The profit margin of the company is impacted by other factors which aren’t the supply chain. The other main restrain on the margin is the retailer cuts where the retailer will push for a lower wholesale price in order to keep lower prices for their customers. The only way Nike can bypass this is by having their own physical stores, however this would result in an increase in fixed overheads such as wages, rent and utilities which can make it counterproductive. The only way in which this would work is if the store is locating in a central location with a high number of footfall, the best example for the UK is London Oxford Circus, which gets domestic and international tourists entering the branch.