Indie retailers in London were dealt a big blow at the hands of Adidas and Nike recently, as the brand’s severed ties with the accounts.
According to the London Evening Standard, the companies decided to close the accounts of indie sneaker shops unable to move £25,000 GBP (approximately $41,000 USD) worth of product within a 12-month timeframe.
The minimum order requirement is expected to impact a long list of local retailers, including Ace Sports who questions the practice.
“What they are doing is wrong?” owner Nick Mavrides asked the Standard. “I have been an adidas and Reebok (which is owned by adidas) account holder for over 25 years and have always supported the brands. They just want to get into bed with the big chains — JD Sports, Foot Locker — and they don’t care about anyone else. Their action seriously affects my ability to conduct my business. It will have a catastrophic effect and force me to close.”
A rep for Adidas told the paper the decision to stray away from smaller accounts comes from data showing it wasn’t “efficient” in their operating efforts. “This decision was not taken lightly, but it is in line with our global commercial policy and was made to ensure our business is solid and sustainable, and operates in the most efficient way,” the statement read, via email.
Nike added that its annual minimum order requirement is meant to “support the necessary operational costs associated with delivering the best product presentation and consumer experience at the point of sale.”