Nike D2C: Not For Everyone

The sports behemoth Nike has revealed an ambition to achieve 50% of sales through its physical stores and eCommerce offering — no wonder, as CNBC reported, “revenues from its direct-to-consumer division amounted to $11.8 billion in fiscal 2019, fueled by a 35% jump in online sales and same-store sales growth of 6%.”

Importantly, the move has seen Nike inform some retail partners that as a result they will no longer receive branded goods from 2021. The news has upset many of them, not least Mike Ashley, owner of Sports Direct, who has hit-out at the power of Nike and their German counterparts, adidas (which he has quarreled with in the past).

No doubt this is a move to protect margin and control the brand more tightly. Yet, it is hard not to feel for smaller independents — notably specialist running or sneakerhead stores — that rely on it for survival (and credibility). In addition, it will be fascinating to learn what sales numbers the sportswear company insists that stockists achieve, in order to continue carrying the brand.