Nike direct sales warning
22 December 2021
Nike is aiming to cut the number of chains it supplies to only 40 worldwide as part of its Consumer Direct Offensive initiative. Several leading UK retailers, such as Very Group and Schuh, have recently been dumped by Nike and it cut ties with John Lewis in 2019.
The direct-to-consumer movement is causing consternation amongst retailers; one senior figure called it the biggest change the industry has seen in at least 20 years. “All sports brands are looking at ways of going direct,” added advisor Paul Sherratt. “They make more margin, they know who the customers are and they can build a community.”
However, one national chain has submitted a formal complaint to the Competition & Markets Authority over Nike’s cull. “It has a serious negative effect on competition and consumer choice… it appears to be backdoor price maintenance.” The CMA has yet to rule if there is a case.
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