- Robyn Turk |
Nike is expanding its business operations in South America through new strategic partnerships in Brazil, Argentina, Chile and Uruguay.
The sportswear brand is transitioning its current operations in the region to strategic distributor partnerships, which it believes will enable a more profitable, capital efficient and value accretive business model. Grupo Axo will acquire Nike’s operations in Argentina, Chile and Uruguay, while Grupo SBF S.A. will become the owner of substantially all of the brand's operations in Brazil.
Nike explained in a statement that it is firmly committed to serving consumers in these countries with the best possible product innovation, services and experiences.
“As Nike continues to successfully implement the consumer direct pffense we are dedicated to serving consumers more personally and investing against the company’s long-term growth opportunities,” said Elliott Hill, Nike's president of consumer and marketplace, in a statement.
“Nike manages successful distribution businesses around the world and expanding this model in the rest of South America will help drive sustainable, profitable growth. Our partners are committed to serving local consumers and elevating retail and digital experiences and share Nike’s values and commitment to employees.”
Photo: Nike newsroom