Nike Inc. is facing dual challenges in Turkey, its largest European market, as unionized store employees prepare for a strike and the company continues to grapple with a prolonged online sales suspension.
Retail workers at nine Nike-owned stores in Turkey are set to strike on Friday, 21st March, following unsuccessful negotiations for a new collective bargaining agreement. This labour action coincides with an ongoing e-commerce disruption that has persisted for over six months, triggered by increased customs duties imposed by the Turkish government.
Turkey holds significant strategic importance for Nike within its Europe, Middle East, and Africa (EMEA) operating region, a sector that has experienced recent sales declines. With 60 stores, Nike’s Turkish presence surpasses its retail footprint in both France and the United Kingdom.
The impending strike involves approximately 250 employees who are demanding enhanced job security and improved compensation packages. Metin Guney, general secretary of the local union Koop-Is, in media reports, emphasised worker concerns regarding potential layoffs and further store closures. Union representatives have also escalated the matter to Nike’s global headquarters.
Nike has acknowledged the impasse in negotiations and reaffirmed its commitment to reaching an agreement with the union.
Simultaneously, Nike’s online sales in Turkey remain suspended due to new customs regulations that impose taxes on international e-commerce purchases exceeding 30 euros. This policy, implemented by the Turkish Government, has disrupted Nike’s previous order fulfillment model, which relied on shipping from European warehouses.
While Nike’s direct online sales are halted, Turkish consumers can still purchase Nike products through licensed retailers. These challenges in Turkey occur as Nike undergoes a broader corporate restructuring, focusing on strengthening its core sports business and rebuilding relationships with retail partners.
