Nike (NKE.N) announced on Wednesday that it will be raising prices on select products starting next week, with price hikes ranging from $2 to $10 on apparel and equipment. The price increases will apply to products for adults, including footwear, and vary based on the price range of the items.
Price Increases and Product Categories
For shoes priced above $150, Nike will increase prices by up to $10, while those priced between $100 and $150 will see a $5 increase. Products priced below $100 will not experience a price hike. Nike’s iconic Air Force 1 shoes, which are priced at $155, are exempt from this price increase. The company stated that these price adjustments are part of its regular seasonal planning and business evaluation.
Nike’s Return to Amazon
In addition to the price increases, Nike is making a notable return to Amazon (AMZN.O) after a six-year hiatus. The footwear brand plans to directly sell its products on Amazon’s U.S. marketplace, aiming to regain market share from competitors. Previously, Nike halted its direct sales on Amazon in 2019, shifting its focus to its own websites and stores. Independent merchants have continued to sell Nike products on the platform, but now, Nike will manage its own listings directly.
Changes for Amazon Merchants
As part of this shift, Amazon has informed some third-party merchants that it will restrict them from selling certain Nike products starting July 19. The move is designed to streamline Nike’s sales on Amazon and ensure better control over product availability. Amazon has provided an extended period for affected sellers to clear their inventory of overlapping Nike items.
Global Impact of Nike’s Strategic Shift
Nike’s return to Amazon aligns with its broader strategy to expand its market reach and regain control over product distribution. This decision follows similar moves by competitors like Puma (PUMG.DE), which also faces challenges from tariffs and changing market dynamics. As of 2024, North America remains Nike’s largest market, and this new initiative is expected to bolster its sales as it navigates evolving consumer trends and retail dynamics.