Assistant Editor, IndianRetailer.com & Retailer Media Oct 03, 2019 /
Nike, the world’s largest sportswear maker, has slashed the number of stores in India to around 150. The US-headquartered company is further planning to bring down these retail outlets to around 100.
The brand has also withdrawn from most of its franchise agreements in India. It has decided to go along with only one strategic partner New Delhi-based SSIPL (Sports Station), which will operate its offline stores.
In India, Nike will be directly focusing on online sales, mainly through Flipkart Group and Amazon.
The sportswear maker has hit $10.7 billion in global revenue lifted by its sales in China during the first quarter ended August 31.
The US-headquartered company began consolidating its business in India in 2016 when it shuttered 35% of its stores to cut its losses. Subsequently, it downsized its workforce in the country, asking many to join its operations in Southeast Asia.
This move was part of the company’s global-restructuring process that saw it focusing on 12 key global cities such as New York, Shanghai, London, Tokyo, Paris and Mexico City, for achieving 80% of its projected growth by 2020.
The move comes as the company faces significant challenges in the retail and sportswear markets in India and globally, with a decline in performance over the past two years.
The store, which has served fitness enthusiasts who live, work, and play in South Delhi’s Saket District for the past 15 years, brings a renewed focus on women and member services to inspire Delhi-ites to make sport a daily habit.
The two-story, 743-square-meter store is fully equipped to serve athletes through membership offerings which enables consumers to make sport a daily habit.
Nike Inc said it had bought virtual sneaker company RTFKT for an undisclosed sum as the sportswear giant looks to quickly expand its footprint in the fast-growing "metaverse".
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