Listen Now: Nike’s Retail Plan
The sportswear company has announced that it plans to hit $50 billion in sales by the year 2020. And any retailers that won’t be able to help them with that goal will be told to hit the bench. Nike says about 40% of its sales come from what it calls differentiated” retailers. Stores that are inviting and presents its products in a sophisticated way. Examples given include Nordstrom and Foot Locker. Some of the stores that might not make it to next season could include Dicks Sporting Goods, Macy’s and Kohl’s that discount many of their items and trains shoppers to expect deals.
Nike is also hoping to expand its online sales through a deal with amazon, develop new categories to entice a different generation and increase sales to countries outside the U.S. Finally the company plans to introduce a membership deal. This will offer people exclusive products and the first shot at buying them once released. It’s a competitive field out there, sometimes you need a strong offense.
CBS News Radio national business journalist Brian Banmiller has spent more than 40 years in the news industry, covering business, politics and the economy on television, radio and in print. Currently, his “Banmiller on Business” reports are delivered to an audience of millions nationwide.