why-nike's-decision-to-cut-ties-with-9-major-wholesalers-is-'a-positive':-analyst

Why Nike's decision to cut ties with 9 major wholesalers is 'a positive': analyst

According to SIG research, the Swoosh brand is closing wholesale accounts with the following retailers:

  • City Blue, a 20-store athletic fashion chain, with stores in PA, NJ, OH, and DE

  • VIM, a 31-store athletic fashion chain, with stores in NY and NJ

  • EbLens, a 48-store athletic fashion chain, with stores in NY, CT, MA, and NH.

  • Belk, a ~300 store chain, with stores in TX, OK, MO, AR, LA, MS, TN, KY, AL, GA, FL, SC, NC, VA, WV, and MD

  • Dillard’s, a ~285 stores in 29 states.

  • Fred Meyer: ~130 store chain, with stores in OR, WA, ID, and AK.

  • Bob’s Stores, a 30-store chains, with stores in NY, CT, MA, NJ, and NH.

  • Boscov’s, a ~50-store chain, with stores in PA, NY, NJ, DE, MD, OH, CT, and RI

  • Zappos.com, the online shoe retailer

Barcelona, Spain – November 6, 2012: Customers visit Nike store on November 6, 2012 in Barcelona, Spain. Nike is one of most recognized fashion brands. It exists since 1964 and had US$ 19 billion revenue (2010).

Nike tells Yahoo Finance the move is part of the company’s expanding “Consumer Direct Offense,” a strategy that has been paying off for the brand as of late. Direct-to-consumer (DTC) growth accounted for 33% of the Swoosh brand’s revenue in FY20, up 3% from FY19.

When Yahoo Finance reached out to Nike for comment regarding the analysts’ findings, Nike said, “Nike has a bold vision to create the marketplace of the future, one closely aligned with what consumers want and need. 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.”

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