Sitting behind the counter at Just Imagine, his sneaker and clothing store at the Maplewood Mall, Dave Frazier said the sneaker reselling market is going through a pandemic of its own years after reaching its peak during the actual pandemic in the early 2020s.
Back then, the sneaker resale market in the Twin Cities was on fire, led by BIPOC communities and young people fueled by stimulus checks and remote work opportunities, but now Frazier said resellers are having to adapt to changing consumer habits.
Sneaker resellers are condensing their inventories, lowering premiums, storefronts around the metro are closing and resellers are branching out into different markets in an effort to stay afloat as the profits tied to high-end sneakers continue to dwindle.
“It’s all about supply and demand,” Frazier said. “Okay, if a customer is looking for something right now, they’re coming into the store, but if they got patience, they will order online [to save money].”
The sneakers sold by resellers are called “deadstock” sneakers, which are shoes that are new and unworn that are no longer available for purchase from retailers, according to Frazier.
Resellers like him focus their efforts on obtaining limited-release sneakers from popular brands like Nike, Jordan, Adidas and New Balance. In most cases the shoes are released at specific times and dates; people enter raffles for the chance to buy the limited inventory.
Although the shoes initially could retail anywhere from $100 to $250, they tend to sell out instantly and soon afterwards demand from people who didn’t win the shoes during the raffle allows resellers like Frazier to charge a premium while reselling.
Premiums charged by resellers can range from a few bucks over the retail price to hundreds of dollars more depending on the sneaker.
Older shoes can cost more. Other factors, like if the sneaker was worn by an athlete or celebrity, can also increase the price.
Some sneakers worn by Michael Jordan have even sold for millions of dollars.
Just Imagine is Frazier’s second store dedicated to street fashion but will soon be his only one. His original shop location at 991 Payne Ave. in St. Paul will soon be converted to an antique and thrift store.
Lee Vang, an occasional at-home shoe reseller and consumer, has been a staple in the Twin Cities sneaker communities for the last five years. She said in that time she’s noticed the rise and decline of multiple physical storefronts for consumers like herself.
“I don’t even know how any shoe store is staying afloat right now, to be quite honest with you, at one point, we had a sneaker shop in every single mall in the Twin Cities,” Vang said. “That lasted a good couple months. And then, you know, slowly but surely, they all started closing down.”
Vang got into sneaker culture during the early 2000s while in high school. However, she only discovered the resale market a decade ago.
She said during the pandemic stimulus checks and working from home allowed her to dive back into buying shoes. And it’s also a hobby she now shares with her son.
“I started really trying to also focus on repurchasing shoes that I remember that I had, like the Jordan 9 Breds,” she said.
Similar to Frazier, her go-to sneakers revolve around what she had or wanted to wear while she was a kid.
“When I buy these sneakers, I’m healing my inner child,” Vang said.
Jordans continue to be the most sought after shoes for resellers and consumers.
During 2020, Michael Jordan’s “Last Dance” documentary led to a surge in price for classic Jordan sneakers, including different colorways of his first shoe, the Jordan 1.
That rise in popularity allowed Vang to even resell two Jordan 1 pairs, including a University Blue pair that originally retailed for $170 a pair in early 2021 for $1,000.
At the height of her sneaker buying, Vang herself said she dropped more than $800 for a pair of Jordan 1 Lows, the “Travis Scott x Fragment” shoe, a collaboration between the rapper and the Jordan brand.
Frazier said in recent years the demand for regular Jordan 1s has begun to die down. Those same Jordan 1 University Blue shoes Vang sold for $500 a pair now sell for $200 online.
“It seems the customer base is leaning towards Jordan 4s, [Nike] SB Dunks, Travis Scotts and shoes that are highly sought after. And I think that’s where we’re going more with it, versus the Jordan 1s and stuff like that are becoming a thing of the past,” Frazier said. “But, you know, I’m an ’80s baby, so Jordan 1s will always have love in my heart.”
Frazier blames fake or replica shoes coming out of China as a major reason behind the decline in sales since customers can’t always tell the difference between fake and real shoes.
He cites brands like Nike and Jordan rereleasing shoes and increasing inventory as another reason premiums are dropping.
Diversifying business
Shops like Frazier’s Just Imagine, have had to slash premiums to move their sneaker inventory, but also branch out into different products.
Frazier said understanding trends is what keeps businesses like his alive. He began his entrepreneurial journey a decade ago, selling hoverboards before that market died, then transitioned to streetwear and sneakers.
“Reselling is probably one of the best decisions I ever did. With that being said, you know, people just got to work hard. Believe in your vision, and don’t let nobody deteriorate your game plan,” Frazier said.
To diversify his own businesses, Frazier plans to open up a mini golf business at Maplewood Mall by Halloween.
“The economy’s kind of gotten bad, so I’ve died down. I don’t need two stores 5 miles away selling the same thing,” Frazier said of his Maplewood Mall and Payne Avenue stores.
Other shops have added other collectible products, according to Vang, like Pokemon cards and Labubus, the viral toy from Asian brand Pop Mart.
Frazier said he’s held off on making those types of additions to his inventory but understands why some resellers stock them.
“The market is very scary right now. I feel like we’re in a pandemic phase as far as the value of shoes, and who knows what the future holds,” Frazier said. “Who knows if reselling will be a thing of the future. But for now, just grasp ahold of what’s hot, that’s going to be the way for the future.”
This year Vang said she’s been selective on the shoes she buys both to wear and to resell.
“I think it [the sneaker reselling market] died, honestly, like the hype probably died in 2022 because then money got tight,” Vang said. “There were no more stimulus checks. People were returning to work. Priorities were changing.”
Frazier remains optimistic however. Ever since opening up at the Maplewood Mall he routinely hosts gatherings for clothing and sneaker resellers in an effort to boost the local industry.
Sneaker resellers also recently had the opportunity to attend Sneaker Con, a traveling convention for sneaker resellers and buyers that opened for a day at the Minneapolis Convention Center.
“I’ve seen a lot of sneaker events around the Twin Cities pop-off since the pandemic, and that shows that people are really out here, still into the sneaker community and still active,” he said. “The sneaker community is here and it is alive.”
