Nike is focused on growing its brand within the next few years, in hopes to open 150-200 new stores, said executives in a recent earnings call. These stores will have a smaller footprint than their traditional settings, while adapting the “Nike Live” concept that the retailer has been testing out since 2018.
Nike Live stores feature a focus on mobile by providing innovative experiences and services that unite physical and digital retail. Nike transformed their app to offer the same capabilities, but in a brick-and-mortar setting. The retailer uses data patterns and consumer insights from their app to give flexibility and personalization to each customer walking in. The store integrates a mix of technology by using digital screens as sources of storytelling and allowing shoppers to use their Nike app to self-navigate and browse products recommended to them. Although the store’s focus is technology-based, it doesn’t replace human interaction, which is still a large part of the experience. Incorporating the app into Nike stores has given customers exactly what they want — a easy, quick shopping experience with assistance when desired.
Nike executives have seen first-hand how this mono-brand technique enhances the in-store experience for consumers.
“At the end of the day, we believe that Nike-owned physical and digital working hand-in-hand with our key partners online and offline, we can create one Nike marketplace that meets the demand of consumers now and in the future,” said John Donahoe, Chief Executive Officer.
The Nike Live concept started in Southern California and then expanded to other places such as Long Beach and Glendale. The brand will continue to test out this approach in New York within the first half of next year, and then move forward with the new stores. This will allow them to get an even better understanding of engagement and assortment.
“As we’ve continued to test the concept, we’ve been testing the assortment. We’ve been testing member engagement. We’re seeing that members engage more frequently is serving to help us retain members and so as John mentioned, this is why we see this as being a catalyst to digital growth, having local stores that members can engage with,” noted Matthew Friend, Chief Financial Officer.
Although Nike’s Q4 2020 results were lower than anticipated due to the current pandemic, executives remain optimistic for the future of the brand. As stores reopen, revenues are expected to improve significantly, with numbers likely flat or up in 2021.
Nike understands the importance of adapting an omnichannel model for their in-store concepts. Combining digital outlets into the physical experience will continue to strengthen the brand, and allow for an overall seamless shopping experience.
Source: Nike Fiscal 2020 Fourth Quarter Results, Nike Q4 Earnings Call Transcript, Nike Live – Design Retail Online
Photo Credit: Nike News
—
About NIKE, Inc.
NIKE, Inc., based near Beaverton, Oregon, is the world’s leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities. Converse, a wholly-owned NIKE, Inc. subsidiary brand, designs, markets and distributes athletic lifestyle footwear, apparel and accessories. For more information, NIKE, Inc.’s earnings releases and other financial information are available on the Internet at http://investors.nike.com. Individuals can also visit http://news.nike.com and follow @NIKE.
