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Wednesday, 31 March 2021 13:07

Nike terminates business with wholesale partners

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Nike plans to end its business relations with wholesale partners including DSW, Urban Outfitters, Shoe Show, Dunham’s Sports, Olympia Sports and Big Five and focus on direct-to-consumer (DTC) commerce. As per the Retail Wire, Nike announced its Consumer Direct Offense strategy in 2017 as a five-year plan to focus growth on 40 strategic retail partners and its own DTC.

Last year, Nike ended its relationship with nine accounts: Belk, Bob’s Stores, Boscov’s, City Blue, Dillard’s, EbLens, Fred Meyer, VIM and Zappos. The brand has also cut off numerous smaller independents. Since 2017, digital has become a bigger priority for Nike. The brand aims to increase its online business from 35 per cent in recent quarter to 50 percent. It has developed three digital-first retail concepts — Live, Rise and Unite — and is set to accelerate the store openings.

Nike officials have also urged it to work with select retailers, including Dick’s Sporting Goods, Foot Locker and Nordstrom in North America, that are collaborating with the brand on unique in-store concepts or driving member engagement.