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Adidas to axe independent accounts

Adidas has told independent retailers it will no longer work with them if they fail to meet a minimum sales requirement of £25,000.

The sports brand contacted independent retailers in November saying it would refuse to supply shoes and clothing to any sports shop which does not sell more than the required quota of their products and is removing credit facilities with immediate effect.

In a letter to retailers the company said it would lose smaller accounts as they were not “efficient”.  

It went on to say: “It is our commercial objective to secure a solid and sustainable business by developing mutually beneficial partnerships with long term trade partners. In line with this objective, we have undertaken an analysis of the efficiencies of our account base. This analysis has shown that it is not efficient for us to trade with accounts which have a turnover of less than £25,000 per annum.”

Nick Mavrides, owner of Ace Sports in Kentish Town in London told Drapers the loss of the Adidas account would have a “massive” effect on his business. He said: “I will have to try and diversify to keep me going but we are as good as dead in the water. It’s clear that they only want to deal with the big boys like Sports Direct.”

Readers' comments (4)

  • I hate to say this, but this is the future. While Adidas' business is run by a corporate guide dog, brands essentially don't want Independents and you will be seeing more of this in the coming months and years.

    Its always better to tell a brand to p*ss off before they do the same to you.

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  • I haven't been able to wear any of my Adidas since anelka's ugly mug in the West Brom kit.

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  • Robert Caulfield

    I used to work for a large brand and this was the route they started to take. Brands need exposure and distribution, Independents should be not be ignored in a business model.

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  • I already see Adidas product in shops and stores, markets etc. around the Greater Manchester area that could not possibly fit the Adidas model. Either these products are fake, possibly, or, more than likely, or, there is a growing black market out there that will grow even bigger.

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