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.
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"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.
