09 Jun Keen Making Price Cuts To Clear Inventory, Support Retailer Discounting
Keen Footwear is creating a buzz in the market as the brand announced to consumers and retailers last week that it is offering lowered prices on nearly every Keen shoe available through retail partners and their retail site.
As inflation continues to impact major retailers across industries and prices remain high, Keen said it is quickly responding to a more stabilized supply chain and driving down prices for its loyal customers.
“As a company dedicated to putting its fans first, the brand felt it was crucial to pass along savings to customers,” the company stated.
Keen said the pricing decrease is due to today’s market conditions and the fact that Keen owns 40 percent of its supply chain, from sourcing to factories to distribution centers, “strategically establishing an efficient and agile system” that enables the brand to make this move. Heavy inventories at retail and the resulting de-stocking effect felt by the majority of brands that have reported the first quarter have hurt brands and retailers as they deal with heavy discounting as the market attempts to clear the product pipeline.
According to a survey in January by Circana (formerly IRI and The NPD Group), 56 percent of consumers said they had delayed or skipped a footwear purchase or selected a less expensive option in the past six months due to price increases on either footwear or other goods. That figure is up from 52 percent in July 2022.
Circana also noted that households with kids had pulled back on footwear spending more than those without, as parents are forgoing footwear purchases for themselves.
“Families are obviously feeling the pressure from inflation,” said Beth Goldstein, footwear and accessories analyst at Circana, in the report. “Without the government assistance that many households with children had previously received, they are now prioritizing their kids’ footwear replacement needs over their own.”
Keen said the brand could consider its fans at every stage of the shoe-making process by not only delivering on quality, performance and durability but also price and exceptional value. “Now that the supply chain has stabilized in the U.S., Keen is rapidly responding and adjusting to change with the larger macro environment,” the company said in the statement.
Speaking with CNN earlier this week, Keen president John Evons said the brand is reducing prices by 5 percent across the board. “We believe we are doing the right thing to help people in this inflationary environment. We want people to continue to enjoy the outdoors and be able to go to work with safe shoes,” Evons told the news agency.
“Most brands are reacting to consumers pulling back by offering increased promotions and not bringing the original product price down,” Circana’s Goldstein told CNN. “This is unique, and it will be interesting to see if other companies follow suit.”