Has Nike’s greed come back to haunt it?
Published: 31st Jul 2024
Early in July, international media carried reports about a steep fall in Nike’s share price following disappointing results. One was Sky News, which headlined a report: ‘How a series of blunders brought Nike's share price to COVID lows and meant it's being beaten by younger rivals.
The iconic sportswear brand has switched away from third party retailers to focus on its own shops and moved away from divisions that covered individual sports, weakening its relationships with - and understanding of - those sports.’
Later, Fortune ran an article headlined: ‘Move over Nike, Adidas and Puma – Swiss shoemaker On is dominating the Paris Olympics.’
Many local retailers remember being dropped by Nike. Here’s what some of them think of Nike’s troubles now.
Tags: Nike
- Relationships have to be more equalCape Town, W. Cape, SA – I’m sure Nike’s decision to drop so many retailers can’t have helped their recent performance, but I don’t know how much damage that did to them.It was mostly motivated by the opportunity to double their markup – that’s the only reason that makes sense. But what they didn& ...moreSpringbok sponsors – and as a sports shop we can’t get a single jerseyPort Elizabeth, E. Cape, SA – What we hear is that both Nike and Adidas are losing sales internationally.Here, however, we’re affected by Nike’s Springbok sponsorship deal – as a sports shop, we can’t get a single Springbok rugby jersey or replica shirt. We couldn’t get them during the World Cup, we cou ...moreTheir strategy hasn’t unfolded as they expectedCape Town, W. Cape, SA – Yes, Nike has been down this road before. Their current new Global Strategy to streamline their distribution was implemented and we independent businesses were out of their bigger plan. This sadly led to many independent retailers, dependent onNike, Adidas, NB, etc., to close down or to downscale their opera ...moreI’ve ‘filled the gap’, thank youCape Town, W. Cape, SA – L. Cohen Outfitters Est 1912 was the first independent in Wynberg to acquire the Nike brand, a situation that we held for a number of years before Nike's policy changed to supplying numerous stores in close proximity.Those were the good years.The World didn't end when they advised that they would be terminat ...moreOthers have taken their placeLouis Trichardt, Limpopo, SA – I do think their drop in business is because they have sidelined all the independents. After all, it was the independents that grew the brand, not the chain groups. With this being said, all other companies have taken advantage and grown to another level. One of those is Puma which has grown so much an ...more
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