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Nike Rehires Veteran Exec to Reignite Retail Relationships

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Nike reportedly tapped retired executive Tom Peddie to boost its retail partnerships.

Peddie worked for Nike for 30 years before retiring in 2020 and is returning to the sneaker giant to serve as vice president of marketplace partners, Bloomberg reported Monday (July 8), citing an internal Nike memo.

Nike is working to repair relations with brands like Foot Locker after removing its merchandise from retail spaces as it focused on its own stores and digital offerings, the report said.

“As we continue to focus and improve capabilities in our wholesale business, I am confident that Tom will bring both vision and bold leadership to accelerate the marketplace strategy,” Craig Williams, Nike’s president of geographies and marketplace, said in the memo, per the report.

Nike did not respond to PYMNTS’ request for comment.

Last month, Nike released earnings showing its ongoing shift from direct-to-consumer (D2C) to wholesale channels, with Nike Direct revenues down 8%, to $5.1 billion, while its wholesale revenues were up 5%, reaching $7.1 billion. Within Nike Direct, revenues at Nike Brand Digital were down 10% while those at Nike-owned stores fell 2%.

Nike President and CEO John Donahoe said during the company’s quarterly earnings call that a healthy marketplace includes a channel mix that is fueled by demand.

“We said we want to be where the consumer is, whether that’s digital or own door or wholesale, and so we’re embracing a more balanced approach to growing the whole marketplace,” Donahoe said.

He added that, as time goes by, Nike’s channel mix will be driven by the consumer and settle “in a consumer-friendly way.”

Ongoing financial pressure led Nike earlier this year to announce a 2% workforce reduction, which translated to the elimination of more than 1,500 jobs.

“The move comes at a time when consumers’ ongoing financial pressures make it harder for them to justify nonessential purchases and is part of the company’s broader restructuring plan that aims to cut costs in the face of weakening demand for its shoes,” PYMNTS wrote at the time.

“This is how we will reignite our growth,” Donahoe said in a memo viewed by CNBC in February.

“We are not currently performing at our best, and I ultimately hold myself and my leadership team accountable,” he added.

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Read More: Nike Rehires Veteran Exec to Reignite Retail Relationships

2024-07-09 16:49:57

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