Gone With A Swoosh: Nike To Pull Products From Sears Shelves
Nike will no longer sell its merchandise to Sears, “partially as a result of Sears’
acquisition earlier this year by Kmart,” according to Suzanne Kapner of the N.Y.
POST. Nike Corporate Communications Manager Joani Komlos said, “As of October,
Nike will no longer be delivering any product to Sears.” Komlos declined to “elaborate
on the reason for the split, beyond saying that it was made in the course of a
normal business review and coincides with the expiration of a four-year contract
that Nike signed with Sears at the end of” ’99. A source indicated that one “cause
for concern ... is the possibility of the Swoosh ending up in Kmart stores.” Sears
spokesperson Lee Antonio said, “Although we’re surprised and disappointed, we
respect their position and plan to continue talking to Nike” (N.Y. POST, 5/4).
Sears noted that it will continue to carry other brand-name athletic shoes including
New Balance, Reebok, adidas and Skechers. REUTERS’ Kahn & Kaiser reports Nike
declined to say whether it would “pull its products from other mid-priced chains
such as Kohl’s Corp., prompting some analysts to question whether the move was
purely a strategic change or aimed solely at Sears.” Morningstar analyst Anthony
Chukumba said, “Maybe this is Nike saying, ‘I don’t trust [Sears Chair] 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” (REUTERS, 5/4).
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