Sportswear giant Nike has a message for its thousands of retail partners around the world: shape up or ship out.
Speaking at an investor day in the US yesterday, Nike brand president Trevor Edwards outlined a step-change for the iconic business in the way it deals with its retail partners, saying that “undifferentiated, mediocre retailers won’t survive,” and committing Nike to “moving away from this over the next five years.”
Nike, which currently has 30,000 retail partners globally, plans to select around 40 “differentiated retailers”, such as Nordstrom, Footlocker and Amazon, for special collaborations and branded space in-stores.
No-names were mentioned in terms of who might be on the chopping block in the coming years, but the company is drastically stepping up its direct-to-consumer efforts as part of its plan to reach its $50 billion annual sales target by 2020 – a goal set in 2015 that investors have previously expressed scepticism about.
To service its ambitions Nike laid out a raft of new targets under a “triple double strategy” laid out by chairman, president and CEO Mark Parker.
“The consumer today expects a premium experience, with innovative product and services delivered faster and more personally,” Parker said. “Fueled by a transformation of our business, we are attacking growth opportunities through innovation, speed and digital to accelerate long-term, sustainable and profitable growth.”