New Test Shows Nike Dominating Foot Locker And Finish Line In Delivery Times

Tests indicate that Nike Inc NKE leads the industry in terms of execution capabilities. Credit Suisse’s Christian Bus maintained an Outperform rating for the company, with a price target of $68.

Ecommerce currently represents 16.7 percent of industry sales, and could reach 37.5 percent by 2030, analyst Christian Bus said. He added that brick-and-mortar, which currently accounts for 83.3 percent of industry sales, could decline to 62.5 percent by 2030.

“We see opportunity for traditional brands like Nike that are capable of converting their messaging and sales channels away from mass marketing into the consumer-first digital realm,” Bus wrote.

Results From Tests

Credit Suisse conducted proprietary tests of processing and delivery times for orders across the ecommerce sites of Nike, Foot Locker, Inc. FL and Finish Line Inc FINL. The tests “give us greater conviction that Nike will be successful in taking share as growth priorities shift to direct to consumer operations,” the analyst commented.

The tests revealed that Nike had the industry's best execution capabilities, with the ecommerce metrics of Foot Locker and Finish Line lagged significantly, “leaving us cautious on their ability to remain competitive,” Bus added.

Mobile Ecommerce

Nike has launched its new Nike+ mobile application, which should further allow the company to “craft their messaging and utilize their connected platform capabilities.” There are currently 8 apps, and “the investment behind a more streamlined platform for fitness tracking, personalized training, and exclusive new product” is likely to boost Nike's online penetration, the Credit Suisse report mentioned.