(CNN) – You won’t be able to buy Nike sneakers and apparel at any of America’s biggest shoe store chains in 2022.
Nike announced that it will stop selling to DSW as it cuts ties with many stores and shifts to selling more of its products through its own stores, websites, mobile apps and select retailers.
The company has drastically reduced the number of traditional retailers it sells to in recent years to improve its profits and increase control over the presentation of its products. This has hurt some independent sneaker and sports stores, which rely heavily on selling Nike – the world’s largest shoemaker – to attract customers.
Designer Brands, DSW’s parent company, said in an earnings call on Tuesday that Nike shipped the last of its products to the company in September. Once DSW sells them in stores and online, Nike will disappear from the shelves.
Nike is DSW’s largest sporting goods supplier, accounting for approximately 7% of DSW’s sales in 2020.
Nike chief financial officer Matthew Friend said in September that the brand had “left about 50%” of its business partners since announcing the strategy in 2017. At that time, the company said it would focus its resources, its marketing and its best products on only 40 retailers. partners, including Foot Locker and Dick’s Sporting Goods.
Selling merchandise on its own website and in physical stores earns Nike more than double the profit it would receive from selling through wholesale partners. The company is also gaining much tighter control over customer experience and pricing. This is a big advantage for a high-end brand like Nike that wants to present its products to customers in an attractive and consistent way, and prevent products from being overpriced.
Rivals Under Armor and Adidas are following Nike’s lead, pulling out of retail partners and building the direct-to-consumer channel.
Meanwhile, despite the loss of Nike, DSW believes it can offset revenue by expanding other sports brands.
“We’re doing very well across our sports portfolio,” Designer Brands CEO Roger Rawlins said on a call with analysts Tuesday.
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