(Alliance News) - Sports Direct on Monday called for a review of the sportswear market in the UK and Europe, attacking brands like Nike and Adidas for restricting products from retailers.
The FTSE 250-listed firm noted a Sunday Times piece published on Sunday which said that Nike has informed independent retailers that access to its products will end in two years. The newspaper added that peer Adidas may yet follow suit.
Sports Direct said: "The sports industry has long been dominated by the 'must-have' brands such as Adidas. These 'must have' brands hold an extremely strong bargaining position vis-a-vis the retailers within their supply networks and use their market power to implement market wide practices aimed at controlling the supply and, ultimately, the pricing of their products."
Mike Ashley's firm said big brands like Adidas have restricted the range of products available to retailers and have withdrawn or refused to supply of some lines. The company said it has historically found itself at a disadvantage due to these measures, and cited the decision by Adidas to withdraw the supply of Chelsea Football Club replica shirts in 2013.
Sports Direct added: "Sports Direct believes that the industry as a whole would benefit from a wide market review by the appropriate authorities in both the UK and Europe.
"Sports Direct has consistently aimed to provide the widest range of products at attractive prices and will continue to work constructively with all its suppliers to enhance its product offering for the benefit of consumers."
Shares in the company closed 4.0% higher at 309.80 pence in London shortly before market close on Monday.
By Eric Cunha; ericcunha@alliancenews.com
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