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Nike and Adidas are two of the most popular brands in the world when it comes to sneakers and athletic apparel. However, these days, items from these two are getting harder to find and some people are just lucky to find something they are looking for on the company's websites or brick and mortar stores.
According to CNN Business, the main reason why customers may be finding it harder to look and buy Nike and Adidas items is that the brands are two of the companies that are withdrawing from retail outlets. They are slashing the number of retailers that can sell their products thus customers can only find their goods in select stores.
It was reported that Nike and Adidas are doing this as part of their plan to get customers to purchase items from them directly. They want shoppers to buy from their own outlets and a small group of affiliate retail partners.
Apparently, with the move, customers will not be able to see Nike and Adidas goods in some places where they are usually available in the past. Many retailers will not be releasing items from them as the companies have already pulled out their products. This means there will be no more stocks of Nike and Adidas shoes and athletic apparel in common sporting goods stores and retail outlets.
The firms made the decision since they could make more money from selling directly to customers. They will also have more control over prices and how their products are being sold.
The labels will also prevent overpricing or heavy discounts on their products that some retailers do to get more customers but this practice can harm the image of the brands. Experts said that brands could really gain high demand if their items are only available in fewer outlets, including their own stores and online shops.
It was added that the tactic to withdraw from retailers was effective before the coronavirus pandemic struck so, it may also work today. "Even if brands weren't heavily focused on direct [sales] pre-Covid, now they are," Analyst at B. Riley Securities, Susan Anderson, said.
Meanwhile, just last month, Nike pulled out of DSW. It was reported that the company will stop distributing its sneakers to be sold at one of America's largest shoe chains. Nike will just focus on a small number of outlets such as Dick's Sporting Goods (DKS) and its own shops from now on.
