Image: Associated Press/ Richard Vogel.
Nike could run out of sneakers to sell by December 2021 according to a new report from S&P Global Market Intelligence.
The warning comes after two of Nike’s Vietnam suppliers Chang Shin Vietnam Co. and Pou Chen Corp., shut down as the Covid outbreak worsens in the country. Vietnam reported 5,537 new Covid-19 cases on July 22.
Vietnam accounts for 49% of U.S. seaborne imports linked to Nike, according to CNBC. Nike themselves said that contract factories in Vietnam produce 50% of total Nike footwear in 2020.
Steps brands have taken to combat the pandemic: How are your favorite brands combating Covid-19?
CNBC predicts that Nike would have already received stocks ahead of time and stored them in anticipation of the back-to-school season. This would keep a steady flow of products through to December 2021. Whether or not there will be enough shoes for the holiday season is anyone’s guess.