Nike will no longer sell its sneakers and apparel at Designer Show Warehouse, one of the largest shoe store chains in the United States. By 2022, Nike branded products will no longer be in DSW stores.
The American sportswear and footwear maker has severed ties with a number of stores and DSW is included in the list. The move is part of Nike’s strategy to boost sales by selling more of its products through its own physical stores, online stores, select retailers and the Nike app.
According to CNN Business, Nike has cut many traditional retailers and tightened control over how its products are presented. His decision to stop selling his sneakers and apparel may benefit the business, but it has hurt some independent shoe and athletic stores, especially those that rely heavily on profits from the sale of Nike merchandise.
Earlier this week, DSW’s parent company, Designer Brands Inc., said on the earnings call that Nike had already shipped the last batch of its products to the company in September. Apparently, once these items are sold, there will be no more shipments to wait for and the brand has disappeared from its shelves for good.
It’s easy to see why DSW will be hit hard by Nike’s decision to exit. The brand is DSW’s largest sporting goods supplier and accounted for approximately 7% of DSW’s sales results in 2020.
In September, Matthew Friend, Nike’s chief financial officer, said they had pulled out of 50% of its business partners since 2017. He said they would only retain 40 business partners, including Dick’s Sporting Goods and Foot. Locker.
Nike hopes to make bigger profits, possibly double, by starting to sell its products in its own physical stores and online store. The company will also be able to control the prices of its products in this way in order to have more opportunities to earn more.
Either way, though they may be affected, DSW still thinks it can recoup and compensate for the revenue it will lose by boosting other big brands it sells. WRCB-TV News Quoted Roger Rawlins, chief executive of Designer Brands, on an analyst call this week, “We’re doing very well across our sports portfolio.”