The shift away from the wholesale distribution model is to provide consumers with more premium shopping experiences.
In a move to boost its direct-to-consumer (DTC) channels, Nike is closing nine of its wholesale accounts, as per the Susquehanna Financial Group. These accounts include City Blue, VIM, EbLens, Belk, Dillard's, Fred Meyer, Bob's Stores, Boscov's and Zappos.
With Nike looking to “double down” on its Nike Direct strategy, the company plans to cut down more of its wholesales partners and enhance its digital offering. However, the acceleration of the Nike Direct strategy could result in layoffs.
As Nike’s future goals include focusing more on its owned stores, the company is opening 200 smaller format stores worldwide inspired by the Nike Live concept. The concept has been testing with "a small number of strategic partners”.
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