With new tariffs on the horizon, Academy Sports & Outdoors is working to keep prices low on brands like Nike and Adidas. Proposed tariffs could range from 10% to 60%, heavily impacting imported goods.
Key Strategies:
- Keeping Prices Low: Academy will continue pricing items like Nike shoes below the manufacturer’s suggested retail price (MSRP) to ensure value for customers.
- Diversifying Suppliers: The retailer reduced its reliance on Chinese imports for private-label goods from 70% in 2019 to 50%. This limits exposure to high tariffs.
- Adding More Products: Academy plans to expand its Nike product lineup in half its stores, aiming to attract more shoppers.
- Adapting to Trends: With customers prioritizing value, Academy’s competitive pricing aligns with shifting spending habits.
Despite these efforts, tariffs on big brands like Nike and Adidas could still raise costs. This would affect both Academy and its customers.
Industry Impact
Other retailers, like Costco, are taking similar steps. They’re negotiating with suppliers and changing product offerings to manage costs.
Academy’s actions show the importance of preparation and adaptability in supply chain management. Staying flexible is key to surviving tariff challenges and keeping customers happy.