Nike Potentially Running Out Of Sneakers With COVID-19 Pandemic Worsening

Sportswear giant Nike could be gearing up for sneaker shortage with the Covid-19 pandemic worsening.

S&P Global Market Intelligence released a report citing the potential large scale setback Nike could face with their shoes manufactured in Vietnam which accounts for 50% of their footwear offerings.

Nike’s suppliers in Vietnam, Chang Shin Vietnam Co. and Pou Chen Corp were forced to halt production following the rapid break out of Coronavirus in the East Asian nation.

The scale of the disruption could be massive with footwear-led imports from Vietnam accounting for 82% of the brand’s shipments in the last 12 months.

Nike spokesperson in a statement to CNBC said: “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,”.

“As we continue to navigate these circumstances, we expect our suppliers to prioritize the health and livelihoods of their employees and continue to comply with legal requirements and the Nike Code of Conduct on the provision of wages, benefits and severance. We are confident in Nike’s ability to navigate these near-term dynamics and we remain prudent in our planning.”

Nike’s supply chain problems, comes right as the retail industry moves into the all important back-to-school season with Vietnam’s Covid-19 situation also hurting fellow sneaker brands like Puma and Saucony.