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🛍️ Consolidation Crisis
Over the last couple of years, there’s been a shift in the in-store shopping environment for sneakerheads. When stores open up, they start with one location, but there is a shrinking number of stores with only one location. Many owners either find success and open a second (and third, and fourth) location, or they don’t find success and go out of business before opening a second store. So, what’s sending the resale stores with one location out of business?
Creating an economy of scale is a large part of resale. Shipping, fee structures, and buying inventory in bulk all allow stores with more locations and more inventory to have a lower cost per unit than mom-and-pop shops. Also, brand recognition and social following typically grow as a store grows its operations, and lacking these can be hurdles for somebody running their first store.
Clearly, though, some storeowners are able to get over the hump, and while there are many factors, a big part of a store’s success only comes down to a few factors:
- Organization is of utmost importance when opening a store. Knowing what’s in stock, having a system to find it quickly, and streamlining the customer experience is a great place to start for in-person shopping. Watching margins, expenses, and revenues is also essential for succeeding in any business.
- Platform variety is a game-changer. Having items listed on a website, on platforms like StockX, eBay, and elsewhere, as well as having it available in-store opens more opportunities to sell product. Organization is key here, too.
- Lastly, being proactive with growing business is likely the best trait a new storeowner can have. Make connections in the community. Host events. Run sales. Grow a social presence online. Thinking that business will come to you never works.
None of these factors are related to the location of the store, sourcing of product, margins, or anything that has to do with sneakers. The reality is, as sneaker resale continues to grow, things are getting more professional because we are dealing with experts who have been doing it for decades now. Good businesspeople are rewarded, connections are valued, and keeping a close tab on finances, inventory, and staff is more important now than ever.
And in today’s game, the stores who run a tight ship, product-by-product, dollar-by-dollar, and customer-by-customer, are the ones we see do well and grow.
Written by Mateo Moyon