31 Mar Report: Nike To Stop Selling To Six Additional Wholesale Accounts
In a note, Williams Trading’s Analyst, Sam Poser, stated that proprietary checks confirm that Nike will close six additional wholesale accounts: DSW, Urban Outfitters, Shoe Show, Dunham’s Sports, Olympia Sports, and Big Five.
The report also indicated that Nike would no longer sell apparel directly to Macy’s, although athletic footwear sales will continue through Finish Line’s partnership to operate in-store shops inside Macy’s locations.
The reported account closures come as Nike has been 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 in the future on 40 key retail partners and its consumer-direct efforts while pulling back from “undifferentiated” channels of distribution.
Poser last August was the first to report Nike’s exit from nine stores – City Blue, VIM, EbLens, Belk, Dillard’s, Fred Meyer, Bob’s Stores, Boscov’s, and Zappos.
Poser wrote in his latest note, “While we are startled by Nike’s decision to no longer sell the multi-branded retailers listed below, we are not surprised.”
He added on the reported exits, “We do not know the effective date of the cutoff; however, February/March 2021 were the last Nike shipments to the nine retailers who were told their fate last August. We would expect the last shipments to the seven companies listed will be around October 2021.”