The $139B sports apparel megabrand recently announced that it’s cutting loose some of its strategic partners.
The partners — which include retailers like Dillards, Belk, Boscov’s, and Fred Meyer — collectively represent ~1k physical stores.
Nike wants 50% of its sales to be digital
Experts say it’s a feasible goal. The company is already on pace to hit 30% by the end of 2021, 2 years earlier than originally planned.
Over the past quarter, Nike’s digital sales have surged by 75% — even as its overall revenues declined 38%. This has largely been aided by the company’s app presence:
- The Nike commerce app has had 8m+ downloads since February.
- The brand’s SNKRS app scored $1B last fiscal year.
- Nike-branded training apps have seen up to a 100% increase in usage during the quarantine.
Last year, Nike shunned Amazon…
Now, the company is shunning Zappos — all in an effort to regain control of its brand and inventory.
Shops like DICK’S Sporting Goods, Nordstrom, and Foot Locker — who are digital savvy and tend to be more coachable on product display and promotion — were able to make the cut.
According to the bankruptcy newsletter Petition, the trickle down could be devastating for mid-tier malls. They house many of the retailers Nike is leaving behind and are already in pain.
