Overview
- Nike disclosed Tuesday that it will end online sales through thousands of third‑party storefronts starting in January 2027 and move most digital traffic to Nike flagships on Tmall, JD.com, Douyin and its own website and app.
- The change asks most of Nike’s 16 China store partners to stop selling Nike products online and shift their focus to in‑store retail, a step that the company says will cut marketplace fragmentation and excessive discounting.
- Major distributors such as Topsports and Pou Sheng said they received termination notices and warned of near‑term revenue pressure, and both companies’ shares fell after the announcement.
- Analysts are divided: some call the move necessary to regain full‑price sales and brand clarity, while others warn it could cost market share as happened after Nike’s earlier North America wholesale pullback.
- Nike also pledged more investment in physical stores and local product creation, naming a VP for Greater China product development and planning localized collections for the holiday season as part of a multi‑year recovery plan tied to correcting a steep sales decline in the region.