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    Home - Business & Entrepreneurship - Research: How Retailers Respond When Brands Start Selling Direct
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    Research: How Retailers Respond When Brands Start Selling Direct

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    Research: How Retailers Respond When Brands Start Selling Direct
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    In one of Nike’s first earnings calls under its new leadership in 2024, CFO Matt Friend announced that the company would be re-engaging with retail partners to right some of their “missteps related to over-centering on direct.” In 2017, Nike had drastically ramped up their investments in their own channels, including launching several web shops (such as Nike.com), mobile apps (like Nike SNKRS), and numerous physical stores. In response, many retailers pulled back from Nike and increasingly relied on other brands to stock their inventories and shelves. The Financial Times reported that the proportion of Foot Locker’s inventory from Nike fell from 75% to 65% in the last three years. Nike realized their investment in direct channels was hurting their business, and they are trying to reverse course. But could all of this have been avoided?





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