We reported earlier on Nike and how the brand is unlocking the future of retail with experiential shopping at their latest flagship store in New York City. In 2018, Nike opened four flagship stores across the globe – reshaping their stores around the consumer.
“All the best retailers are moving toward experiential environments” said Heidi O’Neil, President of Nike Direct in an Archinect article. Nike Direct, is a division of Nike that focuses on ecommerce, consumer relations and digital Nike+ products.
What’s driving Nike’s experiential environments? The brand’s app.
Although Nike initially launched their app over two years ago, it wasn’t until recently that they really stepped up their game. Internet Retailer reported that Nike’s app accounted for almost 40% of online revenue in the company’s fourth quarter for their fiscal year ending on May 31, 2018.
Once a shopper downloads the Nike app they are enrolled as Nike+ members (it’s free), and they start receiving perks. Nike+ members are offered discounts and exclusive product offers, to name a few. NYC shoppers can also check out on their smartphones, request products to dressing rooms and schedule in-house stylist appointments. Nike has allowed for a responsive design both physically and digitally.
Bloomberg reports that Nike+ members spend three-times more at Nike.com than non-members; and members who had visited the NYC store later spent 30% more online than shoppers who didn’t have an in-store experience. Another example of the physical and digital convergence at work.
“Mobile is at the center of people’s everyday life, and when people come into the store, they come in with their digital device,” said Adam Sussman, Nike’s Chief Digital Officer to Bloomberg. “We want to create a seamless connection between the physical and digital experience.”
Ruling Retail through Data
To really get that convergence down right, the brand must continue to test, innovate and rely heavily on data. As a brand they are seeing the return because they made the investment in technology early on. Each time a new flagship store opens they take those lessons learned and apply them directly to the next store. In the case with their Nike by Melrose store in California (opened July, 12, 2018) – that store was focused locally to provide shoppers with popular items from the Los Angeles area. When launching their Nike NYC, House of Innovation, they made sure to replicate that same success. Aggregated Nike+ member data from its ecommerce site, mobile site and app helped curate popular NYC items to feature in-store at 650 5thAve. (opened November 15, 2018).
“We use that data to inform how we assort the stores because people like to know what’s trending and what people in the city are buying. It inspires confidence in their purchases,” said Sussman.
As Nike continues to learn from their customers and leverage the data, they plan to roll out more features to their flagship store. Their drive for innovation, testing and retail disruption doesn’t stop once those new store doors open – it’s only just the beginning.
Stay tuned to see what experiences Nike unveils in Paris, as they are slated to open a flagship store in the City of Lights next fall.