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Fashion January, 3 2014

Nike and adidas Refusing to Supply Small Sports Shops in London

According to the Standard, Nike and adidas are refusing to supply shoes and clothing to any sports shop that does not sell more than £25,000 (approximately $41,060 USD) per year of their products. The companies’ decision is said to affect around 50 independent sellers in London. In an email, adidas told suppliers it was ditching smaller accounts because analysis showed they were “not efficient.” Affected retailers have been told they can reapply for an account but will have to provide business plans to show how the £25,000 a year target would be reached, as well as attend quarterly sports shows and pass a “Distribution Trading Policy check.”

A spokesman for adidas said: “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.”

Nike said its annual minimum order requirement was in place to “support the necessary operational costs associated with delivering the best product presentation and consumer experience at the point of sale.”

Selectism