
Why it will get harder to find Nike products in retailers and stores The brand's new strategy focuses on direct sales channels, to the exclusion of retailers and department stores
At least until 2017, Nike's sales channels were multiple, often almost contradictory. While for the most exclusive releases the brand turned to the SNKRS app and to selected and high fashion retailers, the other Nike products could be found nearly everywhere, in big department stores, in sporting goods stores, even in small stores in not so big cities. This layered and branched strategy meant that just 10 years ago 84% of Nike's sales came from wholesale. On the other hand, sales relating to the direct channels of the brand, such as the website or flagship stores, amounted to only 16%. However, this dynamic is rapidly changing, so much so that in the fiscal year of 2021, which ended on May 31, direct sales accounted for 39% of all Nike sales, while those from external retailers accounted for 61%.
Nike didn't want to give up external partners to increase its sales but applied a new choice criterion, that would keep the identity and above all the intentions of the brand intact. According to Nike, the strategy will continue for the next few years and by 2025 direct sales will amount to 60% of the total.