Nike focusing more on direct sales, will it impact golf retail?

[gmiller598]

This article will be behind a paywall but most people can see a few free articles before the cookies block it. The article is in reference to Nike opening a retail store here locally and mentions Nike is starting to focus more on direct sales and has already cut ties with some retailers like DSW. I know they have certain releases on their website with limited amounts going to retailers like the Jordans but will the future be all golf shoes being sold directly from Nike and places like the PGASS, GG, and other retailers getting shut out?

https://www.bizjournals.com/columbus/news/2021/04/01/nike-to-open.html

"Nike physical stores are another key enabler to drive our consumer direct acceleration," Nike CFO Matthew Friend said during a March 18 earnings call. "New retail concepts ... will create distinctive, authentic and premium Nike consumer experiences in the marketplace. They will accelerate Nike member acquisition at scale, while unlocking higher retail productivity."

 

[Templet0n]

I can tell you with 100% certainty they apparel sales at golf retail is way way down.

 

[MattyD-MPLS]

The golf side did a strategic alliance with bigger accounts for their reps a couple years ago. The smaller doors(golf shops) were directed to customer service for orders.

It makes sense to go more direct because you are losing out on the profit that shops get.

 

[ddstanford]

I think it makes sense for Nike, sort of like the Apple of sports apparel. I don't see the smaller guys able to do this successfully.

 

[JB]

I can tell you with 100% certainty they apparel sales at golf retail is way way down.

Although that has little to do with Nike opening up more direct in my opinion. They are still an average seller in footwear and while larger in apparel, their green grass business hasn’t made a large impact compared to their spend.

 

[DataDude]

Nike guys are regularly the worst dressed players at events IMO.

 

[McLovin]

Nike guys are regularly the worst dressed players at events IMO.

so much this. i like their footwear quite a bit. but their other apparel is absolutely atrocious.

 

[Templet0n]

Although that has little to do with Nike opening up more direct in my opinion. They are still an average seller in footwear and while larger in apparel, their green grass business hasn’t made a large impact compared to their spend.

its not just Nike but it vary much has to do with these apparel companies as a whole.

they are able to run promotions, sales, limited releases, etc that stores just can’t because they are not able to get the limited items or they purchase the product at a whole sale number expecting to make a certain profit that spontaneous sales by the manufacturer cut deeply into.

It also pulls sales from the stores as buyers start to go to the company site more and more looking for limited releases and sales.
I get it, and it makes sense for the company (Nike) overall, but it is at a detriment to your larger space golf store.

 

[JB]

its not just Nike but it vary much has to do with these apparel companies as a whole.

they are able to run promotions, sales, limited releases, etc that stores just can’t because they are not able to get the limited items or they purchase the product at a whole sale number expecting to make a certain profit that spontaneous sales by the manufacturer cut deeply into.

It also pulls sales from the stores as buyers start to go to the company site more and more looking for limited releases and sales.
I get it, and it makes sense for the company (Nike) overall, but it is at a detriment to your larger space golf store.

I agree with this. I just meant Nike leaving stores for their own doesn’t really impact sales. But totally agree with the rest of what you said.

As we watch hard goods explode, apparel has been flat across the board and down in off course sales. Seeing Nike flounder after their golf arrival and departure doesn’t move the needle much for me personally, as I think their quality is **** compared to so many others, but I know they have a lot of fans.

 

[Canadan]

I really enjoyed having a Nike store locally here. Was sort of a hybrid between a full on store and an outlet style setup. They closed a couple years ago and I was disappointed.

That said, Nike outside of some of their shoe offerings is so far wildly out of my golf attire realm that I don't feel even sort of impacted by anything they do.

 

[Templet0n]

I agree with this. I just meant Nike leaving stores for their own doesn’t really impact sales. But totally agree with the rest of what you said.

As we watch hard goods explode, apparel has been flat across the board and down in off course sales. Seeing Nike flounder after their golf arrival and departure doesn’t move the needle much for me personally, as I think their quality is **** compared to so many others, but I know they have a lot of fans.

yeah Nike individually is small potatoes. It is just the move to direct sales over all.

 

[gmiller598]

The golf side did a strategic alliance with bigger accounts for their reps a couple years ago. The smaller doors(golf shops) were directed to customer service for orders.

It makes sense to go more direct because you are losing out on the profit that shops get.

More money in their corporate big wigs pockets in the name of "streamlined operations" and "maximizing profits" and less in the hands of those that could use it more.

 

[esg777]

it is simple the retail landscape is changing. Nike will work with the best retailers within certain segments of the market and rid them selves of not good retailers. DTC is priority because of the margin dollars. They will not get rid of golf retailers, they are just doing the wholesale business without reps. These strategies are about making there shareholders happy.

 

[MattyD-MPLS]

More money in their corporate big wigs pockets in the name of "streamlined operations" and "maximizing profits" and less in the hands of those that could use it more.

It would be awesome to see more small mom and pop shops do well. I have seen some cool shirts on Instagram and when I purchase golf shirts in the future, I am going to remember them.

The ease of buying corporate is engrained for lost.

 

[Bryndom]

Nike just had to produce a better shirt. They have good shoes and the hat are fine. They need better shirts and I think they’d be ok. Their choices there are ..questionable at best from a design standpoint and they can’t stack up with Puma and their CloudSpun materials

 

[esg777]

Nike just had to produce a better shirt. They have good shoes and the hat are fine. They need better shirts and I think they’d be ok. Their choices there are ..questionable at best from a design standpoint and they can’t stack up with Puma and their CloudSpun materials

golf is such a small piece of Nike’s business they will not over haul the business

 

[Snooksman]

I had Nike golf shoes and a tiger woods polo.
The glue came apart on the shoes and shirt.
I'll pass on Nike.

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