Between March and April, Nike was able to compensate for part of the sales lost by the closure of stores due to the Covid-19 epidemic by the increase in online sales.
The American equipment manufacturer Nike announced on Wednesday a major reorganization at the head of the company as well as job cuts, in order to accelerate its evolution towards online sales at a time when the pandemic has changed the habits of consumers.
The company did not specify the number of planned layoffs, only saying in a statement that it wanted to set aside 200 to 250 million dollars to cover the departure costs of the employees concerned. According to its latest annual report, Nike employs around 76,700 people worldwide and operates 1,152 stores.
Between March and April, when a large portion of these stores had to close their doors due to the spread of Covid-19, Nike was able to compensate for some of the sales lost in establishments by the increase in online sales.
The latter jumped 75% compared to the same period in 2019 and represented around a third of turnover.
“Extend our leadership position”
To capitalize on this momentum, the group has put in place a strategy aimed at providing customers wishing to buy sports shoes and clothing on the internet “an improved, uniform and seamless experience” both on the brand’s website and on the Internet. of its strategic partners.
The changes announced on Wednesday are intended “to transform Nike faster, accelerate our greatest growth opportunities and extend our leadership position,” Comma brand general manager John Donahoe said in the statement.
“This is the right time to take advantage of Nike’s strengths and promote a group of experienced and talented managers who can take the group’s next phase of growth”, he added.
These appointments are accompanied by an ordering of the company’s operations around the new strategy via an organization “more agile and with fewer levels”.
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