Nike "swooshes" out of Sears

US sporting goods giant, Nike, is removing its brand from Sears department stores from October 2005.Analysts believe that this may be a move on Nike's part to protect its high-end brand image from Kmart, as it starts selling well-known Sears brands. Last year discount retailer Kmart acquired Sears for $12.3 billion (GBP 6.5 billion) creating the third-largest US retailer, Sears Holding Corp.

Nike was not available for comment on the Sears-Kmart deal.Sears continues to carry other well-known brand name athletics shoes including New Balance, Reebok, Adidas and Skechers. Sears indicated that it planned to "continue talking to Nike".

Sears spokeswoman Lee Antonio told Fibre2Fashion: "We were surprised and although we were disappointed, we respect their brand decision." Nike could not be reached for immediate comment and there has been no confirmation that the company would also pull its brand from the shelves of other mid-priced retail chains like Kohl's Corp.

According to research, a recent fashion shift has taken place in which premium sneakers prompted a spending spree on athletic footwear. This signified a profit gain for major shoe companies.NPD Group data showed that demand for athletic shoes priced over $100 per pair rose 18 per cent in the US to approximately $600 million last year.

Nike's market share in the US athletic shoe market is more than twice that of its biggest rivals, Reebok International Ltd. And Adidas-Salomon. Sales for higher-priced shoes at Nike rose 10 per cent during the last quarter, resulting in a profit of $273.4 million.