Consumers have become accustomed to quick deliveries due to the likes of Amazon and now Nike are working to offer a similar service, by connecting its complex network of stores, warehouses and technology.
The move is part of a wider “connected inventory” strategy, which the sportswear retailer announced at an annual meeting last week. Business Insider reported that John Donahoe, CEO of Nike, had discussed the company attempts to tie together its inventory in stores, warehouses and with retail partners.
The sportswear giant aim to deliver within two days using a more regional shipping approach, and while it has not revealed the specifics, “connected inventory” is being used as a way of describing how Nike can bring all of its sales channels together.
In the company’s most recent earnings announcement, Donahoe said that the company’s efforts were about giving the consumer “what they want, when they want it, how they want it”.
The “connect inventory” strategy will also provide Nike with more data and control over its stock levels and distribution.
Earlier this year, Nike reported an increase in revenues by 5% to $46.7bn for the full year to 2022, with Nike Brand up 5% and its Nike Direct surging 14% off the back of 18% growth in Nike Brand digital growth.
Donahoe said at the time: “Our competitive advantages, including our pipeline of innovative product and expanding digital leadership, prove that our strategy is working as we create value through our relentless drive to serve the future of sport.”
As a whole, the online sporting goods and outdoor sector in EMEA was worth €12.04bn in 2021, markedly up from €10.53bn seen in 2020 and continuing impressive growth that the sector has enjoyed since around the end of the credit crunch in 2008. It is further forecast to hit €13.18bn in 2022. Find out more about the Sports Goods Sector and Nike in the RetailX EMEA Sports Goods Sector Report 2022.
