoppers to buy new, higher-priced Air Max shoes, designed for running.
Last year, Nike named Elliott Hill, who had previously worked at the company, its new CEO. One of his biggest deals so far is inking a collaboration with Kim Kardashian’s brand Skims for a new activewear line, which was due to be rolled out this spring.
Shares of Nike (NKE) have fallen nearly 20% for the year.
The CNN Wire™ & © 2023 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.
