More Layoffs. Let's Talk About StockX.
From the early days to partnering with Walmart.
In January of 2016, Josh Luber hit me up and said he was going to be in San Francisco and that we should grab lunch. One of my best (or worst) qualities, is that I say yes to a lot of things most people wouldn’t, but I’ll get into that shortly. One thing is for sure, I am almost always down to grab lunch or coffee in The City and talk about something I love: sneakers. However, after a few email exchanges with Josh over the course of the 2-3 months prior to this lunch, I had a hunch that something was in the works. What I didn’t know, is that this meeting would kick off a series of events that would change the entire course of my life, from pre-launch contract work with StockX, to weeks later to becoming employee number nine, moving to Detroit, and most importantly, finding my person.
To say that I have a soft spot in my heart for StockX would be an understatement. It’s the reason I met some of my closest friends. It allowed me to be a part of something really special and to accomplish some truly bucket list things. How many people get the chance to launch the very first retros of LeBron James’ signature sneaker line, the Nike Air Zoom Generation? Not to mention, being that Dan Gilbert was the majority owner of StockX and of the Cleveland Cavaliers, I got a StockX-exclusive championship ring that will always remind me of that time in my life.
StockX changed everything about my life, just not in any of the ways that I thought it might. Yet, like most things we love, or are super passionate about, it’s easy to have too much emotion invested in them. That often leads to huge disappointments when things don’t work out how you planned them out in your head.
I have a lot of mixed feelings on what StockX did to the culture of sneakers, but I believe that despite the company’s success, the evolution of sneaker/streetwear marketplaces was inevitable. Reselling has always been a two-sided coin for sneakerheads and we can’t have a world of sneakers (or anything collectible, or fun, or interesting for that matter) without the money-hungry exploitation aspect of reselling, and the good part that allows us to experience the thrill of the hunt, digging through old stock, or pages of eBay auctions, chasing after a pair that only matters to a select few.
This week StockX laid off a number of my friends. People who had worked for the company for nearly the entirety of its existence. It’s probably not a surprise to many, the sneaker business has been in a lull, and the reselling side of things has taken that dip the hardest. In a lot of ways, this seems like something that could have been avoided but I fundamentally believe that all businesses need to be more empathetic towards employees, especially during challenging times. That, however, is a rabbit hole I’ll save for another day. For me, though, hearing about the layoffs is triggering in a couple of different ways.
First, my personal experience of being laid off earlier this year was incredibly difficult. It still is to this day. I wouldn’t wish those struggles on anyone but especially on people like myself in my former role at Stadium Goods, where people are strung along by the promise of equity, options, acquisitions, or any of the other carrots that are dangled in front of the people who do the actual work for these businesses. However, in the last month or two, things have finally taken a turn for the best for me and if any of my friends read this, I truly believe that in time that this situation will become more of a blessing than the burden it appears to be in this moment.
My time at StockX began as a contractor and turned into a full-time role with all the promise of life-changing equity. Similarly, my time at Stadium Goods went from full-time consultant to being convinced to become a full-time employee with a substantial number of stock options. While most would say that it’s unfortunate that I walked away from both roles without a significant change in my net worth, I think I gained more in the form of human connections and great friends than any amount of money in my bank account could match. I guess it’s true that time is the ultimate healer.
The other triggering part of this round of layoffs is more about the direction of the business. StockX just announced a major partnership with Walmart, a company that is responsible for a single family having 7-10 billionaires (depending on whose data you use), a number of those family members are double-digit billionaires. According to Forbes, in the time that StockX has been in business (2016-2024), the Walton family has doubled their net worth, going from $130 billion to over $260 billion. For context, at its peak in 2022, StockX was rumored to be valued at about $3.8 billion. I know people admire wealth more than anything in America, but I can’t say the same, at least not to the extremes we see it.
On the other hand, Walmart is an impressive empire if you overlook how they under pay people, limit hours to avoid providing health care, and how in general they are known to treat employees poorly. As someone who’s had family members work for Walmart, I’m completely biased in my negative view on the company and I’m aware of that.
Businesses are meant to make money, I get it. My issue with the partnership between StockX and Walmart is more in the predatory nature that will inevitably be used to convince people to buy overpriced sneakers that they can’t afford without some debt trap. Not to mention, Walmart’s e-commerce platform is notorious for selling fake sneakers. Neither of things are good in the long run, even if they result in short-term profits. Not to mention the loss of culture that comes from a partnership like this. There’s a reason that Nike not only doesn’t sell shoes through Walmart, but they’ve also sued Walmart for design infringement a number of times.
I know there’s not a lot of constructive criticism to be found these days when it comes to sneakers. The rise of influencers and paid-to-post creators, the divisive positioning of startups, and the general low vibes of many sneaker enthusiasts have all contributed to the lack of thoughtful discourse. More than anything though, the loss of people in the industry that deeply care about the culture of sneakers is driving things in the wrong direction. Nike just changed direction with their recent CEO shakeup, but what about the rest of the industry?
I think there is an opportunity for those with enough passion to build something new and exciting; much like there was in 2015 when the idea for StockX came about. People, brands, and culture vultures will come and go. Those of us that care will be here to invite them in, build with them, and send them on their way, all in the name of this crazy obsession we all share.