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Nike Inc. started clearing up its stats sheet a week ago and the first time, the sneaker empire declined to report “future orders,” a crucial measure of wholesale demand from the galaxy of retailers who sell the famous kicks. Nike, No. 9 inside the B2B E-Commerce 300, says the metric doesn’t matter much anymore, because now it’s centered on working directly with consumers and cutting out the middleman.

Nike sells to retailers through a mixture of EDI and e-commerce. While Nike reported its slowest quarterly sales growth since 2010, its performance as being a retailer-instead of a wholesaler-was actually a relative highlight. Sales on Nike’s own online store were up 19% inside the recent quarter, while its retail locations notched a 5% gain in same-store sales. 28% of sales are direct this season, in comparison with 4% 5 years ago. CEO Mark Parker said the company is obsessed today with making shopping more personal. “Retailers who don’t embrace distinction is going to be put aside,” he warned on the conference call Tuesday.

Still, that wasn’t enough to impress investors-a minimum of, not yet. The overlooked beauty of bricks-and-mortar retail is how well retail chains lend themselves to what economists call price segmentation. Shoemakers like Nike can certainly target customers by sending the wholesale nike shoes off to the right sort of store (think: first-class vs. coach, iPhone X vs. iPhone 8, Banana Republic vs. Old Navy). In Nike’s case, it ships expensive, exclusive edition sneakers to high-end boutiques, routes its stock Jordans to chains like Foot Locker Retail Inc., and dumps its low-end product and off-key colorways such places as DSW Inc.

If done correctly, all of this socioeconomic slotting moves the maximum amount of merchandise as possible with minimal fuss, while not tarnishing the greater brand. And make no mistake: Nike does it correctly. On its face, the Swoosh is really a design shop supercharged by the kind of storytelling its TV commercials, billboards and magazine ads are famous for. But Nike’s real genius isn’t marketing, it’s merchandising: knowing what to ship where. For each and every sneaker sketching savant in Beaverton, Ore., there’s a mid-level manager using a giant spreadsheet, making sure “Momofuku” Dunks aren’t too readily available, ordering up cheap wholesale nike shoes free shipping for China, distributing its best-sellers to any or all the correct Di,ck’s Sporting Goods Inc. outlets and dumping a lot of Chuck Taylors at outlet malls.

Nike has become upsetting its own well-oiled applecart. In giving traditional retail the stiff arm, which Nike made official in June, the Oregon empire is tearing up that playbook and trying to make an end run around the fundamental economics of price segmentation. The strategy-a bold move, given the historical manufacturer-to-retail model being discarded-requires an abundance of swagger. But Nike’s numbers show that the bet appears to be working, primarily because Nike continues to be sharpening its digital game.

Sought-after sneakers now ship out via Nike’s own ecosystem of apps, including SNKRS, which it launched early last year. The heart of their lineup, meanwhile, sells on Nike.com and then in their own big box stores. With regards to cheaper, less-popular kicks, they quietly trickle to the company’s “factory” stores (read: outlet) and onto Amazon.com. Nike even includes a studio in Ny that makes cheap nike shoes in about an hour.

To put it briefly, the company is deemphasizing its ready-made network wemjjs retailers to generate an even more precise targeting mechanism. Tuesday Parker said the end goal is to get ahead of the consumer and present “the most personal, digitally connected experiences” in the industry. “While altering your approach is never easy, Nike has proven before that whenever perform, it’s always ignited the following phase of growth for your company,” he explained.

Theoretically, Nike can know virtually any customer better-and his or her willingness to cover-by making use of its own venues and platforms, particularly on its digital properties. The task is going to be building the mechanism to sort all the data, and in doing so, the shoppers. In real life, they sort themselves: The high-end boutique isn’t right near the cut-rate discount outlet. Inside the virtual world, it’s not so easy.

For your record, Under Armour Inc. is slightly ahead of Nike Inc., with 31% of its sales coming right from consumers; Adidas AG is slightly behind, with 23% of revenue from retail. At its current pace, Nike will soon be collecting one in three of its sales dollars right from consumers. Its challenge will likely be ensuring that none get too good a deal.