Converse’s Decision May Signify The End Of Some Retailers
Converse reportedly announced that it will end its business relationships with a number of independent retailers. The decision may impact U.K. stores the most.
Converse aims to modify its processes involving “distribution strategies” and accounts. There has been no clear explanation for the news yet, though.
Mark Parker, Nike CEO, said that there will be a change from “undifferentiated” retail channels to more direct-to-consumer measures. Nike is the shoe label’s parent company.
Parting Is Such Sweet Sorrow
In one message, courtesy of an anonymous source, the brand stated that one retailer’s business strategy is no longer a match with its strategy plans and needs. It also stated that the company discontinues conducting its business with the latter.
The business relationship between the two ended automatically on Dec. 31. In an official press statement, a spokesperson noted that the decision was for them to serve the customers better.
The brand also intends to continue its growth through the move. However, several independent retailers may be the most hurt in this shift.
“I spend about £25,000 a year with them, so that’s £50,000 of lost revenue,” one source said. “It could finish some retailers. Independents have supported the brand for years but they don’t care about us.”