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Why Nike's Newest Store Represents The Future Of Its Brick-And-Mortar Strategy

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Why Nike's Newest Store Represents The Future Of Its Brick-And-Mortar Strategy

Nike Inc (NYSE: NKE) is slated to open its new store in Soho, New York, officially on November 11. It is a five-story, 55,000 square foot store.

Barclays’ Matthew McClintock maintains an Overweight rating on the company, with a price target of $65.

The New Store

McClintock mentioned that “the store incorporates many new features that create an immersive experience into various sports.”

For soccer, the store has 400 sq. ft. for boots and staffed with a soccer expert, while for running, there is an “immersive treadmill running experience” to help customers try out the technical and comfort aspects of their choice of shoes.

“In basketball, the floor's 23 foot ceilings cover a 700 sq. ft. playable basketball court that also creates an immersive virtual experience and is staffed by an expert in basketball,” the analyst explained.

Innovations

The company has also added other innovations, such as an Airforce One Nike ID segment that will rotate creations of local designers every two weeks.

McClintock believes the store represents “the next step in the physical brick and mortar channel towards experiential retailing, something that few traditional apparel/ footwear brands can match.”

On November 8, Nike signed a new “lifetime” deal with Real Madrid star, Christiano Ronaldo. Ronaldo is the third athlete to have signed such a deal with the company.

However, Nike is expected to continue to face challenges in the medium term, especially give the increasing competition in the United States.

Latest Ratings for NKE

DateFirmActionFromTo
Apr 2019ReinstatesBuy
Mar 2019MaintainsMarket PerformMarket Perform
Mar 2019MaintainsNeutralNeutral

View More Analyst Ratings for NKE
View the Latest Analyst Ratings

Posted-In: Barclays Matthew McClintockAnalyst Color Long Ideas Reiteration Analyst Ratings Trading Ideas Best of Benzinga

 

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