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.
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.
-
Political cartoons for January 4Cartoons Sunday's political cartoons include a resolution to learn a new language, and new names in Hades and on battleships
-
The ultimate films of 2025 by genreThe Week Recommends From comedies to thrillers, documentaries to animations, 2025 featured some unforgettable film moments
-
Political cartoons for January 3Cartoons Saturday's political cartoons include citizen journalists, self-reflective AI, and Donald Trump's transparency
-
TikTok secures deal to remain in USSpeed Read ByteDance will form a US version of the popular video-sharing platform
-
Unemployment rate ticks up amid fall job lossesSpeed Read Data released by the Commerce Department indicates ‘one of the weakest American labor markets in years’
-
US mints final penny after 232-year runSpeed Read Production of the one-cent coin has ended
-
Warner Bros. explores sale amid Paramount bidsSpeed Read The media giant, home to HBO and DC Studios, has received interest from multiple buying parties
-
Gold tops $4K per ounce, signaling financial uneaseSpeed Read Investors are worried about President Donald Trump’s trade war
-
Electronic Arts to go private in record $55B dealspeed read The video game giant is behind ‘The Sims’ and ‘Madden NFL’
-
New York court tosses Trump's $500M fraud fineSpeed Read A divided appeals court threw out a hefty penalty against President Trump for fraudulently inflating his wealth
-
Trump said to seek government stake in IntelSpeed Read The president and Intel CEO Lip-Bu Tan reportedly discussed the proposal at a recent meeting
