Nike expected to cut ties with retailers as it doubles down on digital

Article courtesy of Business Insider here



Nike is cutting ties with a number of retailers, according to Sam Poser, an analyst for Susquehanna Financial Group.


The company will no longer sell its branded shoes and clothing to Zappos, Belk, Dillards, Boscov's, Bob's Stores, Fred Meyer, EBLens, VIM, and City Blue, Poser said in a research note on Monday.


Collectively, these retailers operate about 1,000 stores. The decision is "very good news" for Dick's Sport Goods, Hibbett Sports, and Shoe Carnival, Poser said. It should also provide a boost for Famous Footwear and Designer Brands' DSW. These stores are expected to continue to sell Nike branded shoes.


In a statement on Poser's report, Nike confirmed to Business Insider that it is slashing the number of "strategic partners" it works with. The company did not refute the list of retailers in Poser's report.


"Nike has a bold vision to create the marketplace of the future, one closely aligned with what consumers want and need," the company said in an e-mailed statement. "As part of our recently announced Consumer Direct Acceleration strategy, we are doubling down on our approach with Nike Digital and our owned stores, as well as a smaller number of strategic partners who share our vision to create a consistent, connected, and modern shopping experience."


The Consumer Direct Acceleration strategy is a digital-focused plan that Nike announced in June.

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