In nature and in business, those who do not or cannot adapt will in short order find themselves on the scrap heap of extinction.
Although Nike is far from that fate befalling them, there were things that were happening in the market that finally cause them to take notice and then action. Namely, the flatlining in sales of performance running sneakers and the decline in that of basketball sneakers, according to research from The NPD Group.
Matt Powell, the sports industry analyst with the NPD had this to say about Nike:
Nike missed the fashion shift away from performance basketball to retro. They still have not caught up.”
Nike said it will focus on the hottest-selling footwear, reduce the number of styles it offers and sell more directly to its customers online in part of a restructuring that also includes cutting approximately 1,400 jobs. The brand said the cuts represents approximately two percent of its 70,000 employees.