Nike is DSW’s largest sporting goods supplier and accounted for approximately 7% of DSW’s sales in 2020.
Photo: Justin Sullivan /.
Nike has announced that it will stop selling its shoes and sportswear at DSW, one of the largest shoe store chains in the United States.. The company will stop offering its brand in this chain in 2022.
One of the reasons this relationship ended is that Nike plans to sell more of its products through its own stores, websites, apps and only a few select retailers.
The company has significantly reduced the number of traditional stores in which it sells its products in recent years, all in an effort to improve profits and tighten control over how its products are presented.
The plan has hurt some independent shoe and sports stores, which rely heavily on sales from Nike, the world’s largest shoe maker, to attract customers.
Designer Brands, the parent company of DSW, said Nike shipped the last of its products to the company in September. Once DSW sells them in store and on their online page, they will no longer be able to offer Nike products in their stores..
Nike is DSW’s largest sporting goods supplier and accounted for around 7% of DSW’s sales in 2020, as reported by CNN.
Nike CFO Matthew Friend said in September that the brand was no longer sold in around 50% of the retail stores where it was offered since the strategy began in 2017.
At the time, Nike said it would focus its resources, marketing and core products on just 40 strategic stores., including Foot Locker and Dick’s Sporting Goods.
Selling products on its own website and in physical stores generates more than double the revenue for Nike, compared to selling through wholesale partners.
The company also exercises much tighter control over the buyer’s experience and the prices of its products. This is a huge advantage for a high-end brand like Nike, which wants to present its products to customers in an attractive and consistent way, and avoid the products receiving big discounts.
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