Nike faces store strike in Turkey on top of online sales pause

Nike Inc. is running into trouble in Turkey, where it has the most stores in Europe, adding to the sportswear company’s headaches.  

Unionized retail employees at nine Turkish Nike stores are set to strike on Friday after the parties failed to reach terms on a new collective bargaining agreement. This comes amid a broader e-commerce shutdown, triggered in part by higher customs taxes, that’s lasted more than half a year. 

Turkey is an important part of the operating region that includes Europe, the Middle East and Africa — an area where Nike has posted significant sales declines in recent quarters. Nike has 60 stores in Turkey, a handful more than the total in France and about 10 more than in the UK. 

On a global level, the company is looking to rebound after a year of layoffs and leadership changes. New Chief Executive Officer Elliott Hill is prioritizing a return to sports and repairing relationships with its retail partners. Nike is scheduled to report earnings on Thursday after the close of trading in New York. 

The nine Turkish company-owned shops that are poised to strike employ about 250 workers. The other franchised stores in the country aren’t covered by the collective bargaining agreement.

Nike’s unionized store workers are concerned about the company’s future in Turkey, according to Metin Guney, general secretary of Koop-Is, the local union. The retailer has recently closed two locations on top of the lengthy e-commerce pause.

Workers first priority is job security, Guney said, and they’re also looking for a better compensation package in the case of layoffs and more store closures. Other points of contention include bonuses, seniority premiums, food allowances and disciplinary committees.

Representatives from UNI Global Union, the international labor federation that includes Koop-Is, sent a letter to Nike’s headquarters after talks with the company’s Turkish subsidiary failed to result in a new deal. 

In a statement to Bloomberg, Nike said it has engaged with the union and confirmed the two sides haven’t reached a collective bargaining agreement. The company said it “remains available and committed to working towards an agreement with the Union’s representatives.”

Turkey President Tayyip Erdogan has tightened the nation’s customs regulations as Turkish consumers grapple with the effects of high inflation. Living costs have been hit by a currency that has steadily weakened, while a global trade war sparked by US President Donald Trump’s tariff policies has added more uncertainty for Nike and other multinational corporations doing business in Turkey.

Last year, Nike paused its online sales in the country as Turkey began levying customs taxes on e-commerce purchases originating from other countries valued at 30 euros (about $33) or more. Previously, shipments of 150 euros and below had been exempt.  

Seven months after the change, Nike’s Turkish website still says orders have been suspended “for the time being” because the company can’t ensure that “orders will arrive smoothly and on time.” 

Nike, which doesn’t have warehouses in Turkey, had previously shipped individual orders from elsewhere in Europe. The company’s manufacturing directory says it makes apparel and equipment in the country, but not footwear. 

While Turkish shoppers can’t order directly from the company, some chain stores have licenses to sell Nike products online, according to Berke Icten, chairman of the Footwear Industrialists Association of Turkey. Rival companies produce footwear in Turkey, he said.