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So, it looks like Nike may be doing something about what some consider to be corrupt practices at a lot of Mom and Pops type stores. On Friday, they exercised their right to terminate the accounts of several Philadelphia, PA and Camden, NJ area retailers. No specific reason was given yet, and store owners are still looking for answers. There looks to be more of these cuts coming in the near future.
I know a lot of people here benefit from the mom n pop types stores because we have been giving them our business for a long time. While most customers and the new generation on twitter are probably praising this move, NT seems like a community that will be negatively affected by this change.
Nike hasn't said why, but speculation is that it is because of early sales, selling for insane, inflated prices, and overall bad business practices with no concern for the customers of these account owners. I am not stating my view on either side of this argument right now, and I know there are a lot of guys in here that will love this move... and a lot of guys that are going to be up in arms about losing their connect. There will even be people whose pockets are going to take a direct hit because they won't be getting those FSR's out the backdoor on every release anymore.
Will this drive down prices in the resell market? Increase availability to customers? Or just make for a mess with fewer locations available to buy your releases from?
The 2 links below tell the story so far, and I will paste the stories in here as well.
From Sneaker Bar Detroit:
Nike is giving the boot to several small, local retailers. Without explanation.
CBS3 first reported Friday afternoon that the athletic wear company told select area stores that as of June 30, their accounts are being cut off. The reason why remains unclear.
Business owners throughout the Philadelphia and Camden regions have received emails from the sporting apparel and footwear company saying that the retailer is “exercising its right to terminate your accounts.” It’s unknown whether Nike is taking the same approach with stores in other cities.
Keith Sherman, store manager of the three Real McCoy Athletic Footwear locations throughout the region (in Olney, on Cecil B. Moore Avenue and in Camden), says Nike products account for 75 to 80 percent of his store’s sales. “Those numbers are staggering,” he said over the phone Friday.
Even more mysterious is the manner in which Nike is handling the situation.
“We had scheduled a meeting at the Nike Headquarters in Portland, Oregon with our sales rep,” Sherman said. “And that meeting was canceled that day — they wouldn’t even see us,” he added. The account termination email arrived in store owner William Chung’s inbox shortly after the canceled meeting in Portland. The notice listed “no reasons whatsoever” as to why Nike was severing ties with the shop. Sherman says Real McCoy Athletic Footwear has been doing “good business” with Nike for over 23 years.
Currently, small “mom-and-pop” shops like Top Shoes, Center City Sports and Shoe Plus are among the only known stores affected.
Nike said in a statement released to CBS3:
“Nike is constantly evaluating its distribution needs with a view to enhancing its brand. This includes adapting our distribution strategy to the changes in our consumers’ purchasing behavior, the retail landscape, and our brand strategy.”
Nike did not return our request for comment on Friday. More to come.
Source: Philly
http://sneakerbardetroit.com/2013/04/nike-cuts-ties-with-several-small-locations/
And a similar story from CBS channel 3 affiliate in Philadelphia:
One of the largest makers of athletic gear in the world is pulling its items off some local store shelves.
In an Eyewitness News exclusive, retailers tell us they believe they are being discriminated against by Nike.
It’s the last thing store owners ever expected.
They are receiving letters and emails from Nike, telling them they can no longer sell their gear. They say it’s a crushing blow to the business and wonder why.
For 16 years, Top Sportswear
served shoppers in North Philadelphia. In Olney, Real McCoy Sports for 23 years and Shoe Plus Athletic Footwear has been around the Nicetown-Tioga Neighborhood for 35 years.
And shoppers like Regetta and Blair Simmons appreciate having these stores within walking distance from their homes
Blair Simmons of North Philadelphia said, “They give us good service here and they treat us right here.”
But one by one, according to business owners, six stores so far in Philadelphia and Camden have gotten emails from Nike: One of which read in part, “No disrespect to our 23 years of relationship” and letters which read, “Effective June 30th.. Nike is exercising its right to terminate your accounts.”
Keith Sherman, Real McCoy Sports
Manager, “As far as sales for this store, you’re talking about 75-80% Nike. So you cut out the Nike that pretty much cuts me out too.”
Sherman has managed the Olney Sporting Goods
store for 21 years and hearing Nike explain in an email quote, “We are a premium brand and our brand deserves the best platform” is troubling.
Sherman said, “We are the small mom/pop shops, we’re the ones being cut out.”
In a statement, Nike told us:
“Nike is constantly evaluating its distribution needs with a view to enhancing its brand. This includes adapting our distribution strategy to the changes in our consumers’ purchasing behavior, the retail landscape, and our brand strategy.”
But for the retailers we spoke with, their interpretation is much different.
Sherman explained, “I mean, us, urban, the hood.. We built that, we built Nike. We helped that brand get up there and this is what we get in return?”
Nike is so far confirming that it will no longer be accepting new orders from some accounts. So we asked Nike why these neighborhood stores were chosen and in all, how many accounts are being terminated but we have not yet heard back from them.
http://philadelphia.cbslocal.com/20...lling-its-items-off-some-local-store-shelves/
What do you guys think of the changes and how could they affect you locally?
I know a lot of people here benefit from the mom n pop types stores because we have been giving them our business for a long time. While most customers and the new generation on twitter are probably praising this move, NT seems like a community that will be negatively affected by this change.
Nike hasn't said why, but speculation is that it is because of early sales, selling for insane, inflated prices, and overall bad business practices with no concern for the customers of these account owners. I am not stating my view on either side of this argument right now, and I know there are a lot of guys in here that will love this move... and a lot of guys that are going to be up in arms about losing their connect. There will even be people whose pockets are going to take a direct hit because they won't be getting those FSR's out the backdoor on every release anymore.
Will this drive down prices in the resell market? Increase availability to customers? Or just make for a mess with fewer locations available to buy your releases from?
The 2 links below tell the story so far, and I will paste the stories in here as well.
From Sneaker Bar Detroit:
Nike is giving the boot to several small, local retailers. Without explanation.
CBS3 first reported Friday afternoon that the athletic wear company told select area stores that as of June 30, their accounts are being cut off. The reason why remains unclear.
Business owners throughout the Philadelphia and Camden regions have received emails from the sporting apparel and footwear company saying that the retailer is “exercising its right to terminate your accounts.” It’s unknown whether Nike is taking the same approach with stores in other cities.
Keith Sherman, store manager of the three Real McCoy Athletic Footwear locations throughout the region (in Olney, on Cecil B. Moore Avenue and in Camden), says Nike products account for 75 to 80 percent of his store’s sales. “Those numbers are staggering,” he said over the phone Friday.
Even more mysterious is the manner in which Nike is handling the situation.
“We had scheduled a meeting at the Nike Headquarters in Portland, Oregon with our sales rep,” Sherman said. “And that meeting was canceled that day — they wouldn’t even see us,” he added. The account termination email arrived in store owner William Chung’s inbox shortly after the canceled meeting in Portland. The notice listed “no reasons whatsoever” as to why Nike was severing ties with the shop. Sherman says Real McCoy Athletic Footwear has been doing “good business” with Nike for over 23 years.
Currently, small “mom-and-pop” shops like Top Shoes, Center City Sports and Shoe Plus are among the only known stores affected.
Nike said in a statement released to CBS3:
“Nike is constantly evaluating its distribution needs with a view to enhancing its brand. This includes adapting our distribution strategy to the changes in our consumers’ purchasing behavior, the retail landscape, and our brand strategy.”
Nike did not return our request for comment on Friday. More to come.
Source: Philly
http://sneakerbardetroit.com/2013/04/nike-cuts-ties-with-several-small-locations/
And a similar story from CBS channel 3 affiliate in Philadelphia:
One of the largest makers of athletic gear in the world is pulling its items off some local store shelves.
In an Eyewitness News exclusive, retailers tell us they believe they are being discriminated against by Nike.
It’s the last thing store owners ever expected.
They are receiving letters and emails from Nike, telling them they can no longer sell their gear. They say it’s a crushing blow to the business and wonder why.
For 16 years, Top Sportswear
served shoppers in North Philadelphia. In Olney, Real McCoy Sports for 23 years and Shoe Plus Athletic Footwear has been around the Nicetown-Tioga Neighborhood for 35 years.And shoppers like Regetta and Blair Simmons appreciate having these stores within walking distance from their homes
Blair Simmons of North Philadelphia said, “They give us good service here and they treat us right here.”
But one by one, according to business owners, six stores so far in Philadelphia and Camden have gotten emails from Nike: One of which read in part, “No disrespect to our 23 years of relationship” and letters which read, “Effective June 30th.. Nike is exercising its right to terminate your accounts.”
Keith Sherman, Real McCoy Sports
Manager, “As far as sales for this store, you’re talking about 75-80% Nike. So you cut out the Nike that pretty much cuts me out too.”Sherman has managed the Olney Sporting Goods
store for 21 years and hearing Nike explain in an email quote, “We are a premium brand and our brand deserves the best platform” is troubling.Sherman said, “We are the small mom/pop shops, we’re the ones being cut out.”
In a statement, Nike told us:
“Nike is constantly evaluating its distribution needs with a view to enhancing its brand. This includes adapting our distribution strategy to the changes in our consumers’ purchasing behavior, the retail landscape, and our brand strategy.”
But for the retailers we spoke with, their interpretation is much different.
Sherman explained, “I mean, us, urban, the hood.. We built that, we built Nike. We helped that brand get up there and this is what we get in return?”
Nike is so far confirming that it will no longer be accepting new orders from some accounts. So we asked Nike why these neighborhood stores were chosen and in all, how many accounts are being terminated but we have not yet heard back from them.
http://philadelphia.cbslocal.com/20...lling-its-items-off-some-local-store-shelves/
What do you guys think of the changes and how could they affect you locally?
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Hopefully they crack down on all shady spots.
