Dividends and Nike aims sneaker subscription service at youth market

Every retailer has a tough job to stay current, on trend and have many repeat visits which include purchases. One method which is increasingly becoming very popular is a subscription series such as Amazon Prime which gives free shipping and brings in a billion a year to Amazon. All companies look at that number and want to republicated it and Nike the running shoe company has come up with the Adventure Club.

The Adventure Club is aimed at 2-10 years, has 3 levels $20, $30 and $50 a month and the parents can receive a new pair of sneakers once every 3 months, or 2 months or every month. In an article by Nivedita Basu of Reuters, Nike says solving the needs for parents with kids age 2 to 10 means we are going to start building relationships through kids. The idea is the kids will ask for Nike and as the age they will continue to buy Nike runners.

Linking to dividend paying stocks, loyalty and repeat business is the desired goal of every business. Subscription services are expanding in order to bring in an expect cash flow every month whether there are sales or not. The higher the cash flow, the more the options for the company.

There are more questions than answers, till the next time – to raising questions.

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