Skip to content

Nike closes 9 deals with stores and has a backup plan

August 28, 2020

The shoe and sporting goods brand is reportedly focused on reaching its consumers directly with no middlemen.

3 min read


Nike closes 9 deals with stores and has a backup planNike closes 9 deals with stores and has a backup plan

The brand has analyzed its put options and with whom it has close relationships. She’s also prioritized her own sales channels to get closer to her consumers.

The shoe giant is closing nine of its wholesale accounts: City Blue, VIM, EbLens, Belk, Dillards, Fred Meyer, Bob’s Stores and Zappos, according to analyst Susuqehanna Financial Group, who said that “the decision is positive for Nike as it gives more control over his own fate. “

It is not yet known when he will be leaving the accounts, but they are well underway. “Nike has a bold vision to create the market of the future that is precisely tailored to the wants and needs of consumers,” said a spokesman for the brand. “As part of our recently announced direct-to-consumer acceleration strategy, we are focusing twice on Nike Digital and our own stores, as well as on less strategic partners who share our vision of creating a consistent, connected and modern shopping experience. “He added.

Depositphotos

This is not the first time that Nike has parted ways with business partners. Last November, the retailer pulled out of Amazon. Even some analysts and experts said at the time that the Nike brand need not be associated with anyone “for distribution only”.

Since then, the brand has stepped up its efforts around the Nike Direct strategy announced last June. Therefore, most of the company’s steps are focused on improving its digital offering and reducing its wholesale partners in favor of other channels.

Depositphotos

“In the past few years we have moved from an old wholesale distribution model to investing in one that offers our consumers a better shopping experience,” said John Donahoe, CEO of Nike.

For now, other similar actions are not ruled out as the brand continues to evaluate its partners and distribution strategy as its goals place a greater emphasis on its own stores, including the 200 openings around the world.

Receive Breaking News !

Install
×
Enable Notifications    Ok No thanks