AlbertC
Superstar
Nike's new retail strategy for the upcoming period:
Nike plans up to 200 small-format stores, despite 38% revenue drop
June 26, 2020
Dive Brief:
www.retaildive.com
Nike plans up to 200 small-format stores, despite 38% revenue drop
June 26, 2020
Dive Brief:
- Nike revenue declined 38% in the fourth quarter, falling to $6.3 billion, according to a company press release. The retailer swung to a loss of $790 million, from income of $989 million the year before. That represented a 180% decline.
- While revenues in Greater China were only down 3%, North America was down 46% to $2.2 billion. As stores reopen, revenues are expected to improve and for fiscal year 2021, the company expects revenue to be flat to up, CFO Matt Friend said on a conference call with analysts.
- In the wake of strong digital growth in the quarter (75%), the retailer announced a new phase of its consumer direct strategy, with three key areas of acceleration: the creation of a "marketplace of the future," the realignment of product categories for a new consumer construct and further investment in digital.
- In connection with its consumer direct offense, the retailer is planning to open between 150 and 200 new smaller footprint stores in North America, Europe, the Middle East and Africa, in the image of the Nike Live concept it's been testing for a few years now. Those stores will be opened in the next couple of years, according to executives. The retailer tested the concept in Melrose initially, but has expanded it to several more locations, and plans to shift two stores in New York to the Nike Live model.
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Nike plans up to 200 small-format stores, despite 38% revenue drop
The retailer swung to a $790 million loss in Q4, but executives remained focused on the future, announcing a new phase of its consumer direct strategy.