Nike has announced its plans to terminate sales in Israel as of next year.
The sportswear giant said the measures, which will see it cease working with Israel altogether to market and sell its products, will come into effect on 31 May 2022.
The decision reflects Nike’s strategy of shifting sales of its products to company-owned stores and online. According to Nike, such measures can result in much higher profits and provides it with more control over its premium product experience. It’s worth noting that Nike has ended its relationship with e-commerce giant, Amazon, in 2019.
In a letter sent to local store owners on Sunday, Nike said: “Following a comprehensive review performed by the company and considering the changing marketplace, it has been decided that the continuation of the business relationship between you and the company does no longer match the company’s policy and goals.”
There was no mention of any political considerations, as in the case of Ben & Jerry’s, which announced cessation of sales in Yehuda and Shomron in 2022 because it was inconsistent with the company’s progressive values.
Stores in Israel expressed their resentment saying that Nike’s decision would harm their abilities to remain profitable.