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Nike to cease supplying independents

Tom Bottomley
14 October 2019

US sportswear giant Nike has dealt a “killer blow for small stores” by ceasing to supply them, according to a report.

The report in The Sunday Times claims that Nike has “thrown the future of dozens of independent retailers into doubt by terminating their supply agreements”, as the brand seeks to take greater control of its distribution by 2021 – in a bid to boost profits and send customers to its own website and stores.

In a letter seen by The Sunday Times, Nike has apparently notified the independents that availability to stock its products would end in two years, stating that their way of stocking its goods was “no longer aligned” with Nike’s distribution strategy.

The Sunday Times also states that retailers are fearful that Adidas will follow suit, as “the two brands dominate the industry and between them raked in about £50bn of sales worldwide last year.”

Small retailers that have built their businesses on the two powerhouse sports brands risk being killed off, though other sports brands will no doubt see it as an opportunity to attempt fill the void left in the wholesale market.

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