Nike Says No Thanks to Sears
By George Anderson
Nike has decided to pull its products from Sears in what many believe is the manufacturer’s move to prevent its branded products winding up in Kmart stores.
The sports apparel manufacturer has jealously guarded the premium-priced heritage of its trademark “swoosh” products. It recently announced a deal with Wal-Mart to create a line of athletic shoes and sports apparel under the Starter brand. Green Bay Packer quarterback Brett Favre has been signed on to endorse the Starter line.
Anthony Chukumba, an analyst with Morningstar, told Reuters, “I’m very surprised by this. Sears has always prided itself on having name-brand athletic footwear including Nike, New Balance and Adidas. Clearly this hurts them.”
“Maybe this is Nike saying, ‘I don’t trust (Sears Chairman) Eddie Lampert and I don’t know where the stores are going, so it’s not worth taking the risk of damaging the brand
image,'” he said.
Moderator’s Comment: What do you think is behind Nike’s decision to pull its brand from Sears? Do you think other brand manufacturers will follow suit?
Will Nike pull its “swoosh” from other mid-level department stores such as Kohl’s as it builds on its premium image? –
George Anderson – Moderator
- Nike says to pull products from Sears stores – Reuters
- NFL MVP Brett Favre Signs With Starter To Launch New Line Of Performance Footwear At Wal-Mart