27 Aug Analyst: Nike Will No Longer Sell To These Nine Big Retailers
Susquehanna International Group said in a note Monday that proprietary checks confirm that Nike will be closing nine wholesale accounts: City Blue, VIM, EbLens, Belk, Dillard’s, Fred Meyer, Bob’s Stores, Boscov’s, and Zappos.
In the note, Sam Poser, the lead analyst in the space for Susquehanna, wrote, “We are unsure over what period of time the aforementioned retailers will be weaned from Nike product.”
The reported account closures come as Nike has been in the process of gradually exiting wholesale accounts that do not adequately support Nike’s positioning in the marketplace. In 2017, Nike announced plans to focus its organizational resources going forward on 40 key retail partners and its own consumer direct efforts while pulling back from “undifferentiated” channels of distribution.
In the note, Poser wrote that the move to shed nine accounts “is positive for Nike as it takes control of more of its own destiny.” Among retailers, Poser said that based on the locations of the accounts being closed, Dick’s Sporting Goods, Shoe Carnival and Hibbett Sports “will likely be the greatest beneficiaries of Nike’s decision.”
He added among other publicly-held retailers, the decision “is good news, or provides a potential break,” for Famous Footwear and DSW, which is owned by Designer Brand, He added that less distribution helps Foot Locker “to some degree.”