Store checks in New York included Nike's new Brooklyn location, two Foot Locker stores and streetwear retailer Snipes. Nike is overhauling its in-store presence, with approaches varying across retailers. Retail partners such as Foot Locker and Snipes showed the deepest markdowns, while Nike-owned stores offered a broader selection. A Stifel survey of over 100 stores found Nike's popularity declined from 97% to 87% of checks over four years, though Nike remained the most popular brand. Competitors New Balance and Adidas gained ground as retro Nike styles waned. Nike plans to cut promotions and implement phased "surgical" US price increases to offset a $1 billion tariff cost and rebuild wholesale relationships amid a 10% sales decline.
Nike is overhauling its in-store presence, and my visits to five retailers this back-to-school season suggest the approach isn't one size fits all. Its retail partners, like Foot Locker and Snipes, seem to have the deepest markdowns, while Nike's stores have a broader selection. That's based on my store checks in New York, including Nike's new location in Brooklyn, two Foot Locker stores, streetwear retailer Snipes, and Urban Outfitters.
A recent footwear survey by investment bank Stifel of over 100 stores found that Nike's popularity lost ground this back-to-school season, though it was still the most popular brand in stores. The stores referenced Nike as one of their most popular brands in 87% of the firm's checks, down from 97% during the back-to-school season four years ago. Competitors like New Balance and Adidas gained popularity, as Nike's retro styles like Dunks, Air Force 1, and Jordan 1 lost.
In January, CEO Elliott Hill told Fortune that Nike had become "too promotional." He said the company would cut back on markdowns to provide a more "elevated" experience beginning earlier this year. In June, the company said that it was planning "surgical" price hikes in the US, which would roll out in phases beginning the same month. The company is raising prices to offset an expected $1 billion cost increase from tariffs this year.
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