In a bid to boost profit and margins, Nike is expected to stop supplying stock to its independent retailers by 2021. The globally renowned brand is rumoured to want to focus on a direct-to-consumer approach and cut out the middleman.
There are claims that Nike has already begun notifying some of the independent retailers it intends to cut ties with and the terminations are expected to start being processed as early as next year, with 2021 the goal for completion.
For many sneakerheads, this news won't come as a shock. Nike has already started featuring exclusive products on its SNKRS app and in selected stores in a bid to encourage fans and customers to go direct to retailer. Proving to already be a success, the brand's gross margins increased to 44.7% last year and this growth is only the beginning.
What do you think of this news? Do you agree with what Nike are doing? Let us know what you're thinking, and make sure you keep it locked at The Sole Supplier for the latest and greatest sneaker news.