Nike CEO Mar Parker announced a major shift in the company’s retail business that will see the number of retailers Nike will work with pared down from 30,000 to just a mere 40.
The company did not release the full lineup of the 40 remaining retailers, it is known that Foot Locker and Nordstrom are amongst them. These two along with the other 38 partners will have to be willing to cultivate an unparalleled Nike space within the store and also provide specialized Nike trained employees.
During a presentation at the company’s annual Investor Day, Parker had this to say:
Where others see disruption to old models, we see opportunities for new growth. Whether that’s redefining our approach to the retail landscape or accelerating our international momentum, we’ve mobilized our priorities and we’re driving growth in new ways.”
Nike’s “Triple Double Strategy” focuses primarily on increasing speed of product creation, fabrication and delivery throughout all sectors of their business, from product to the experience of the mobile customer. At the heart the aforementioned strategy is the company’s renewed concentration on direct-to-consumer retail- simply put, the selling directly to its customers online or in its own brick-and-mortar locations.
Their “ consumer direct offense” emphasizes converting customers to “members”- people who have created accounts at either nike.com or one of its various apps. President of Nike’s direct-to-consumer business says the goal is tripling membership over the next five years.
More than a third of (product) offerings will be distinct to Nike.com and exclusive to members,” over the next five years – Heidi O’Neill, President, Nike direct to consumer
Offering 25% fewer styles via it’s “edit to amplify” will allow the company to focus on their more popular styles but will also allow Nike to speed up production.
Speaking on “edit to amplify” was Michael Spillane, President of Categories and Product:
We’re editing to amplify on the power products that consumers love. Editing out the noise amplifies our greatest strengths.”
Update: It must be clarified that Nike has indicated it will not be removing products from the shelves of thousands of retailers , rather it will be focusing investments and resources on 40 of them.
