Air Jordan Shoes Too Expensive? This Retailer Lets Consumers Rent To Own, 'Walk Now, Pay Later'
Portfolio Pulse from Chris Katje
Nike Inc's (NYSE:NKE) Air Jordan shoes, a result of a lucrative deal with Michael Jordan, are now available for rent-to-own through Rent-A-Center, part of Upbound Group Inc (NASDAQ:UPBD). Rent-A-Center offers Air Jordan 5 Racer Blues for $19.99 a week, with a total cost significantly higher than purchasing outright. This move aligns with the growing trend of buy now, pay later services. The story of Nike's deal with Jordan was depicted in Amazon.com, Inc's (NASDAQ:AMZN) film 'Air,' which received multiple award nominations.
January 17, 2024 | 7:05 pm
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Amazon's film 'Air' about Nike's deal with Michael Jordan has received multiple award nominations, potentially increasing viewership and positive association with the Amazon brand.
While the film 'Air' is indirectly related to Amazon's core business, its success and award nominations could enhance Amazon's reputation in the entertainment sector and have a positive, albeit limited, impact on the company's stock.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50
POSITIVE IMPACT
Nike's Air Jordan brand continues to expand its market reach through Rent-A-Center's rent-to-own offering, potentially increasing brand visibility and sales.
The rent-to-own model may make Air Jordans accessible to a broader customer base, potentially increasing sales and reinforcing brand loyalty. However, the financial impact may be moderate as this is just one of many sales channels for Nike.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Upbound Group's Rent-A-Center offering Air Jordans for rent-to-own could attract new customers and increase revenue, but also risks criticism for the high total cost to consumers.
Rent-A-Center's new offering taps into the popular buy now, pay later trend and could drive traffic and revenue. However, the high cost of the program compared to outright purchase may draw negative attention, potentially impacting customer perception.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80