Want to buy Nike products at your local running store? Soon you won't be able to.

This cant be true. That would be beyond stupid.

It's true. That's a massive, I mean massive cost savings. They're assuming brand loyalty will translate to Amazon sales.

dbsquirt21 wrote:

This cant be true. That would be beyond stupid.

I don't think it's that stupid. I had a great experience at my local Foot Locker when looking for new shoes. Told the salesperson that I ran and did about 60 miles per week. He immediately recommended the latest version of Nike Shox and explained how the shock effect would help both reduce impact and propel me forward. That was 300 miles ago. Best pair of running shoes I have ever owned.

Good. Nike shoes are over priced garbage anyway

When I need shoes I head to one of the 18 or so Nike Clearance Stores nationwide. Pegasus 34s for $48 in August. Gyakusou jackets for $36 last December. Flash Aeroloft vest for $35 last week. Various shorts and tights for $10 when you're lucky.

Not the Factory Stores, only the Clearance ones. The Factory stores are full of Darts, Downshifters, and the other stuff they try to push on the crowd at Kohl's & the like. Although I have gotten LunarTempos for $29 at the San Ysidro Factory Store.

Having said that, Nike has cut its support to local running retailers consistently since the mid-90s, when they started opening their own stores. Used to sponsor much more grass roots running - now focused on a few larger races (BACM) and the HS spike crowd with NXN. Which has opened the door to Hoka, Newton and so many others at the local level which didn't exist back then.

I wonder what percentage of sales and revenue come from specialty shops.

Luv2Run wrote:

I wonder what percentage of sales and revenue come from specialty shops.

Good question, but going to just 40 retailers there's going to be some big names no longer selling Nike products. This obviously isn't just about running shoes, it's apparel as well.

Here's Clare Dunfy's article. I like to try stuff on, this doesn't facilitate that. Ten years ago I could try on two or three flats at the each local running store. Now no more.

https://www.bizjournals.com/portland/news/2017/10/25/in-massive-retail-shakeup-nike-downsizing-from-30.html

Sara Palin wrote:

Here's Clare Dunfy's article.

Paywall, can anyone copy and paste the text?

dbsquirt21 wrote:

This cant be true. That would be beyond stupid.

Agreed. I wonder if this is targeting certain aspects of the business and not all. Removing the local running store contracts would essentially kill their track and field brand and a decent majority of their mid to high end running shoes (like the Pegasus or Vomero).

The guy in my local store said the same, they now only have cheap freefoot shoes etc.

Nike Inc. CEO Mark Parker on Wednesday announced a massive shakeup in the footwear giant's retail business, saying the company will shrink the number of retailers it works with from 30,000 globally to just 40.

The change comes as Nike (NYSE: NKE) prioritizes direct-to-consumer sales through its website, apps and Nike-branded retail stores, as well as the 40 select retail partners. Those partners — which include Foot Locker Inc. (NYSE: FL) and Nordstrom Inc. (NYSE: JWN) — will be those who are willing to create a unique, branded Nike space within the store and have specific Nike-trained employees to assist with sales.

The company did not release the full roster of the 40 select retail partners.

“Where others see disruption to old models, we see opportunities for new growth,” Parker said during a presentation at the company's annual Investor Day event at the company's world headquarters in Washington County. “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.”

Addressing more than 100 analysts and investors at Investor Day, Parker said over the next five years the company expects high single-digit revenue growth with earnings-per-share growth in the mid-teens. Despite those modest growth goals, Parker told CNBC that the company remains on track to reach its goal of $50 billion in sales, a target set at Nike's 2015 Investor Day, but not until 2022.

Parker also said that 50 percent of the growth will come from footwear innovations like FlyKnit and VaporMax, while digital revenue will grow from 15 percent to more than 30 percent of the company's sales. Another three-quarters of growth will come from sales outside the U.S.

Nike has recast its future around what it calls its “Triple Double Strategy,” which focuses largely on boosting the speed of product creation, manufacturing and delivery across all areas of the business, from product to mobile customer experience.

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At the core of that strategy is Nike's renewed focus on direct-to-consumer retail — in which it sells directly to its customers either online or in its own brick-and-mortar stores.

Referred to by Nike as its "consumer direct offense," the strategy leans heavily on converting Nike customers to "members" who have created accounts at Nike.com or on one of its apps. Already, Nike has more than 100 million members, who spend around three times more than guest customers on Nike.com. Heidi O'Neill, president of Nike's direct-to-consumer business, said the plan is to triple membership over the next five years.

“More than a third of (Nike product) offerings will be distinct to Nike.com and exclusive to members,” over the next five years, O’Neill said.

Elsewhere on the disruption front, Nike plans to put 25 percent fewer styles to market starting in January. This move, called “edit to amplify,” will allow the company to focus more on its most popular and successful styles, as well as speed-up production.

“We’re editing to amplify on the power products that consumers love,” said Michael Spillane, president of categories and product. “Editing out the noise amplifies our greatest strengths.”

These “great strengths” apparently include the Jordan brand, NikeAir and the VaporMax technology.

And through the company’s partnership with Flex, a $26 billion manufacturing company, Nike is bringing manufacturing closer to the crucial North American market. In doing so, the company hopes to soon take products from design to the retail shelf within six months — the industry average is around 18 months — with same-day service in select cities.

Investors and analysts Wednesday were hoping to regain confidence in the company that has struggled recently in the face of a challenged retail environment in the U.S. and increased competition from Adidas, all of which have contributed to declining sales growth and a stagnant share price.

At least initially, Nike’s efforts worked: the company’s stock price was up 1.5 percent to $54.93 per share midway through the day.

The List

Largest Footwear & Apparel Companies in the Portland Metro Area

Ranked by Number of employees in the Portland metro area

Rank Name Number of employees in the Portland metro area

1 Nike Inc. 12,000

2 adidas America Inc. 1,700

3 Columbia Sportswear Co. 1,579

View This List

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I love the Pegasus, I can't find anything to replace it.

I order them from Nike.com

So none of the local running stores will carry Nike shoes or clothing anymore? Currently I buy almost all my gear from our small store. Honestly if I can't get Nike Pegasus there, I have no reason to go and won't be buying anything else (clothes or nutrition) there because I don't need those things often.

Why are small stores not talking about this? It will be a huge shock to their system.

This doesn't mean they will only be sold in 40 stores. It means Nike is only dealing direct with 40 partners, who then distribute down the foodchain.

How dumb are you people? wrote:

This doesn't mean they will only be sold in 40 stores. It means Nike is only dealing direct with 40 partners, who then distribute down the foodchain.

Because that’s not how it works? You realize many of us are in the industry.

The Great Divide wrote:

Why are small stores not talking about this? It will be a huge shock to their system.

Probably because they weren't told ahead of time. This was about shareholders, not about stores that won't be selling your products in the future.

Store owner wrote:

How dumb are you people? wrote:

This doesn't mean they will only be sold in 40 stores. It means Nike is only dealing direct with 40 partners, who then distribute down the foodchain.

Because that’s not how it works? You realize many of us are in the industry.

Can you tell us how it works? Specifically, how does this make sense for Nike? If it makes sense for Nike, will it not make sense for everyone else soon enough too? Will you be a former store owner in the near future?

I haven't run in Nike shoes for years.