Independent retailers given strict sales requirements from Adidas and Nike

Sports wear brands Nike and Adidas appear to have tighten their sales regulations.

The sports wear companies told their UK and Irish-based independent retailers that unless they meet the minimum sales requirement of 25,000 pounds of apparel and footwear a year, the companies will stop supplying their goods.

Adidas sent its independent retailers a letter last November which stipulated the company would cancel smaller accounts if they were insufficient and did not sell the required quota of goods. According to Drapers, the letter also underlined that research carried out by Adidas found that is was “not efficient for [the company] to trade with accounts which have a turnover of less than 25,000 pounds per annum.”

Around 200 accounts with independent retailers throughout UK and Ireland are expected to close. In a group statement Adidas revealed that the decision was not easy to make however it was undertaken to “ensure [company] business is solid and sustainable, and operates in the most efficient way across the adidas group.” The statement also stipulated that despite the “new strategic policy changes,” the group will continue to supply a wide range of retailers, including a number of independent retailers as well.

A company spokesman for Nike stated that the company requires “its European retail partners, no matter the size of such partners, to meet an annual minimum order level in order to support the necessary operational costs associated with delivering the best product presentation and consumer experience at the point of sale.” He added that those terms have long been part of the companies commercial agreement and are normal for companies that supply branded products.

This news comes after a disagreement between Sports Direct and Adidas came to light after the sportswear brand stated it would not supply the British retailer Chelsea's new kit. Adidas revealed plans to discontinue the duplicate Chelsea's shirt from Sports Direct stores for the 2014-2015 in order to secure its position as a leading brand for premium sports apparel.