As if running a small, independent sneaker shop weren’t tough enough already, Nike and adidas recently dealt an additional blow to small-scale commerce by severing ties with those accounts unable to sell £25,000 GBP (approximately $41,000 USD) worth of sportswear in a 12-month timeframe. As The London Evening Standard reported today, the new crackdown is expected to impact a bevy of local retailers with Ace Sports owner Nick Mavrides telling the Standard:
What they are doing is wrong. I have been an adidas and Reebok (which is owned by adidas) account holder for over 25 years and have always supported the brands. They just want to get into bed with the big chains — JD Sports, Foot Locker — and they don’t care about anyone else. Their action seriously affects my ability to conduct my business. It will have a catastrophic effect and force me to close.
A spokesman for adidas told the London publication that “This decision was not taken lightly, but it is in line with our global commercial policy and was made to ensure our business is solid and sustainable, and operates in the most efficient way.” In commenting on its own policy, Nike added that its annual minimum order requirement is meant to “support the necessary operational costs associated with delivering the best product presentation and consumer experience at the point of sale.”
- The London Evening Standard