June 1, 2024 — Nike is making two major strategic shifts—rejoining Amazon’s marketplace after a five-year hiatus and increasing prices on select products—as the sportswear giant seeks to revive declining sales under its new leadership.
The company confirmed its return to Amazon in the U.S., reversing a 2019 decision to exit the platform in favor of direct sales through its own website and select retail partners. The move comes as Nike faces growing competition from rivals like Adidas, New Balance, and On, which have eroded its market share. Last quarter, Nike’s global revenue fell 9%, with a steep 17% drop in China, according to its latest earnings report.
“We’re investing in our marketplace to ensure we meet consumers wherever they choose to shop,” Nike said in a statement. Alongside the Amazon relaunch, the brand is expanding its retail partnerships, including a new collaboration with French luxury department store Printemps, which recently opened its first U.S. location in New York. Nike is also testing experiential retail concepts, such as a recently debuted Gen Z-focused store with Urban Outfitters.
Price Hikes Take Effect
Starting June 1, Nike will raise prices on select apparel and footwear by up to $10. Shoes priced between $100 and $150 will increase by $5, while premium models above $150 will see hikes of up to $10, according to a source familiar with the decision. However, children’s products, items under $100, and iconic lines like Air Force 1s and Michael Jordan-branded merchandise will remain at current prices.
The company attributed the adjustments to “seasonal planning” rather than rising U.S. tariffs. Analysts suggest the move aligns with Nike’s broader strategy to boost profitability by tightening supply of legacy sneakers like the Air Force 1 and Pegasus, pushing shoppers toward higher-margin products such as the latest Air Max running shoes.
New Leadership, New Strategies
Since appointing veteran executive Elliott Hill as CEO last year, Nike has pursued aggressive turnaround efforts, including a high-profile activewear collaboration with Kim Kardashian’s Skims brand, set to launch this spring. Yet challenges remain—Nike’s stock (NKE) has fallen nearly 20% year-to-date as investors await signs of a sustained recovery.
With its return to Amazon and selective price increases, Nike aims to reclaim lost ground in an increasingly competitive market. Whether these measures will reignite growth, however, remains to be seen.
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