Nike and adidas Close Stores in China Due to Coronavirus
The coronavirus continues to spread and can hardly be stopped. Not only do countries block their borders, but also the shops in the countries want to protect their customers. According to reports, major sporting goods manufacturers Nike and adidas are in fact among them.
Small and large shops have already started to do the same such as well-known shops like McDonalds, Starbucks, and Apple. The whole thing is said to be just a temporary measure. So, that means that the shops will not close permanently. While other small stores are reducing their business hours, Nike and adidas want to take harder action by closing half of their stores in China completely.
John Donahoe, who recently replaced Mark Parker as CEO at Nike, made the following statement: "First and foremost, our thoughts are with those affected. We continue to focus on the health and safety of our teammates and partners. Despite this difficult situation, Nike's long-term opportunity to continue to provide inspiration and innovation to consumers in Greater China remains exceptionally strong. “
It is clear that both brands will expect a great loss with the said closures. Last fiscal year, Nike had sales of USD 6.2 billion in China. This made China the third largest market for the Swoosh. Capri Holding reports a strong loss for the next quarter. Nike and adidas should expect a loss of approximately USD 100 million.
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