Frasers Group considers mothballing Bob’s Stores chain after Nike severs ties

In a statement to the City late yesterday, Frasers said that sportswear giant Nike would cut ties with its 24-strong Bob’s Stores business from the end of March 2021.

The Mike Ashley-owned retailer said Nike’s decision “did not directly affect” the wider group and that Bob’s Stores is “one of several US-based retailers Nike has cut ties with in recent days”. 

Frasers added that the Bob’s Stores estate “does not include any of the new elevated stores which are core to the Frasers Group elevation strategy”. 

Nike’s decision is part of the brand’s wider global strategic shift to increase its ecommerce and direct-to-consumer sales. 

Under new chief executive John Donahoe, who took the reins in January, Nike has made no secret of its plans to cut ties with third-party retailers it feels can’t reach its targeted customer profile or treat its brand and products properly. 

In the UK, both Adidas and Nike have historically had stronger relationships with JD Sports than with Frasers Group. 

In October 2019, Sports Direct, as it was then, demanded the Competition & Markets Authority investigate Nike and Adidas, claiming both brands had “refused to supply key products at all with no apparent justification”. 

A Nike spokesperson said: “Nike continually evaluates the marketplace and competitive landscape to understand how we can best serve consumers. As part of this, from time to time we do make adjustments to our sales channels in order to optimise distribution.”