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RETAILERS SEE TWO SIDES TO NIKE'S SUCCESS

     Nike's continually growing market dominance has incited
concern among retailers as to "how much Nike is too much,"
according to SPORTING GOODS BUSINESS.  In some stores, Nike takes
up 60% of footwear shelf space, and a "feeling of entrapment" has
emerged among retailers who feel they have less control over what
to stock, but are too dependent on Nike's revenue to do anything
about it.  Retailers fear that if and when Nike "falls out of
faith" with consumers, the results will be "disastrous."  Most
admit such a fall is unlikely with rumors persisting of Nike
acquiring a large sporting goods brand and possibly even a retail
chain. Retailers also complain about Nike's control over product
allocation and marketing support.  While admitting it would be
"suicide" to cut Nike shipments, retailers could use stronger
competition from other brands to help their cause (Leigh
Gallagher, SPORTING GOODS BUSINESS, 4/96 issue).

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