Mike Ashley demands investigation as Sports Direct squeals foul play after moves from Adidas and Nike
Mike Ashley has demanded an investigation into Adidas and Nike.
The retailer claiming the two companies aren’t playing fair with him and Sports Direct.
Always nice to hear Mike Ashley squealing foul play.
The Newcastle United owner claims Adidas and Nike are abusing their dominance of the sportswear industry.
It is claimed that with the pair having the ‘must-have’ products that the customers want, it enables them to control both price and the supply of these ‘must-have’ products.
Adidas have now stopped Sports Direct stocking some of their products and Mike Ashley and SD have released a statement:
“Sports Direct believes that the industry as a whole would benefit from a wide market review by the appropriate authorities in both the UK and Europe.
“The sports industry has long been dominated by the must-have brands such as Adidas. These must have brands hold an extremely strong bargaining position vis-à-vis the retailers within their supply networks and use their market power to implement market wide practices aimed at controlling the supply and, ultimately, the pricing of their products.”
Adidas has blocked the company from selling some of its products, Sports Direct said in a statement.
It follows reports that Nike is ending supply deals with several retailers.
On the theme of complaining, only in September Sports Direct were also squealing because its big and booming rival JD Sports are set for a £90m takeover of Footasylum which would further reduce the access for Mike Ashley to the top brands.
As for Nike, The Sunday Times revealed that the US company has told a number of independent retailers that it is going to remove products from their stores, as Nike are wanting to push more people into purchasing directly from their website.
The Sunday Times quoted a source:
“All those companies that built a business on the back of Nike and Adidas are toast, there is no way they can replace that [soon to be missing business].”
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