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Supply chain glitches affect Nike retailers


Nike has been affected by the disruption in global supply chain for sneakers. Nike has voiced concerns about its ability to sell seasonal collections for year-end festivities, with half of Nike sneakers are sourced in Vietnam. In the last few weeks, the sector has hinted at the difficulties multibrand retailers might experience on stocks of Nike’s most popular products in the near future. Nike Futures orders for Spring/Summer ’22, and the balance Winter ’21 orders, stand cancelled. Nike has also indicated that re-stocking would not be possible until further notice. A few years ago, Nike announced it intended to prioritise direct sales channel and a limited number of close retail partners but the fact that the group’s retailers are having their orders cancelled is concerning.

Covid continues to impact global supply chain and create transportation disturbances. Like Nike, German groups Adidas and Puma are dealing with closures at their Vietnamese suppliers’ factories in recent months and with difficulties in shipping goods from Asia to the rest of the world. They are expecting stock-outs for some products during the year-end festivities. The same disruption is expected to hit the production of spring/summer 2022 collections.