Nike India closes more than one third of stores
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To cut losses, US sportswear maker Nike India has closed about 35 per cent of its stores.
This has left it with about 200 stores, say observers.
Nike’s accumulated losses were around US$81 million, according to data filed with the Registrar of Companies. Its sales over 2014-15 were about US$120 million for a loss of $15 million.
Its rivals have also accumulated losses – Adidas losing about $10 million and Reebok $328 million. However, German sportswear maker Puma bucked the trend with accumulated profit of $7 million.
Nike is believed to be also rethinking its strategy of sponsoring bats for top Indian cricketers. Nike’s largest partner in India is SSIPL (formerly Moja Shoes), which runs 80 per cent of the brand’s stores. Its second-largest partner is soft-drink mogul Ravi Jaipuria’s RJ Corp. Many of the closed Nike outlets have been converted into multi-brand stores by its partners.
Questions & Answers
Q.How many Nike stores have closed in India?
How many Nike stores have closed in India?
Nike India has closed approximately 35 per cent of its stores. This action has reduced their total number of outlets to about 200, as reported by observers.
Q.What were Nike's accumulated losses in India?
What were Nike's accumulated losses in India?
According to data filed with the Registrar of Companies, Nike's accumulated losses in India stood at around US$81 million. In 2014-15, its sales were US$120 million, resulting in a loss of $15 million.
Q.Which companies are Nike's main partners in India?
Which companies are Nike's main partners in India?
SSIPL, previously known as Moja Shoes, is Nike's largest partner in India, operating 80 per cent of its stores. RJ Corp, owned by soft-drink mogul Ravi Jaipuria, is the second-largest partner.
Q.How do Nike's losses compare to its main rivals in India?
How do Nike's losses compare to its main rivals in India?
Nike's accumulated losses were US$81 million, whereas Adidas lost about $10 million and Reebok accumulated $328 million in losses. Puma, however, recorded an accumulated profit of $7 million.
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