THE CHEAT SHEET

The Sneaker Market Perks Up

Dior x Nike | Source: Courtesy

• On July 1, Dior will notify winners of an online raffle for the right to purchase Dior X Air Jordan 1 sneakers
• The much-anticipated release was delayed by three months due to the pandemic, as were many other high-profile sneakers 
• Nike and Adidas are starting to release more shoes after a slow spring

The Dior X Air Jordan sneakers have had a tortuous road to release. First teased at the luxury brand's pre-fall show in December, the shoes were originally slated to drop in mid-March. The pandemic put an end to that plan, and marketing $2,200 sneakers would have been inappropriate immediately after anti-racism protests erupted in late May. The delays have probably worked in both brands' favor. A few pairs that have found their way to StockX — perhaps sold by influencers who received the shoes in the original marketing ramp-up — received bids topping $12,000.

The Bottom Line: Drops are a reliable way to generate hype for a brand, but Yeezy's trajectory shows they can have a downside. Consumers trained to expect a constant stream of new product are quick to move on when the flood slows to a trickle.

Hitting Pause on Reopening

Stores reopen in Newport Beach, California | Source: Paul Bersebach / MediaNews Group / Orange County Register via Getty Images

• New coronavirus cases in the US are surging to record highs, and some states, including Texas, have paused reopening plans
• An initial jump in store traffic has leveled off at well below normal levels

The Bottom Line: Brands have largely woken up to the reality that the coronavirus will be with us for the long haul, and shopping patterns may have changed permanently. 

Checking in on Department Stores

Macy's New York flagship store prepares to reopen | Source: David Dee Delgado/Getty Images

• Macy's reports first-quarter results on July 1
• The chain anticipates a loss of up to $1.1 billion, though it said newly reopened sales were performing better than expected
• Department stores began reopening in early May, with New York flagships for Macy's, Saks and others reopening last week

Macy's is preparing for leaner times by cutting costs, closing underperforming stores and laying off corporate staff. Luxury retailers are doubling down on services. Saks and Bergdorf Goodman are both offering same-day delivery to the Hamptons and private, by-appointment shopping in stores. And at every price tier, discounts are the norm (though this was often true pre-pandemic as well).

SUNDAY READING

Professional Exclusives You May Have Missed: 

• Beauty brands bow to pressure on skin-lightening lotions. Is it enough?
• Can Kanye West save Gap?
• Why fashion brands and their retail landlords are suing each other.
• Why beauty brands and food delivery services are teaming up.
• Is Facebook too big for fashion brands to boycott?
• Selling $800 party shoes during a pandemic.
• Inside Michael Jordan's eight-year trademark battle in China.
• Can the subscription box model be saved?
• When your corporate diversity strategy isn't enough.
• How luxury brands sell "exclusive" goods by the millions.

The Week Ahead wants to hear from you! Send tips, suggestions, complaints and compliments to brian.baskin@businessoffashion.com. 

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