This decision will take effect on May 31, 2022, announced Nike to dozens of Israeli retailers.
Israel has been shaken up by bad news that comes from American sportswear and apparel company Nike. The company is announcing that it will stop working with dozens of Israeli retailers to sell its products.
In a letter sent to the affected store owners in Israel on Sunday, Nike said that based on a comprehensive review performed by the company, as well as the changing marketplace, it had been decided that continuation of the business between the store owner and the company does no longer in line with the policies and goals of the company. It is also informed that the termination of this partnership will come into effect on May 31, 2002.
The letter added that the retailers are expected to anticipate this termination to continue their business without Nike products in their assortment successfully.
This decision is allegedly a part of Nike’s global plan, which aims to reduce the number of stores that work with Nike.
Nike encourages customers to purchase shoes, clothing, and other products directly on its official website or company-owned stores.
The company believes that by reducing the number of stores, it will earn much higher profits and be able to control its premium product experience by independently managing the entire sales process. It also ended its relationship with Amazon in 2019.
Many shops in Israel are concerned that the American brand’s decision will hit sales hard considering Nike’s standing as the most popular sports brand in the world and Israel, not to mention Israel’s condition that is still trying to recover from the global pandemic economically.
Other shop owners said that getting Nike products from independent suppliers would be more complex and more expensive if they buy from parallel imports.
Social media users welcomed the mega-brand measure to stop selling its products within the occupation state and even considered it another victory for the international Divestment Boycott Divestment and Sanctions (BDS) Campaign.
Previously, the ice cream company Ben & Jerry’s also withdrew from Israel. Earlier this year, its founders, Bennett Cohen and Jerry Greenfield, explained that they believe the company is on the right side of history.