“Anyone want to explain why shoes are dying?”: Sneaker shop owner shares bleak outlook of luxury streetwear

A California sneaker store owner’s desperate plea about the collapsing resale market has gone viral, sparking debate about whether luxury streetwear is facing a permanent shift.

Sneaker store owner reveals drastic price cuts

In a viral video with more than 5.8 million views, a sneaker store owner who goes by @hdnrlm.ceo asks a question that’s clearly been weighing on him.

“Does anyone wanna explain why shoes are literally just dying right now?” @hdnrlm.ceo he says.

The owner, who runs Hidden Realm in Placentia, California, says his store has been struggling despite drastically cutting prices.

“I own a sneaker store, and we’ve been struggling for the last couple of months. And y’all can say, oh, oh, it’s because you overpriced things,” he says.

But his prices tell a different story. He walks through multiple examples of shoes priced well below market value and even below retail:

Yeezy sneakers: Retail $210, market value $190, his price $110
Off-White Lot Dunks: Used to sell for $500-$600, market now $400, his price $320 (a shoe that’s been hard to get for four years)
Nike SB Navy: Used condition, priced at $210—basically retail price
Shattered Backboard Jordan Ones: Recently released, priced at $170, which is below the retail price
Lucky Greens and Royal Toes Jordan Ones: All priced under retail
Yellow Ocher: Going for $90 in his store when retail is $170

“All these things are going for well under retail, and we have them priced under retail,” he emphasizes. “It’s definitely an interesting time in the sneaker world right now.”

The market isn’t just slow, it’s stagnant

What makes the situation even more concerning is that people aren’t even coming in to sell their shoes.

@hdnrlm.ceo what would you do in my situation? #sneakers ♬ original sound – Hidden Realm

“You’d think that people will be coming to sell us their shoes, too, because the market’s down. They just wanna get rid of some stuff. But that’s not even the case,” he explains.

While he notes they did buy a lot of shoes the previous week, this week has been slow. The stagnation on both the buying and selling side suggests consumers are holding onto their money rather than participating in the sneaker market at all.

Is this a recession indicator?

The sneaker resale market’s struggles may be a canary in the coal mine for broader economic concerns.

According to Women’s Wear Daily, the sneaker resale market has experienced a significant shift, with only 47% of sneaker releases trading above retail price in 2024, down from 58% in 2020. The publication notes that “economic headwinds have influenced buying habits,” with consumers trending toward lower-priced sneakers like Nike Dunks and Adidas Sambas due to inflationary pressure.

The sneaker market’s decline mirrors what’s happening in the broader luxury goods sector. Business of Fashion reports that the luxury industry is facing its first significant slowdown since the 2008 financial crisis, with growth expected to reach only 1-3% annually between 2024 and 2027. The publication notes that luxury’s “rapid expansion over the past five years has led to overexposure and has weakened the industry’s promise of exclusivity.”

Morgan Stanley analysis suggests that luxury goods—while often considered recession-resistant—are facing “a more adverse outlook” amid macroeconomic challenges. According to the firm, “a worsening economic outlook and an already significant correction in equities represent more serious threats to the luxury industry than higher tariffs.”

The sneaker resale market is essentially discretionary spending concentrated among younger consumers, making it particularly sensitive to economic uncertainty.

However, it’s worth noting that the sneaker market’s troubles aren’t solely about the economy. As WWD reports, “industry giants have oversupplied key silhouettes at retail, making profiting on the secondary market more difficult.” Brands like Nike have flooded stores with inventory, reducing scarcity and resale premiums. The market may be experiencing a correction after unsustainable pandemic-era growth rather than signaling an imminent recession.

“Bro. Groceries are more important rn,” a top comment read. “Sorry people are literally starving,” read another.

“Gas is high, groceries is high, rent and mortgage is high… people are broke trying to survive. Don’t nobody care about no damn sneakers,” one commenter wrote.

“We’re in a recession, fam,” a person said. “You can’t eat sneakers,” joked another.

“The world is burning. Our country is collapsing,” another wrote.

“People aren’t falling for consumerism anymore,” suggested one.

“People found out that shoes are just shoes,” said another commenter.

“Fakes are good enough and easier to get,” offered another.

The Daily Dot reached out to @hdnrlm.ceo for comment via TikTok direct message and comment.