Nike Chief Executive Mark Parker said the U.S. retail landscape is “not in a steady state”

http://fortune.com/2017/03/21/nike-ceo-retail-landscape-unsteady/

Nike Chief Executive Mark Parker said the U.S. retail landscape is “not in a steady state” as consumers spend more online and make fewer visits to brick-and-mortar stores. That behavioral shift has resulted in hundreds of store closures and higher promotions, putting pressure on major retailers and apparel and footwear makers like Nike that depend on them for sales.

“The important thing to point out is that these changes are being driven by the consumer,” Parker told analysts during Nike’s (NKE, -2.23%) quarterly earnings presentation on Tuesday. “Consumer demand remains quite strong but expectations remain high in terms of product, the innovation, and the style. They want it fast, easy and [they want] personal service.”

Nike reported a slim 3% increase in sales in North America for the fiscal third quarter, results that include revenue booked for much of the key holiday shopping season. While the overall retail industry enjoyed a strong holiday season for 2016, online sales generated much of the growth. Many physical store retailers lamented that promotions were very high for the season—comments that Nike executives echoed on Tuesday.

Parker told analysts that the consumer “has decided digital isn’t just part of the shopping experience. Digital is the foundation of it.” He added consumers expect more from brands when it comes to personalized service, a faster pace of innovation, and a better in-store retail experience. Nike is aiming to address all of those elements: the company is trying to offer more services like personalized shopping, quickening the pace of innovation to get new product on store shelves faster, and also working with stronger retail partners like Foot Locker (FL, -0.72%) and Dick’s Sporting Goods (DKS, -1.36%) to better present Nike goods. Nike, like Adidas, is also taking more ownership of its own fate by focusing more attention on their own physical stores.

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he knows online sales are taking over..everything..

“the U.S. retail landscape is “not in a steady state” as consumers spend more online and make fewer visits to brick-and-mortar stores. That behavioral shift has resulted in hundreds of store closures and higher promotions, putting pressure on major retailers and apparel and footwear makers like Nike that depend on them for sales.”

i dont see this trend changing for a long time..if ever..

“Parker told analysts that the consumer “has decided digital isn’t just part of the shopping experience. Digital is the foundation of it.”

401

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~ by seeker401 on March 27, 2017.

10 Responses to “Nike Chief Executive Mark Parker said the U.S. retail landscape is “not in a steady state””

  1. Online buying means cashless society! SHOP Brick and Mortar!

    • mastercard, visa, american express
      i aint got nothin ‘gainst no credit cards
      but the cash is the best

  2. It may be like when Walmart showed up and everybody was upset downtown will disappear. In the part of the U.S. I live in, small towns have almost disappeared, mainly due to Walmart and all the plaza’s. People would go around saying, ‘stop shopping at Walmart to save the towns’, but it was ineffective. When it comes to economics, Walmart keeps the bills paid in the house. Prices in towns never lowered. Walmart makes life affordable and keeps the bills paid. They might compete the same way with online shopping.

    Walmart is already not as cheap as it used to be, and does not help cut household costs as effectively as it used to. We shop at Aldi and when we walk out of Aldi, our grocery bill is nearly half the amount as it would have been if we shopped at Walmart. Walmart is too expensive compared to the costs at Aldi. There used to be a “Bottom Dollar” that had even cheaper prices, but Aldi bought the company and closed its’ stores.

    • aldi is here in oz now to..

      • It’s owned by Trader Joe’s. Our store is getting a lot of organic produce lately and some of the goodies you get at Trader Joe’s.
        Prices are indeed much lower than most grocery stores, but not as
        big a selection, but I shop there too to save.

        Walmart has definitely gone up in price and quality has hit rock bottom. I almost expect them to leave the U.S. since they have really have no way to expand here anymore.

        One thing I WILL say. WOMEN are not going to like online shopping only – no way in hell is that going to fly!! just sayin…… 🙂

        • i hear ya lady!

        • I do not like online shopping either. I have a difficult time selecting items I do not touch and directly see. Also browsing is diminished. I like being able to shop and not know what is out there, then see it on the shelf for the first time. Yet in recent years, my shopping experience is pretty limited to food only. I do not buy new clothes that much… anyways; online shopping usually involves having to know the item ahead of time. There is some browsing online, but I find it to be not as great as brick and mortar browsing.

          In a cashless dystopia society, sadly choices may be falsely fabricated anyways to give the sense of choice, and we may be told what and how much to buy.

  3. Reblogged this on World Peace Forum.

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