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Nike CEO says focus on its own website and stores went too far as it embraces wholesale retailers again

·1 min

Nike CEO acknowledges mistake in prioritizing own retail over wholesalers Nike CEO John Donahoe admitted that the company’s exclusive focus on its own stores and website at the expense of wholesalers was a misstep. Donahoe stated in an interview with CNBC that Nike has rectified this approach and is now investing heavily with its retail partners, including Macy’s and DSW. Over the past few years, Nike has aimed to shift its sales model to direct-to-consumer, which has been successful in terms of revenue and customer insights. However, the strategy has its challenges and can put pressure on margins. Some analysts believe Nike’s decision to shun wholesale partners has hindered innovation and negatively impacted Foot Locker. Nike has since reestablished partnerships with retailers as it modifies its stance on wholesalers. The company is currently facing a difficult period, with criticism over falling behind in innovation and market share loss to competitors. Nike has implemented cost-cutting measures and plans to focus on growth areas such as running, the women’s category, and the Jordan brand. Donahoe emphasizes that consumers desire omnichannel experiences and choice between direct and wholesale channels.