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After exiting Macy’s in 2021, Nike seemed to be on a path toward independence and pursuing a DTC-focused strategy. In 2022, the retailer also cut ties with DSW and other wholesale partners.
But in a surprising turn of events, Nike is trying to rebuild the wholesale bridges it burned, starting with DSW, where it will start reselling its shoes this October, in stores and online.
“They’ve been great partners and we’re excited to be able to offer that across stores and digital,” DSW parent company Designer Brands CEO Doug Howe said on a June 8 call with analysts. “We’ll thoughtfully, with their partnership, build that business back.”
And DSW is not the only one. Nike will also start selling at Macy’s again. This fall, the retailer will display a selection of Nike apparel for men, women, and kids, alongside bags and gear, across “key locations nationwide” CEO Jeff Gennette said in a June 1 earnings call.
Nike has additionally reinvigorated its heavily toned-down relationship with Foot Locker.
Nike products accounted for 70% of Foot Locker’s sales in 2021, but Foot Locker’s earnings report in February 2022 indicated that Nike was distancing itself from the retailer. But since last September, the two have reportedly spent months “revitalizing” their relationship.
Ok, but why? For DSW, Foot Locker, and Macy’s, as well as Nike’s other wholesale partners, the impetus has been obvious: to help pick up sliding sales.
Meanwhile, Nike’s revised partnerships will help the brand recapture falling demand and push off excess inventory through a variety of channels. But will it work? Nike is optimistic.
“With strong traffic and retail sales growth, and reduced inventory buys for the spring and summer seasons, we are increasingly confident that we will exit the year with healthy inventories across the marketplace,” Nike CFO and EVP Matt Friend told investors on a conference call in March.