Nike Could Face Global Sneaker Shortage As COVID-19 Ramps Up In Vietnam
Image via 2p2play / Shutterstock.com
Nike could soon be facing a shortage of sneakers as the pandemic worsens across the world, as per a report from S&P Global Market Intelligence.
This news comes as two of Nike’s suppliers in Vietnam – Chang Shin Vietnam Co and Pou Chen Corp – recently stopped production in three plants due to COVID-19 cases ramping up in the region.
Halting of production in Vietnam could pose a major concern for the global sneaker brand, considering that its fiscal report last year showed that 50% of its footwear was manufactured in Vietnam.
“The health and safety of our teammates, as well as that of our suppliers, remains our top priority. We continue to work with our suppliers to support their efforts in response to the dynamic and unprecedented nature of COVID-19,” a Nike spokesperson told CNBC.
Unfortunately, this disruption could hit Nike right in the middle of back-to-school season, where students often purchase sneakers for the new school year. While brands have likely stocked up for the fall, the shortage may prove challenging for retail stores during the holiday surge at the end of the year.
During a conference call with analysts last month, Nike CFO Matt Friend said the brand forecasted supply chain delays and increasing logistics costs throughout 2022.
If you’re planning on getting your hands on a particular Nike sneaker, it’ll be best to purchase it soon, as lots of items could go out of stock as the holidays near.
[via CNBC, cover image via 2p2play / Shutterstock.com]
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