These days you are probably more likely to catch them at their own stores or on their websites than at moms and pops and small chains.
The change means shoppers will find fewer places to buy from top brands and also puts pressure on retailers who will no longer be able to stock much sought-after shoes and clothing on their shelves, experts say. retail.
Selling directly to customers allows brands to make more money, control their prices, and showcase products exactly the way they want in their store displays. They can also prevent their labels from being discounted too heavily, which could weaken their branding and pricing power.
By offering fewer wholesale products, brands can also reach the right place for their business – high demand and tight supply.
The exit strategies of other retailers began long before the Covid-19 pandemic, of course, but have accelerated over the past two years.
“Even if the brands were not strongly focused on direct [sales] pre-Covid, now they are, ”said Susan Anderson, analyst at B. Riley Securities.
In addition to tightening up their wholesale partners and expanding online, many of these brands are opening new stores.
Some, like Under Armor, Adidas and Crocs sell to Amazon, but Canada Goose and Ralph Lauren have stayed away from the online giant. Some brands have been hesitant to sell on Amazon for fear of not having control over the customer experience.
Nike leaves DSW and Zappos
Among major sports brands, Nike was one of the first to report that it would reduce the number of traditional retailers it sold to and focus on growing its direct-to-consumer business.
Nike is a raffle and if stores don’t offer it, loyal Nike customers will buy elsewhere. (The company also owns the Jordan and Converse brands.)
DSW believes it can replace Nike by increasing sales of other sports brands, CEO Roger Rawlins said on a conference call with an analyst last month. “We are doing really well across our sports portfolio,” he said.
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