Nike has announced that it will cut about 1,400 jobs and work on best selling sneakers.
According to an article on Reuters, Nike has announced that it will cut about 1,400 jobs. The brand also announced that it will work on its best selling sneakers, lower the amount of styles it offers, and sell more shoes directly to customers online.
The brand will also make its online shopping apps available in more countries. Sales at department stores are declining and many brands are going bankrupt because customers are shopping more online than in stores. Plus, people are shopping more at brands like H&M, Zara, and Forever 21 more than any other stores.
Nike is just the latest brand to announced job cuts because of that. The brand, however, did not say whether it would be closing any stores. Many brands like Macy’s, Aeropostale, and Old Navy have already announced stores closings because of decline sales.
Earlier this year in March, Brand Finance announced that Nike, H&M, and Zara are the world’s top 3 most powerful apparel brands. Nike held its spot as the most valuable apparel brand in the world for 2017. H&M came in second and Zara came in third, taking the spot from Louis Vuitton.
While Nike still has a 50% share of the U.S. market, Adidas took the brand’s spot as the top selling sneakers in the United States last year. Nike’s shoes had been the best selling for over 10 years.
Cutting jobs, working on best selling sneakers, lowering the amount of styles offered, and selling more shoes directly to customers online will probably make sales and profits increase at the brand. Making its online shopping apps available in more countries will probably do that as well.
The company will announce sales and profits for the first quarter fiscal 2017 in about two weeks. The brand had 70,700 employees as of May 31st, 2016.
So, what do you think? Will sales and profits increase at Nike? Let me know in the comments below. Also, don’t forget have to subscribe to get new posts sent directly to your inbox and follow me on Facebook, Instagram, and Snapchat.
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