Sneakers, trainers, kicks: whatever you call them, there’s a big market for running shoes these days. And Walmart plans to cash in, recently announcing a partnership with StockX, an online marketplace that specializes in collectible, limited edition shoes.

The secondary market for shoes has long been growing, but it experienced a major bump in 2021, when coveted models enjoyed an exponential increase in value. The most popular sneaker models include Nike Air Jordans, New Balance, and Asics, all of which will be available through this new partnership.

The announcement also signals an expansion of Walmart’s online presence. On its website, the conventionally cost-focused retailer already has started offering premium brands that are not stocked at its physical stores, including collectibles and high-end beauty lines. Reports suggest that the company hopes to continue diversifying its online product offerings in the future, adding more brands and product categories.

But even as Walmart’s online business has grown, with a 30 percent increase over the most recent four quarters, it is still substantially smaller than some of its competitors. Earlier this year, Amazon captured .8 percent more of consumers’ retail spending in just a single quarter.

Still, this deal signals a promising next step for the retailer. And StockX will get to test the marketplace, while reaching a relatively new population of customer that have been loyal to Walmart for years.

Discussion Questions 

1. What are the ways in which Walmart will benefit from this new deal? How about StockX?
2. Do the benefits of this deal seem worth the potential pain points for retailers, including the problems associated with integrating supply chain models? Why or why not?

Sources: Jaewon Kang, “Walmart Bets on Collectible Sneakers to Grow Marketplace Service,” Bloomberg, September 4, 2024; Nate Delesline III, “Walmart Expands Marketplace Offerings with StockX Sneaker Deal,” Retail Dive, September 5, 2024; “Walmart Teams with StockX to Bolster Marketplace,” PYMNTS, September 4, 2024