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Adidas aims to fill the Nike gap at Foot Locker with expanded partnership

May 6, 2022

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Foot Locker made waves in February when the company said it would receive less Nike product going forward. The decision was based, in part, on Nike’s shift to a more DTC-focused strategy. However, Nike had also come to account for 75% of Foot Locker’s total purchases in 2020, which Foot Locker CEO Dick Johnson said was limiting choice for consumers.

Wedbush analyst Tom Nikic views the partnership between Adidas and Foot Locker as a “positive development for both companies, as it helps [Foot Locker] offset some of the lost volume from [Nike]’s decision to de-emphasize FL’s role in their ecosystem, while it may allow Adidas to gain greater inroads in the North American market (where they’ve long under-punched their weight, primarily due to an under-penetration at FL).”

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