Nike has announced that half of the company's stores in China have been closed in order to protect the health and safety of teammates working in the region.
CEO John Donahoe said that Nike’s focus was on keeping its employees safe while also maintaining its business momentum in other parts of the world.
The situation with the outbreak was not something that the company had anticipated when it set out its strategy for 2020 and with around 50% of its stores shut in China, there have been obvious implications on the amount of retail activity in the region.
Despite this, the company remains committed to protecting its team members by keeping the retail outlets closed for as long as necessary.
Other companies have been similarly affected by the outbreak which has been more contagious than had been anticipated. In Macao, for example, around 41 casinos, including those owned by MGM, have closed after the government requested a 15-day shutdown.
The government has now announced that the shutdown may be extended if the situation demands it.
Despite the current difficulties NIKE maintains that it is still looking to leverage long-term opportunities in China and the company remains optimistic about working in the area. At the same time, they are working hard to keep things moving forward in other countries worldwide.
At the time of writing, there have been over 20,000 cases of coronavirus confirmed with over 420 deaths. Numbers have been consistently increasing since the virus was first discovered in Wuhan, China on December 31st, 2019.