Nike, like many different retailers, relies on a team of merchants to stock its stores based on customers’ tastes. nevertheless currently, the company can be experimenting with analyzing online buying patterns along with Nike app data to identify where which might be beneficial to open fresh store locations, along with which items are most likely to sell there.
On Thursday, Nike opened Nike by Melrose, a 4,557-square-foot store located in Los Angeles which’s the first of its stores to be merchandised along with designed based on Nike’s digital commerce data. which plans to open similar stores from the future.
“We’re borrowing coming from the digital to do from the physical,” Michael Martin, vice president of digital products for Nike, told BuzzFeed News. “Here in Nike by Melrose along with Nike Live, we’re going to be refreshing for which local interest on a two-week basis, along with we’re going to be replicating which same thing in digital.”
The company decided to open the fresh store on Melrose Avenue based on Nike members’ activity tracked through the Nike app, Nike Training app, Nike+ Run Club, along with Nike buying patterns in its existing stores. Martin said which 50% of the apparel along with 25% of the footwear from the store are based on Nike commerce data, along with they will rotate based on shopping patterns.
The store can be filled with Nike essentials like socks, sweatpants, along with running shorts. nevertheless which will also include products which Nike’s app along with e-commerce data have identified as big hits from the area. For example, the store will be stocked with Nike Classic Cortez shoes because the company’s data showed which 1 out of every 50 purchases of the sneaker were made from the nearby Hollywood area.
“We knew which was favorite, nevertheless its definitely unique to This specific market,” said Martin.
Nike by Melrose can be also outfitted with fresh services, including pickups which allow shoppers to buy a product online along with pick which up in a locker at the store.
The company will also send push notifications to Nike app users with specially tailored offers when they walk by the store. along with when Nike app members walk into the store, the app will shift into a Nike App at Retail mode, which allows users to scan items from the store for inventory details, request certain items to be brought out for them to try from the store, along with reserve products coming from the app. Nike app users will also soon be able to instantly check out with the app from the store.
Martin said the company can be testing along with learning coming from the store on Melrose Avenue to determine which features which will expand to its fresh York along with Shanghai flagship stores. The company can be scheduled to open another Nike Live store fueled by commerce data in Tokyo from the spring.
The store comes as Nike overhauls its US business after sales in North America waned in 2017, while sales in Asia have been growing. Nike reported a 2% loss in revenues in North America, falling to $14.8 billion last year. The company’s sales in China grew by 18%, reaching $5.1 billion from the same time. Still, the company reported an overall 4% increase in revenues last year, reaching $36.3 billion.
“Our fresh innovation can be winning with consumers, driving significant momentum in our international geographies, along having a return to growth in North America,” Nike CEO Mark Parker said in a statement. “Fueled by a complete digital transformation of our company end-to-end, This specific year set the foundation for Nike’s next wave of long-term, sustainable growth along with profitability.”
Simeon Siegel, an analyst with Nomura Securities who follows Nike, told BuzzFeed News which because of Nike’s size along with scale, which “has the luxury of, along with willingness, to spend to grow.”
“This specific manifests in their ability to outspend the competition on R&D to develop the latest technology for their products,” he said. “[One way] they are looking to innovate can be to shift to owning the customer to a much greater degree. This specific can be seen through their stated shift to more direct sales through their own stores along with websites vs. third-party retailers along with control of customer data. By utilizing the insights they learn, they can improve the customer experience along with ultimately their sales.”