According to a recent report, Nike is planing to open 200 small-format stores in spite of its 38% revenue drop, most of it due to the current COVID-19 pandemic.
The report goes on to state that despite Nike seeing a 38% decline in revenue during the fourth quarter, falling to $6.3 billion USD, the Swoosh announced a new phase of its consumer direct strategy. Nike will focus on three main areas, firstly to create a “marketplace of the future”. The other two steps include realigning the product categories for a new customer construct and to further investment in digital avenues.
Nike is planning to open between 150 and 200 new smaller footprint stores in North America, Europe, the Middle East, and Africa to align with its consumer direct offense. According to executives, these stores will open in the next couple of years.
“The global pandemic has made it clear that consumer behavior is changing rapidly, providing the opportunity for us to accelerate the pace of our transformation,” CEO John Donahoe said on the call. “Over the past few years, we have shifted from a legacy, wholesale distribution model to investment in a model that gives our consumers a more premium shopping experience.”
Nike has faced a loss of $790 USD million, from an income of $989 million USD the year before, which represents a 180% decline. Revenues in Greater China were only down 3%, while North America was down 46% to $2.2 billion USD.
For more details on the move, head here.