The streets have been buzzing, and the sneaker community has been causing quite a stir. When it comes to getting your hands on the latest Nike releases, your options are shrinking as Nike pulls some of its products from Foot Locker. According to recent Forbes publications, the movie has been projected since last year.
According to Foot Locker’s official disclosures for 2021, Nike products accounted for 70% of the retailer’s revenues. This year, 60 percent of its retail purchases will be made.
Although many people believe Nike is abandoning the brand in favor of Foot Locker, we can assure you that this is not the case. Nike products will continue to be sold at Foot Locker, accounting for up to 55 percent of the retailer’s merchandise sales in the following year.
“Nike is and will continue to be one of our most significant and crucial partners,” a Foot Locker spokesman told Forbes.
We have no plans to stop cooperating with them.” As word of the adjustments spread, the impact of a limited supply of Nike items at Foot Locker has already taken a major toll on the company. The stock dropped by 30% right away, but part of it has since been recovered.
Foot Locker has already forecasted an 8% to 10% drop in revenue this year. Other brands such as Adidas, Puma, New Balance, and Crocs are being considered by the New York-based corporation.
“That’s a tough dynamic to overcome,” Nike’s CEO, Richard Johnson, told analysts last week of the company’s reforms. Nike has made cuts to a number of retailers, including Foot Locker.
According to Forbes, since cutting back on third-party sales, the Oregon-based company has eliminated many big shops, including DSW, Zappos, Dillard’s, Urban Outfitters, and Shoe Show.
