Avoiding the ‘Nike Problem’ of Excess Inventory

For independent retailers, it can sometimes be helpful to look at how big-name brands and companies are doing in the marketplace to better gauge where your brand stands. Don’t worry, independent retailers can’t really compare themselves to these big players, but they can use them as a litmus test of how the market is shifting and changing.

While athletic brands as a whole had over $35 billion in sales in 2016 alone, each brand’s share of this market becomes increasingly smaller. With many new trends, independent brands, and players in the space, traditional big-name brands just aren’t cutting it anymore.

Nike, one of the largest, most well-known brands in the world, has been having revenue issues that continue to plague the company. Recently, Goldman Sachs lowered its rating for Nike to "neutral" from "buy" due to excess inventory. With larger markets such as Asia just not performing as well, Nike is left with an abundance of goods — and not enough demand.