The Retreat from Wholesale: A Strategic Miscalculation#

Donahoe's Direct-to-Consumer Pivot: Promise and Peril#

When John Donahoe led NKE's aggressive pivot toward direct-to-consumer channels, the logic appeared sound: higher margins, direct consumer relationships, and liberation from the whims of wholesale partners. Under his tenure, the shift initially delivered increased direct sales and stronger brand control. Yet within years of lifting Covid-era lockdowns, the strategy began to falter. Direct-channel revenue stalled whilst on the retail floors of Foot Locker, Dick's Sporting Goods, and mall-anchored athletic specialists, an opportunity opened—one that nimble competitors rushed to exploit with devastating effectiveness.