What the numbers say: Nike's revenue from direct-to-consumer (D2C) sales has risen consistently since 2009. Revenue from this channel jumped from $12.4B in 2020 to $16.4B in 2021. D2C sales stood at $18.7B in 2022. Relevance: The success of Nike's D2C operations led the firm to focus on this sales channel. Nike planned to link its D2C operations with a fleet of retail stores shaped by its "Nike Live" concept. The strategy involved ending nine wholesale partnerships in 2020. The footwear retailer proceeded to cancel its wholesale relationships with Macy's, DSW, and five other retailers in 2021. What's next: Nike reconsidered its shift away from wholesale as global consumption became pressured by inflation. The company now plans to restart its sales at Macy's and DSW. |
