Nike Still Sells Its Products in Israel
The Claim
Nike will end selling in Israeli shops.
News posted on
Emerging story
News websites and many influencers circulated news that the American company Nike has suspended its work in Israel. An article by the Middle East Monitor supported the Palestinian cause and framed Nike’s move as a “hammer blow” to Israel. Many social media users celebrated the move as a win for BDS.
However, the company’s decision was allegedly made in line with its global plan to reduce the number of stores it works with to instead focus on its website and company-owned stores. This allows the sports giant to increase profits by controlling its premium product experience itself. Nike’s latest measure, set to come into effect on May 31, 2022.
Misbar’s Analysis
Nike isn't boycotting Israel despite reports to the contrary. It actually stopped distributing to privately-owned small businesses and works exclusively with the Israeli Fox group and its own outlet.
The media storm was based on a letter from Nike to shoe stores in Israel announcing that it would stop selling its products to these retail outlets in May. The letter, first reported by the Israeli press Sunday, said that “the continuation of the business relationship between you and the company does no longer match the company’s policy and goals.”
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.
