Clothing & Shoes

Sports Direct demands Adidas and Nike dominance probe

Sports Direct has called for an investigation into the sportswear industry, over concerns of the dominance of Adidas and Nike.

The sportswear brand owned by Mike Ashley said the “must have” brands hold a bargaining position which allows them to “control the price of their products and the price of its products”.

Sports Direct issued a statement after reports that Nike revealed it would stop supplying its products to independent retailers within two years because their sales methods are “no longer aligned” with its distribution strategy.

The retailer added it believes“ the industry as a whole would benefit from a wide market review by the appropriate authorities in both the UK and Europe.”

It said they have “consistently aimed to provide the widest range of products at attractive prices and will continue to work constructively with all of its suppliers to enhance its products offering the benefit of consumers”.

The retailer also pointed to the fact that in 2013, Adidas withdrew supplies of key products such as replica Chelsea shirts from all Sports Direct stores with “no apparent justification.”

A spokesperson from Nike said: “Nike continually evaluates the marketplace and competitive landscape to understand how we can best serve consumers. As part of this, from time to time we do make adjustments to our sales channels, in order to optimize distribution.”

A spokesperson from Adidas said: “The consumer is at the heart of our strategy and everything we do has the objective in mind to even better serve our consumers. In an increasingly digital marketplace the consumer decides where to go for information and where to purchase. We want to enable seamless consumer journeys. A strong partnership with retail partners is important to reach this objective.”

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