CEO, Nike, Mark Parker said at the annual Investor’s Day summit that the company will focus its efforts on just 40 key retail partners.. The company currently has 30,000 retail partners with 110,000 points of distribution.
The change comes as Nike prioritizes direct-to-consumer sales through its website, apps and Nike-branded retail stores, as well as the 40 select retail partners. Those partners will be those who are willing to create a unique, branded Nike space within the store and have specific Nike-trained employees to assist with sales.
Nike’s plan is to make this shift over the next five years. The rest of Nike’s retailers will not be shed – at least not immediately. Still, Nike clearly expects some of its retailers to drop out, or go out of business.
The company is also drastically ramping up its online efforts and hopes to get 30 per cent of its revenue from e-commerce by 2022 – up from 15 per cent what it is at present.