Amazon will begin selling Nike shoes directly through a brand-registry programme designed to keep counterfeit goods off the site.
The approach lets Nike take greater control over how its products are sold, helping ensure that knockoff shoes aren’t offered by third parties on the e-commerce marketplace, a source said.
Shoes are popular products for counterfeiters, and Nike’s global brand is an especially alluring target. That has put pressure on the athletic-apparel giant to police online sales more aggressively.
Lindsay Drucker Mann, an analyst at Goldman Sachs, had said Nike may be close to forging a closer relationship with Amazon. Currently, Nike is available on Amazon’s Zappos site, but not directly through the parent company.
It is unclear how much more Nike merchandise might ultimately flow through Amazon, but the prospect of a special relationship between the two companies sent US shoe-retailer stocks tumbling.
Foot Locker plunged as much as 11 per cent, while Finish Line fell 5.9 per cent. Dick's Sporting Goods dropped more than 9 per cent. European sellers Sports Direct and JD Sports Fashion declined as well.
Nike gained as much as 1.8 per cent to $52.49 on Wednesday, bringing its year-to-date gain to more than 3 per cent. Amazon gained as much as 0.6 per cent to $998.70.
The Amazon partnership is part of Nike’s push to boost sales directly to consumers to revive slowing growth that has weighed on its stock. Just last week, Nike announced a structural overhaul, including cutting 1,400 jobs.
Bloomberg
