(CBS/CNN) – You won’t be able to buy Nike sneakers and apparel at one of America’s largest shoe chains in 2022.
Nike announced that it will stop selling to DSW as it cuts ties with many of its stores and moves to sell more products through its own stores, website, mobile app, and select retailers. me.
The company has dramatically cut back on the number of brick-and-mortar retailers it sells to in recent years to improve margins and tighten control over how its products are displayed. That hurts a number of independent athletic and athletic shoe stores, which rely heavily on selling Nike – the world’s largest shoe maker – to attract customers.
Designer Brands, the parent company of DSW, said during an earnings press conference Tuesday that Nike shipped its final products to the company in September. Once DSW sells them in stores and online, Nike will no longer be on the shelves.
Nike is DSW’s largest supplier of sporting goods, accounting for about 7% of DSW’s revenue in 2020.
DSW is a well-known shoe retailer in Massachusetts and New Hampshire. It has stores in Boston, Braintree, Burlington, Dedham, Everett, Framingham, Holyoke, Hyannis, Marlboro, Millbury, North Attleboro, Plymouth, Saugus, Stoughton, Wareham, Woburn and Worcester, as well as Manchester, Nashua and Salem in New Hampshire .
Nike’s chief financial officer, Matthew Friend, said in September that the brand had “left about 50%” of its retail partners since announcing the strategy in 2017. At the time, the company said knew they would focus their resources, marketing and top products on just 40 retail locations. partners, including Dick’s Footwear and Sportswear.
Selling on its own website and physical stores helps Nike double the profits it gets from selling through its wholesale partners. The company also has much tighter control over the shopper experience and pricing. That’s a huge advantage for a premium brand like Nike that wants to showcase merchandise to customers in compelling and consistent ways, while preventing products from being overpriced.
Competitors Under Armor and Adidas are closely following Nike’s lead, re-engaging retail partners and building direct-to-consumer sales.
Meanwhile, despite losing Nike, DSW believes it can generate revenue by developing other sports brands.
Designer Brands CEO Roger Rawlins said on a call with analysts Tuesday.
(© Copyright 2021 CBS Broadcasting Inc. All rights reserved. Nathaniel Meyersohn of CNN contributed to this report.)
https://boston.cbslocal.com/2021/12/09/nike-stop-selling-sneakers-shoes-dsw-stores/ Nike stops selling sneakers at popular shoe chain – CBS Boston