Nike's Third Restructuring and Four More Retail Horror Stories

Nike has launched its third restructuring program since fiscal 2024 — and BNP Paribas says the fix could take years. The athletics giant's new plan, Pace, arrived at the start of this month and consolidates geographies, builds a more flexible supply chain, opens a campus in India, and shifts resources toward product innovation and brand storytelling. The retailer admits it has "significant work ahead," particularly in sportswear, Jordan Brand and China.

Why is Nike's turnaround dragging?

Two years ago, Elliott Hill stepped in as CEO with a mandate to correct a DTC pivot that had gone too far. BNP Paribas said this month that around that time, leadership told them the Win Now strategy would be complete by the end of 2025. That deadline slipped to the end of 2026 — and Nike offered no timeline at all when it unveiled Pace.

BNP Paribas senior analyst Laurent Vasilescu put it bluntly: "rightsizing of the business may last for several years to come." Nike's turnaround is now a multi-year project, not a quarterly one.

What did Walmart say about dynamic pricing?

Late last month, Walmart CEO John Furner tried to shut down fears that digital shelf labels would enable personalized pricing. He said data shared with the retailer's AI shopping agent, Sparky, won't be used to change prices or hide cheaper goods.

Furner was unequivocal: Walmart does not set "different prices based on who you are or the time of day, and we won't. Your income, shopping history, urgency or what we think you could pay won't change the price. And whether you're buying groceries or electronics on a hot afternoon or in a sudden rush for an item, it's never a reason to charge you more."

Consumer advocacy group Groundwork Collaborative fired back, pointing to a patent Walmart was granted in 2023 for remotely controlled electronic shelf labels. The patent describes labels and prices changing based on what the system knows about a shopper's cart through scan-and-go tech. That patent's adjusted expiration date is April 2039.

About a week later, Walmart responded again. "A patent isn't a plan," a spokesperson said, adding the company "does not use, and will not use, digital shelf labels to change prices based on what's in a shopper's cart, who they are or the time of day. The Patent has issued, but we will not use it or renew it."

How did Bed Bath & Beyond's deal spree collapse?

At the start of the year, Bed Bath & Beyond — now Neighborhood Intelligence — laid out a turnaround built on three pillars: omnichannel retail, home services and home ownership. Acquisitions were the engine. The company bought The Container Store and The Brand House Collective (formerly Kirkland's), and struck deals to go beyond traditional retail.

In April, it announced plans to acquire F9 Brands, owner of Cabinets To Go and Lumber Liquidators, with F9 CEO Jason Delves tapped to lead the "Beyond Home Services" pillar. In June, it moved to buy real estate platform Fathom Holdings to back the home ownership pillar. Both deals are now dead, and the company says it won't pursue other acquisitions, pivoting to organic growth.

What happened in the Lululemon board fight?

Founder Chip Wilson spent the year pushing to reshape Lululemon's board. In December, he nominated former On Holding co-CEO Marc Maurer, former ESPN CMO Laura Gentile and former Activision CEO Eric Hirshberg, calling them "the change that is needed to redefine Lululemon and begin this company's next chapter of success."

The board shot back, calling Wilson's actions "the latest iteration of his long-standing personal grievances and desire to regain influence at Lululemon." The fight ended in a cooperation agreement: Maurer and Gentile joined the board. Last week, Lululemon added former chief product officer Tara Poseley too — a move Wilson supported.

How hard are gas prices hitting consumers?

The national average for a gallon of regular gasoline is down 4.6% month over month, but up nearly 40% year over year, according to AAA's tracker. Consumer confidence fell to a 12-year low last month.

Broader retail sales are "starting to crack," Navy Federal Credit Union Chief Economist Heather Long said in emailed comments. "As gas prices soared, consumers spent more at the pump but had to pullback elsewhere." Sporting goods and hobbies — historically resilient categories — are slowing too. "That may be an early canary in the consumer mind."

With retail's biggest quarter now ramping up, consumers are pickier about where their money goes — and the retailers that flubbed this year may not get a second chance in the next one.