Nike and Amazon are breaking up. Analysts say it's for Nike's own good.


Amazon and Nike are ending their two-year relationship.
A company executive confirmed the split on Wednesday, and told Bloomberg the decision stems from "Nike's focus on elevating consumer experiences through more direct, personal relationships." The executive noted the sports retail giant will still "continue to invest in partnerships with other retailers and platforms globally." Ouch.
This change abruptly ends the pilot program that the two companies launched in 2017, observes CNBC. According to Engadget, the partnership was originally intended to curb the sale of fake kicks. Rather ironically now, Endgadget speculates that one of the reason's behind Nike's decision could've been Amazon's inability to manage its billions of third-party sellers who sell counterfeit products.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
"The split comes amid a massive overhaul of Nike's retail strategy," notes the Los Angeles Times, and follows the recent hiring of former eBay CEO, John Donahoe as the company's next CEO.
As CNBC reports, analysts believe this is good for Nike. "Brands don't need Amazon," one analyst told CNBC, saying the breakup "strengthens our view that retailers [and] brands won't be displaced by Amazon."
But a former Amazon employee told the Times that this decision doesn't mean Nike's problems will disappear, and could even prove costlier for Nike than Amazon, as "there there will be enough of a selection that someone looking for Nike on Amazon will find something to buy.”
Whether those other options will stick around for long remains to be seen, as analysts are now speculating that Nike's departure from Amazon could prompt other brands to leave, reports CNBC.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Ramisa Rob is a web intern at The Week. She is also an investigative reporting fellow at Brian Ross Investigates, and has previously worked for the The Daily Star. A recent graduate of the University of Michigan, she is currently pursuing her Masters at NYU Tisch.
-
Epstein: A boon for Democrats?
Feature Democrats' push to release the Epstein files splits the GOP, sending the House into an early summer recess
-
Hulk Hogan
Feature The pro wrestler who turned heel in art and life
-
The 5 best movies based on TV shows
The Week Recommends From biblical parodies and space epics to an unappreciated auteur masterpiece, these movies breathed new life into preexisting TV series
-
Samsung to make Tesla chips in $16.5B deal
Speed Read Tesla has signed a deal to get its next-generation chips from Samsung
-
FCC greenlights $8B Paramount-Skydance merger
Speed Read The Federal Communications Commission will allow Paramount to merge with the Hollywood studio Skydance
-
Tesla reports plummeting profits
Speed Read The company may soon face more problems with the expiration of federal electric vehicle tax credits
-
Dollar faces historic slump as stocks hit new high
Speed Read While stocks have recovered post-Trump tariffs, the dollar has weakened more than 10% this year
-
Economists fear US inflation data less reliable
speed read The Labor Department is collecting less data for its consumer price index due to staffing shortages
-
Crypto firm Coinbase hacked, faces SEC scrutiny
Speed Read The Securities and Exchange Commission has also been investigating whether Coinbase misstated its user numbers in past disclosures
-
Starbucks baristas strike over dress code
speed read The new uniform 'puts the burden on baristas' to buy new clothes, said a Starbucks Workers United union delegate
-
Warren Buffet announces surprise retirement
speed read At the annual meeting of Berkshire Hathaway, the billionaire investor named Vice Chairman Greg Abel his replacement