https://www.sneakerpaleis.nl/en/blogs/blog/nike-wants-to-retain-40-mega-retailers-in-usa/

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Nike wants to retain 40 mega retailers in USA

  • Posted on
  • By A. C.
  • Posted in News, Nike
  • 0

Of the 30 thousand official dealers, Nike wants to keep 40 in the United States of America. The brand also wants to open more own stores.

Nike has implemented a new business strategy in recent years, whereby the delivery contracts with different official dealers are not extended after the contracts have expired. Nike only wants to retain 40 retailers outside its own stores. At the 40 retailers, Nike will look at the sales and size: number of stores and/or the online shop(s). It is also examined whether the retailers add value to the brand. This includes looking at customer experiences and marketing such as photo marketing, smartphone apps, website design and store design. Nike also applies the same strategy to its Jordan brand. Deliveries have already stopped at many dealers. The 40 retailers that will remain must be realized within a few years.

Nike wants to sell more through its own channels
As we mentioned earlier, Nike wants to sell more through its own stores and web shops. The intention is that more profit will be achieved.

The business strategy will be also applied in other countries
The business strategy will be applied in the whole world over time in each country. Delivery contracts with various entrepreneurs are not being extended throughout Europe. It is not known how many customers remain per European country, but it will be considerably less than you were used to in recent years.

Parallel Nike and Jordan trade restricted
Through this business strategy the brand also restrict for a big part the parallel trade (selling the brands through unofficial dealers).

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