Nike’s athletic clothing is on display at the Dick Sports Store in Delhi City, California.
David Paul Morris | Bloomberg | Getty Images
First of all, the companies announced on Wednesday that Nike’s loyalty program will be linked to the Dick membership offer so that customers can purchase exclusive Nike shoes and clothing on the Dick website.
Over time, the partnership will be expanded to include physical activities in the Dick area. And the two hinted at another potential benefit: Allowing Nike customers to stop returns or take orders online at Dick stores.
For Nike, the move reinforces Sonicer’s giant commitment to Dick in the industry.
Like Nike with their peers Under armor And Adidas is pulling goods from wholesale channels, including shops and other shoe retailers. Sell a lot of goods directly to customers at a high price. This is an attempt to build a close relationship with consumers and understand exactly what products they want.
Nike does not disrupt sales with specialized wholesale partners such as Dick. Foot lock Or Nordstrom. According to a recent annual report, wholesale revenues accounted for 61 percent of Nike’s total sales in the fiscal year 2021, down 65 percent from the previous year. The rest of the transactions took place in Nike stores or on the website – representing the growing body of the sneaker maker.
But Nike is still playing against key retail partners.
“We have a very diverse customer base in Nike and we need to be able to serve that diverse team,” said Sarah Mensah, vice president and general manager of Nike’s North American Division. “We really believe it represents the future of the retail business … and that really means a partnership – to the next level.”
Dick, meanwhile, is stepping up its investment in its own brand. March It has launched its own men’s athletics line called VRST.. That has joined the biggest personal brand in terms of sales, a women’s brand called Kalia. Dick increased its sales by $ 1.3 billion by 2020, out of a total revenue of $ 9.58 billion.
But it still has a lot to do with the Nike brand, which it has been working on for half a century. According to Dick’s latest annual report, Nike will be the company’s largest supplier by 2020, accounting for 19 percent of all purchases.
“You’ve seen the most talked about brands coming out of some broadcasts, it doesn’t bring their products to life in a better way,” said Dick CEO Laurent Hobart. “But Nike and our other partners realize that you have to have a physical fingerprint.”
According to Hobart, the strap allows Dick to find not only sneakers but also many Nike’s favorite lifestyle shoes. The company hopes to make new products “drops” every month and make them the latest gear destination for consumers.
“This opens us up to a whole new level,” she said. “Dick has some of the best shoes on the market and will continue to drive that brand relevance … We are now partnering with Nike on this long road map.”
In him Recently opened in Rochester, New York, on the outskirts of Victor City, Dick gave Nike a big look at his product. That area, as well as another home sports shop in Knoxville, Tennessee, is where Dick plans to make the first Nike members in person.
Dick shares have grown by about 120% to date. Nike rose to 18%.