In a recent statement, Nike Inc. issued a warning about the negative impact of store closures worldwide on its retail and wholesale businesses in the fourth quarter. Despite this setback, the renowned sportswear giant is determined to enhance its e-commerce capabilities to meet the rising demand for online orders during the Covid-19 pandemic.
Nike has already taken steps to reopen stores in more than 15 countries, including Germany, France, Brazil, and the United States. However, the company foresees financial repercussions across all regions where its products are sold, as only a limited number of Nike-owned stores have resumed operations, ranging from 5% to 40%. On a positive note, all Nike-owned stores in China have reopened, and South Korea has seen over 95% of its stores return to business, although foot traffic in these areas remains below last year’s levels.
Despite the challenges faced by its physical stores, Nike has witnessed a surge in new customer acquisitions and a significant increase in demand on its digital platforms. These factors have helped partially offset the decline in brick-and-mortar stores and the wholesale channel.
In the aftermath of this announcement, Nike’s shares saw a slight decline in extended trading. The company’s ability to adapt to the evolving retail landscape and seize opportunities in the digital realm will play a crucial role in mitigating the impact of the ongoing global crisis on its business.
As Nike continues to navigate through these challenging times, it is important to stay abreast of developments in the retail industry. For more information on the future of retail and its implications for businesses, you can visit Retail Dive. Additionally, for insights and strategies regarding e-commerce and online retail, Ecommerce Nation provides valuable resources.