US sportswear and apparel company Nike is set to stop selling its products to dozens of stores and retail chains across Israel.
Nike is considered one of the most popular sports brands in Israel and has become a staple for many sportswear stores across the country, which rely heavily on the brand.
The move, confirmed by a letter sent to the affected stores by the company’s Israeli branch, will come into effect on May 31 and is part of its new global marketing strategy, which aims to encourage customers to purchase its products through the site in Nike line and physical stores and some retailers.
“As a result of a comprehensive review by the company and taking into account the evolution of the market, it has been decided that the continuation of the business relationship between you and the company no longer corresponds to the policy and objectives. of the business, ”the company wrote in its letter to retailers. .
“We strongly encourage you to already start anticipating this termination in order to successfully continue your business without Nike products in your assortment,” the letter continued.
David Benny, owner of the Ram Sports store in Ramla, has been selling Nike products in his store for 35 years.
“Three years ago, [Nike] started to limit the [show] models that we can order, claiming they were exclusive to Nike and Foot Locker, ”Benny said.
“We had been told in advance that certain models were prohibited to us, and sometimes we would not receive a model that we had already ordered,” he added.
According to Benny, his contract with the company changed about six months ago to include a clause stating that Nike can terminate it at any time.
“Thursday, I received a phone call from my saleswoman, who told me that due to a reorganization, [Nike] will cease their communication with us, ”he added.
It turns out that around 70 other owners of small and medium-sized shops and chains received the same message.
Another store owner who refused to identify himself said: “[Nike’s] the conduct is draconian. We are going to move to buy parallel imports, but it will be very difficult. “
Av. Guy Serrusi, who represents some of the retailers aggrieved by the company’s new policy, said: “Nike Israel has unilaterally decided to part ways with dozens of retail stores and leave many businesses with no major source of income.
“This is another in a chain of actions Nike Israel has taken in recent years that has decided to virtually cease contacting retail stores … Our office will continue to stand with store owners to prevent the unilateral termination of the cooperation, while finding a suitable solution for the store owners. “