Nike will no longer be supplying products to small sport shop owners such as ones found at Queensway Shopping Centre and Peninsula Plaza from next year.
According to a report by The Business Times, shop owners who have relied on bigger brands such as Nike’s to attract customers will find it difficult to survive following the change.
Many of these shop owners are crying foul, particularly after supporting the brand for years, following strict rules set by the brand such as not defaulting on payments and not carrying counterfeits.
The move is expected to drive many of these “mom-and-pop” shops out of business, with bigger chains gaining significant advantage in carrying Nike products.
As mentioned in the BT report, industry leaders believe that the move is to strengthen Nike’s relationship with bigger retailers while others say the decision signals Nike’s focus on its online store, having launched its popular NIKEiD offering in Singapore last month.
Queensway Shopping Centre and its array of smaller sport shops have long become a haven for locals to source for sporting equipment, particularly for football.
While the move may significantly impact sales for these retailers, it presents an opportunity for other sporting brands such as adidas, Puma and Under Armour to secure more prominent positions at these smaller sports shops.