The question now is whether other Amazon partners follow Nike’s lead
— a move that signaled the company is going even more aggressively after e-commerce sales, apparently without Amazon’s help.
Amazon also operates as a traditional retailer, buying goods from wholesalers and selling them to customers. “Nike has enormous reach and its products are in demand, so it can afford to be selective about where its products are distributed because customers will come find Nike where it is offered,” said Neil Saunders, an analyst at GlobalData Retail. “I don’t think as many brands can be as selective as Nike.”
The news of the Amazon tie-up, which Nike executives called a “small pilot,” sent shoe-retailer stocks tumbling and left many wondering if other major Amazon holdouts would quickly follow. Shortly after its Amazon pilot began, Nike unveiled plans to overhaul its retail strategy. With more attention aimed at direct-to-consumer avenues, particularly the Nike app and Nike.com, executives said the company would drastically reduce the number of retailers it partnered with.
The Wall Street Journal reported at the time that Amazon was one of those 40 that Nike intended to prioritize.
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