Jump back. You don't have to wear sneakers over $100 to perform on - or off - the court anymore. Today, retailers such as Payless ShoeSource, Steve & Barry's University Sportswear and, of course, Wal-Mart are selling high-quality and inexpensive sneakers that have consumers taking notice and cash registers ringing.
Payless introduced its "The Amp" running shoe last month at $35. The retailer claims it is as good as shoes three times its cost and it is sturdy enough to stand up to a marathon run.
When Warren Greene, special-projects editor at Runner's World magazine heard Payless' claim about The Amp, he was skeptical.
"I remember thinking, gosh, this is a nice shoe. It flexes in the right places; it didn't look like it would fall apart. I ran in it and it wasn't awful," he told The Wall Street Journal.
Of course, Mr. Greene wasn't willing to give The Amp his full endorsement either. "It's not clear if the shoe will merit a review (in Runner's World)," he said.
Payless CEO Matthew Rubel said initial sales of The Amp have exceeded company expectations for the shoe. The sneaker is currently sold in 400 Payless stores and will be rolled out to an additional 1,200 locations by next year.
"The biggest hurdle is to get people to be believers," said Mr. Rubel. "We're going to be very patient. Ultimately, we believe the marketplace for authentic performance footwear at the $25 to $30 range is a multibillion marketplace."
According to NPD Group, sales of shoes under $50 represent more than half of the U.S. sneaker market. Sneaker sales for items that cost $90 and up represent less than 10 percent of the market, although sales in the segment are growing at roughly three times (on a percentage basis) the $50 and under group.
Steve & Barry's has gone even lower with its sneakers. The company recently launched New York Knicks' Stephon Marbury's line of athletic apparel and shoes. The Starbury 1 shoe is priced at under $15.
"There are kids that don't have a choice," Mr. Marbury said. "Now people can buy a line and say 'OK, we're buying the same exact quality for $14.98 or less.'"
Discussion Questions: Will the availability of high quality products in categories such as sneakers, clothing, home goods, furniture, etc. at discount prices have an impact on the premium-priced and even the luxury goods market? Has the increased consumer acceptance of cheap chic lessened the value consumers place on premium and super premium brands?