Retail Isn't Dead...Foot Locker Invests In Reselling
If you haven't read the news today, Foot Locker made its biggest investment in its history by investing $100M in the secondary marketplace app GOAT. Now this is huge news for two reasons.
The whole idea that retail is dead was a marketing click-bait strategy that was created to get views for certain news outlets with no significant data to back it up. Retail isn't dead but it is changing as with any industry and this is why the traditional name department retailers have struggled.
I remember the days when professionals who were outside of the sneaker realm would mock kids lining up for just a pair of shoes. I had conversations with professional executives who mostly laughed at me when I mentioned the secondary marketplace as a business model. 2019 and one of the most famous footwear retailer has invested in a sneaker reselling app. Let that sink in.
Looking Ahead After This Investment
As for a small business owner or if you operate online reselling, this is both good and bad news for you. The good is that GOAT will expand its inventory and now will get more buyers shopping on the app.
The bad is that there will be a lot more resellers on the platform and the lowest price will always get the first sale. Think about the current age of retail... Amazon beats other retailers primarily because of its low price strategy. This is the same concept with reselling and will soon eat away at profits for you resellers out there.
Share your comments below and let me know what you think!
Told by Christian