The athletic footwear and apparel giant, which reported better-than-expected third-quarter revenue and sales despite supply chain problems in China, will test a Jordan-only store concept in North America, starting in fiscal 2023.
The format will leverage “a popular consumer experience that has been wildly successful in Greater China, the Philippines and Korea,” Nike CFO Matthew Friend said on the company’s earnings call. “Our approach is to first pilot these new concepts, iterate and perfect, and then move to scale,” Friend told analysts.
The company will also continue to invest in its Nike stores to grow the Jordan and women’s business, both being areas where it sees opportunity.
“Just to repeat, we believe in the North America marketplace in particular,” Friend said on the call. “There’s a real need around women’s, around Jordan and around some higher-end apparel where our mono-brand stores, particularly Nike Live concept, the 5,000- to 6,000sq ft concept can really play a role in neighbourhoods around North America. So we think that leads to a healthier marketplace that leads to even more accelerated growth.”
Nike has increasingly shifted its business away from wholesalers and to selling more goods directly to consumers via its own physical stores and website. The company has moved to end wholesale accounts with some retailers, such as Urban Outfitters and DSW. In other instances, it has reduced the amount of products made available to existing vendors, including Foot Locker.
