Yeezy Surplus: Adidas Eyes Discounts & Charity

Adidas’ split with Kanye West has left the company facing a major issue about $1.3 billion in unsold Yeezy shoes stored in global warehouses. The partnership ended due to West’s controversial behaviour, which made working with the famous artist difficult for Adidas.

Besides the Yeezy problem, Adidas has dealt with other challenges. The brand lost ground to competitors like Nike and Puma, which gained market share. The pandemic also hurt Adidas, as shown by a 35% sales drop in China in 2022 due to COVID-related lockdowns. Additionally, the company had a $62 million loss after leaving Russia because of its invasion of Ukraine.

Adidas is weighing options to tackle the excess Yeezy inventory. A spokesperson stated that selling the items at full price or getting rid of them entirely is unlikely. Instead, Adidas seeks strategies that reduce negative impacts while creating positive outcomes.

One proposal is to sell the shoes at a lower price and donate the profits to charity. This plan aids those in need and helps clear excess stock. If implemented, Kanye West would still receive a share of the revenue, as per his royalties agreement.

In conclusion, the Yeezy issue poses a significant challenge for Adidas, but the company is determined to find a solution that aligns with its values and commitments. By exploring options like discounted sales and charitable donations, Adidas hopes to turn a tough situation into a positive impact for both the brand and the broader community.