Nike is cutting ties with several small locations in the Philly area.

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I wonder if this is gonna happen in other cities across the country and does this mean the bigger chains like footlocker will get more pairs in that area?
 
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They are going to kill some small business owners with this.
I agree it said in the article that 80% of their business was from Nike products.

I don't know if true but a GM at the House of Hoops I go to has been telling me this was gonna  start happening over a year ago.  He said it was due to stores putting most of their stock on ebay, or  selling them for double the retail price and  also for selling them early.   He said stores weren't following Nike's rules when it comes to selling their products and Nike was getting sick of the negative feedback so they were gonna start to put their foot down by taking away their accounts.  
  If that's the case Nike better do a better job with there own stores.
 

jchambers

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They are going to kill some small business owners with this. :smh:

I agree it said in the article that 80% of their business was from Nike products.


I don't know if true but a GM at the House of Hoops I go to has been telling me this was gonna  start happening over a year ago.  He said it was due to stores putting most of their stock on ebay, or  selling them for double the retail price and  also for selling them early.   He said stores weren't following Nike's rules when it comes to selling their products and Nike was getting sick of the negative feedback so they were gonna start to put their foot down by taking away their accounts.   :smh:   If that's the case Nike better do a better job with there own stores.

It really all boils down to Nike's greed. They know that they can just put the shoes on their site for retail, and they don't have to break off a cut to the middle man. They are consolidating. I can't knock the hustle, but it sucks for these small retailers who are trying to get by in an already messed up economy.
 
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It really all boils down to Nike's greed. They know that they can just put the shoes on their site for retail, and they don't have to break off a cut to the middle man. They are consolidating. I can't knock the hustle, but it sucks for these small retailers who are trying to get by in an already messed up economy.
I agree.  If 80% percent of their business was from selling Nike products I don't see how their mom and pop store will survive now. 
  Just gonna put more people out of a job.
 

ohmygosher

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They are going to kill some small business owners with this. :smh:

I agree it said in the article that 80% of their business was from Nike products.


I don't know if true but a GM at the House of Hoops I go to has been telling me this was gonna  start happening over a year ago.  He said it was due to stores putting most of their stock on ebay, or  selling them for double the retail price and  also for selling them early.   He said stores weren't following Nike's rules when it comes to selling their products and Nike was getting sick of the negative feedback so they were gonna start to put their foot down by taking away their accounts.   :smh:   If that's the case Nike better do a better job with there own stores.

It really all boils down to Nike's greed. They know that they can just put the shoes on their site for retail, and they don't have to break off a cut to the middle man. They are consolidating. I can't knock the hustle, but it sucks for these small retailers who are trying to get by in an already messed up economy.
I'm thinking this move was pushed by footlocker inc. Their stores were probably hurting in the area, so they told Nike to take care of it. I can't think of another reason to cut ties with a 23 year old account. If it was about selling early, wouldn't it make sense to attack NY first?
 
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jchambers

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It really all boils down to Nike's greed. They know that they can just put the shoes on their site for retail, and they don't have to break off a cut to the middle man. They are consolidating. I can't knock the hustle, but it sucks for these small retailers who are trying to get by in an already messed up economy.

I agree.  If 80% percent of their business was from selling Nike products I don't see how their mom and pop store will survive now.  :smh:   Just gonna put more people out of a job.

If 80% of their sales are Nike products, and they no longer carry them, they are through. That's like an Italian restaurant not being allowed to sell noodles anymore.
 

jchambers

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They are going to kill some small business owners with this. :smh:

I agree it said in the article that 80% of their business was from Nike products.


I don't know if true but a GM at the House of Hoops I go to has been telling me this was gonna  start happening over a year ago.  He said it was due to stores putting most of their stock on ebay, or  selling them for double the retail price and  also for selling them early.   He said stores weren't following Nike's rules when it comes to selling their products and Nike was getting sick of the negative feedback so they were gonna start to put their foot down by taking away their accounts.   :smh:   If that's the case Nike better do a better job with there own stores.

It really all boils down to Nike's greed. They know that they can just put the shoes on their site for retail, and they don't have to break off a cut to the middle man. They are consolidating. I can't knock the hustle, but it sucks for these small retailers who are trying to get by in an already messed up economy.
I'm thinking this move was pushed by footlocker inc. Their stores were probably hurting in the area, so they told Nike to take care of it. I can't think of another reason to cut ties with a 23 year old account. If it was about selling early, wouldn't it make sense to attack NY first?

Yeah, Footlocker was one of the first things that came to mind.
 
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Nike is giving the boot to several small, local retailers. Without explanation.

CBS3 first reported Friday afternoon that the athletic wear company told select area stores that as of June 30, their accounts are being cut off. The reason why remains unclear.

Business owners throughout the Philadelphia and Camden regions have received emails from the sporting apparel and footwear company saying that the retailer is "exercising its right to terminate your accounts." It's unknown whether Nike is taking the same approach with stores in other cities.

Keith Sherman, store manager of the three Real McCoy Athletic Footwear locations throughout the region (in Olney, on Cecil B. Moore Avenue and in Camden), says Nike products account for 75 to 80 percent of his store's sales. "Those numbers are staggering," he said over the phone Friday.

Even more mysterious is the manner in which Nike is handling the situation.

"We had scheduled a meeting at the Nike Headquarters in Portland, Oregon with our sales rep," Sherman said. "And that meeting was canceled that day — they wouldn't even see us," he added. The account termination email arrived in store owner William Chung's inbox shortly after the canceled meeting in Portland. The notice listed "no reasons whatsoever" as to why Nike was severing ties with the shop. Sherman says Real McCoy Athletic Footwear has been doing "good business" with Nike for over 23 years.

Currently, small "mom-and-pop" shops like Top Shoes, Center City Sports and Shoe Plus are among the only known stores affected.

Nike said in a statement released to CBS3:

“Nike is constantly evaluating its distribution needs with a view to enhancing its brand. This includes adapting our distribution strategy to the changes in our consumers’ purchasing behavior, the retail landscape, and our brand strategy.”

Nike did not return our request for comment on Friday. More to come.

Wow :smh:
 
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If 80% of their sales are Nike products, and they no longer carry them, they are through. That's like an Italian restaurant not being allowed to sell noodles anymore.
Yep I agree.  I feel sorry for those small business owners and the workers who are gonna lose their jobs to this.   I hope this isn't a nationwide thing that Nike is gonna be doing.   It will put hundreds of mom and pops stores out of business.
 

jchambers

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If 80% of their sales are Nike products, and they no longer carry them, they are through. That's like an Italian restaurant not being allowed to sell noodles anymore.

Yep I agree.  I feel sorry for those small business owners and the workers who are gonna lose their jobs to this.   I hope this isn't a nationwide thing that Nike is gonna be doing.   It will put hundreds of mom and pops stores out of business.

That will be crazy if they do it nationwide. The end of an era. :smh:
 
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They are going to kill some small business owners with this.
I agree it said in the article that 80% of their business was from Nike products.

I don't know if true but a GM at the House of Hoops I go to has been telling me this was gonna  start happening over a year ago.  He said it was due to stores putting most of their stock on ebay, or  selling them for double the retail price and  also for selling them early.   He said stores weren't following Nike's rules when it comes to selling their products and Nike was getting sick of the negative feedback so they were gonna start to put their foot down by taking away their accounts.  
  If that's the case Nike better do a better job with there own stores.
I know some of these stores.  These stores aren't getting your All Star packs, your OG 1 Royals, or your Corks.  These stores are getting GR release Jordans, Lebrons, and Air Maxes.  Do they sell early sometimes, yes.  But these aren't the stores that are taking limited edition releases and selling them on eBay.  These stores survive selling low and midrange Nike product to the poorer communities.  It's a real shame to see Nike doing this.  I understand Nike wanting to position themselves as a top tier product, but like the one store owner in the video said, it's the "hood" that made Nike what it is today.  These mom and pop stores will not survive without a Nike contract.  It's a real shame to see.
 

jchambers

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They are going to kill some small business owners with this. :smh:

I agree it said in the article that 80% of their business was from Nike products.


I don't know if true but a GM at the House of Hoops I go to has been telling me this was gonna  start happening over a year ago.  He said it was due to stores putting most of their stock on ebay, or  selling them for double the retail price and  also for selling them early.   He said stores weren't following Nike's rules when it comes to selling their products and Nike was getting sick of the negative feedback so they were gonna start to put their foot down by taking away their accounts.   :smh:   If that's the case Nike better do a better job with there own stores.
I know some of these stores.  These stores aren't getting your All Star packs, your OG 1 Royals, or your Corks.  These stores are getting GR release Jordans, Lebrons, and Air Maxes.  Do they sell early sometimes, yes.  But these aren't the stores that are taking limited edition releases and selling them on eBay.  These stores survive selling low and midrange Nike product to the poorer communities.  It's a real shame to see Nike doing this.  I understand Nike wanting to position themselves as a top tier product, but like the one store owner in the video said, it's the "hood" that made Nike what it is today.  These mom and pop stores will not survive without a Nike contract.  It's a real shame to see.

And until the "hood" turns on them, they will keep on treating the consumers like idiots and ******** on small businesses.
 
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They are going to kill some small business owners with this. :smh:

I agree it said in the article that 80% of their business was from Nike products.


I don't know if true but a GM at the House of Hoops I go to has been telling me this was gonna  start happening over a year ago.  He said it was due to stores putting most of their stock on ebay, or  selling them for double the retail price and  also for selling them early.   He said stores weren't following Nike's rules when it comes to selling their products and Nike was getting sick of the negative feedback so they were gonna start to put their foot down by taking away their accounts.   :smh:   If that's the case Nike better do a better job with there own stores.

It really all boils down to Nike's greed. They know that they can just put the shoes on their site for retail, and they don't have to break off a cut to the middle man. They are consolidating. I can't knock the hustle, but it sucks for these small retailers who are trying to get by in an already messed up economy.
Took the words right out of my mouth.
 
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Feel bad for the owners but they did break their contract with Nike by selling early, although this goes on EVERYWHERE, ESPECIALLY in NYC. Although I believe they should have been punished (suspension, loss of JB account?), they shouldn't have had their accounts terminated. 
 
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I'm assume its because of the way some of the stores handle business. Before the hype machine took over Real McCoy use to be one of the best spots. They would hold on to stuff that didn't sell in that era then re-release it at random. I mean stuff dating back to the early 90's and possibly earlier. Then once the hype around sneakers started to develop again around 2006-2007 people were buying there stuff in bulk to re-sell it. Then one of the son's/owners peeped game and started re-selling himself. In like 2008-2009 they started selling above retail depending on the hype around the release. Nike has been known around the city to cancel accounts for a few months if they don't like what your doing. From what I understand it has happened to SneakerVilla, Ubiq and some of the smaller stores as well.
 
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