Nike Inc.'s announcement in November 2019 that it will no longer sell products directly on Amazon.com Inc. was one of the most significant steps yet in its ongoing digital-first overhaul. The sportswear company has previously signaled that it would sever ties with many smaller retailers to prioritize selling directly to consumers through its own stores and online. But not extending its two-year pilot with the preeminent e-commerce company is a strong statement of intent.
A Nike store in |
Analysts have suggested that other major brands could follow in Nike's footsteps. The presence of fake goods on the platform has been a particular gripe for companies, including German shoemaker Birkenstock, which cited the issue when it stopped selling on Amazon's European sites in 2017.
Amazon will not be panicking just yet, such is its unparalleled reach. But it may feel an increasing need to address the issues that globally recognized brands are highlighting if it is to prevent Nike's departure turning from a one-off to a trend.
Consumer Edge is a weekly collection of critical developments across the automotive; retail; and food, beverage, and tobacco industries. Drawing on exclusive analysis and value-added content from the Consumer News team at S&P Global Market Intelligence, it is published every Thursday. Click here to subscribe.
Chart of the week
Automotive
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Retail
Nike's breakup with Amazon may lead other brands to call it quits: analysts
The athleticwear-maker's departure may lead other high-profile brands to consider breaking up with the e-commerce giant.
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Food, Beverage & Tobacco
US FDA restricts sale of cartridge-based flavored e-cigarettes
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S&P 500 Consumer Staples and Discretionary indexes
