Nike's Big Little Changes

Nike subtly realigns its orbit around boutique accounts as it works to get wholesale and brand heat back on track

First Name Basis: As announced in its recent earnings report, Nike has begun the task of repairing relationships among wholesale accounts at all levels. There are the more obvious moves like restoring allocation to Foot Locker and Shoe Show, but it’s also taking a different approach to how it launches more limited edition product.

On Nike’s December earnings call, CEO Elliott Hill specifically called out nike.com as a key issue, citing constant discounting as a major problem. “Entering the year, our digital platforms were delivering roughly a 50/50 split of full-price to promotional sales,” he said. “The level of markdowns not only impacts our brand but also disrupts the overall marketplace and the profitability of our partners.”

While the brand still views nike.com as a premium channel showcasing its “most complete assortments,” Hill said the brand pla…