Nike Shuts Down All Stores in U.S. and Western Europe
Nike Shuts Down All Stores in U.S., Western Europe to Curb Virus
(Bloomberg) --
Nike Inc. is closing all retail stores in the U.S. and Western Europe to help slow the spread of the coronavirus.
The closures, which also include Canada, Australia and New Zealand, will take effect Monday and last through at least March 27. Nike will continue to pay employees during the shutdown, the company said.
“We are taking additional steps in other Nike-managed facilities, including the option to work from home, staggered work schedules, social distancing and additional safety and cleaning steps to help protect and support our teammates,” the company said in a statement.
Nike was one of the first major brands to address the virus’s affect on its business, announcing on Feb. 5 that it was closing half its stores in China and operating others at reduced hours. The company said Sunday that its Nike-owned stores in South Korea, Japan and most of China are currently open.
Nike joins a growing number of companies that are shuttering locations. Apple Inc. will close all its locations outside China until at least March 27. Peloton closed its public studios, while Urban Outfitters Inc., closed all its stores worldwide until at least March 28.
Nike has more than 350 U.S. stores between its Nike and Converse brands, according to company filings. It also has six major U.S. distribution centers -- five in Tennessee and one in Indiana.
Internationally, the company has more than 750 stores, with its European headquarters based in Amsterdam. It does not break them out by location.
While Nike has diversified its business in the past decade, it is still heavily reliant on the U.S. market and on in-person retail.
Nike did about 40% of its sales in the U.S. last year, by far its largest geographical segment. The next largest was Europe, Middle East and Africa, at 25%.
Nike digital, which includes sale on Nike apps and its website, accounted for 9% of its overall sales.
To contact the reporter on this story: Eben Novy-Williams in New York at enovywilliam@bloomberg.net
To contact the editors responsible for this story: Nick Turner at nturner7@bloomberg.net, James Ludden
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