Nike to shut down 150 stores in India
American sportswear brand, Nike has gone on a spree to
shut down stores in India bringing the number down to a mere
150. And it may further slash it to 1,000.
The company garnered a revenue of US $ 10.7 billion, aided by
high sales in China during the first quarter ended 31 August.
However, it has withdrawn from most of its franchise agreements
in India and has decided to go along with only one strategic
partner New Delhi-based SSIPL (Sports Station), which will
operate its offline stores.
Nike is looking to monetise more through its online sales for
which it had previously partnered with Amazon and Flipkart along
with its official website.
Subsequently, the company downsized its workforce in India,
asking many to join its operations in Southeast Asia. Currently,
its rivals Puma and Adidas run around 360 and 600-700
stores, respectively, in India.
The company is going through a major global restructuring with
more focus being given to 12 key global cities including New
York, Shanghai, London, Tokyo, Paris and Mexico City so as to
achieve 80 per cent of its projected growth by 2020.
Notably, no Indian city is part of the above list.
SSIPL and Nike have had a long-standing relationship as before
the official entry of the brand in India, SSIPL had brought Nike
products into the domestic market.
Nike India notched up sales of around Rs. 829 crore during the
year ended March 2018, trailing Adidas (Rs. 1,131 crore) and
Puma (Rs. 1,157 crore – calendar year 2018).