Nike is giving the retail word a peek at what hyper-localization driven by customer data looks like in the physical brick-and-mortar store.
The new Nike Live concept store is inspired by and built as a hub for the athletic retailer's local NikePlus members. The first one, Nike by Melrose, will open its doors on July 12 in West Los Angeles, CA.
The company relaunched its NIKEPlus membership in November.
"And for the year, we've exceeded all of our membership targets with strong growth in new, active and buying members and improvement in engagement and in conversion," said chairman, president and CEO Mark Parker. "And we continue to explore the physical and digital intersection through our new NIKE app at retail, which is beginning to scale some multiple stores. Through Smart Retail, we can aggregate consumer buying patterns to better inform localized preferences and turn those into new growth opportunities."
This retail technology has enabled Nike to create its new concept shop. The small format, data-driven Nike by Melrose store's inventory assortment is influenced by what consumers are buying from surrounding zip codes, according to Parker.
It has pop-up vibes, and will operate like an experimental digital-meets-physical retail pilot, but the store isn't going anywhere anytime soon. The products and services that will be “tested” there are based on a deep understanding of the neighborhood.
"We see great potential on this approach, and you'll see a lot more of it across our key cities," said Parker.
Tokyo, for one, will see a new Nike Live store next spring.
On top of providing a selection of nike.com best-sellers and essential running, training and sportswear product, Nike by Melrose will offer city-specific styles — all of which is determined by Nike digital commerce data.
The retailer analyzed buying patterns, app usage and engagement of local NikePlus members to stock shelves. New apparel, footwear and accessories —all specific to LA’s needs regardless of Nike’s broader seasonal priorities — will fill the store on a bi-weekly basis (a Nike first) and sometimes exclusively.