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Sports Direct calls for investigation of Nike-Adidas market dominance

Sports Direct has voiced concerns about the dominance of Adidas and Nike and the high level of supplier power that they have in the sportswear industry.

15 Oct 2019, more…

Take part in CI.N's market data drive and earn rewards

CyclingIndustry.News is seeking to compile a health report of the UK bike retail channel for the third year running.

8 Oct 2019, more…

Tyre Lever Competition Winner Announced

As popular as ever was the Tyre Lever Competition - free to enter on theCytech stand at The Cycle Show all you needed to do to be within a chance of winning either a Home mechanic course or...

27 Sep 2019, more…

Whistler Adventure School, Cytech and Specialized Bicycle Components Canada to Formalise Partnership

Whistler Adventure School is pleased to announce the enhancement of our bicycle mechanic course to incorporate the internationally recognised Cytech certification, offered through Specialized...

26 Sep 2019, more…

London goes traffic-free this Sunday

London continues to test the waters with traffic-free street by taking part in World Car Free Day

18 Sep 2019, more…

HSBC free cycling festival in Edinburgh

HSBC UK Let's ride Edinburgh is back on Sunday the 22nd September with a free cycling festival!

18 Sep 2019, more…

ACT and NearSt announce partnership

The Association of Cycle Traders are delighted to announce a partnership between themselves and the retail technology company NearSt

10 Sep 2019, more…

LCC's Climate Campaign

The LCC believe that climate change is the biggest threat facing humanity and are campaigning for London to become a greener city through having fewer cars and better cycling infrastructure....

3 Sep 2019, more…

Cycling UK's new 800-mile Great North Trail promotes access to the countryside

On the 1st September an 800-mile long distance trail that ranges from the Peak District to as far as the most northerly points in Scotland.

3 Sep 2019, more…

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Sports Direct calls for investigation of Nike-Adidas market dominance

Posted on 15 Oct 2019

Nike recently issued a statement announcing that they will be ceasing supplying independent retailers with Nike branded products within two years. Nike have said that this is due to the retailer sales methods no longer aligning with the US company's own strategy as it shifts its focus online.

A Nike spokesman said: "Nike continually evaluates the marketplace and competitive landscape to understand how we can best serve consumers. As part of this, from time to time we do make adjustments to our sales channels, in order to optimise distribution." 

Sports Direct, majority-owned and run by Mike Ashley, has voiced concerns about the dominance of Adidas and Nike and the high level of supplier power that they have in the sportswear industry. The company is suggesting a Europe-wide investigation into the sportswear industry and what can be done about the Nike- Adidas "extremely strong bargaining position".

There are also concerns that Adidas will follow suit; a source told the Sunday Times: "All those companies that built a business on the back of Nike and Adidas are toast - there's no way they can replace that [business]."

Driving footfall back to the high street

Concerns that major cycling brands may also begin following the Nike distribution decisions have already been voiced. Most brands already have efficient consumer-facing websites that are popular. A 2018 article evaluating the competitiveness of online and physical retailers stated that "The prices that consumer-direct brands are able to achieve are so drastic, it's throwing off the scale by which we evaluate bikes." A solution often preached to shops battling online prices is to become "more service-oriented", although this can fail to bring in the levels of revenue as selling products does.

The solution offered through the recent ACT and NearSt partnership allows LBDs to become more easily accessible by automatically connecting the products currently hidden within stores to the millions of local shoppers searching for them, in real-time, through a simple integration with the Point of Sale system. 

The aim of NearSt is to enables customers to quickly and easily find what they are looking for in-store, supporting local businesses and stemming the flow of business to the online retail giants.

For more information about NearSt and how it can help you boost footfall within your shop visit the ActSmart website.