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Originally Posted by Crazy EBW
Originally Posted by johngotty
I honestly think they have to coexist.
FL Inc. has more retail stores under their umbrella than any other company. If Nike left them, who would they sell to? ****'s?
But on the flipside, I vaguely remember FL doing "okay" in my region when the fallout occurred. I mean there's only so many crummy Reeboks you can pawn off on the public.
What if Nike said screw it and just opened retail stores everywhere for themselves? What would Footlocker buy/sell then? Nike would be even more dominant than they are now if they had a massive global set of retail stores at malls, I'm not just talking Niketowns and factory stores. It would be automatic checkmate for Ftl, fnl, etc.
while it would be hard for ftl to replace the business that nike represents in their stores, it would be just as difficult (maybe harder?) for nike to justify the investment $$$ it would cost for rent, logistics (shipping & transportation to all of these new stores), personnel & product/profit risk it would take to run the amount of stores to make up for the business that ftl represents to them, even if they also increased the amount of business to other distributors. it could end up being really expensive...as ayipapa & gotty alluded to, though nike does have "hand" in the relationship, they do need each other