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.”