Nike has closed over a dozen of its small-format, neighborhood-focused stores across the country.
The athletic giant initially launched its digitally enabled neighborhood-store concept, Nike Live, in Los Angeles in 2018. The original Melrose store used local customer data to stock products based on what neighborhood shoppers wanted. It also integrated Nike’s app and membership program, letting customers reserve products, try them in-store, pick up purchases and access personalized products and services.
That location and at least 14 others have since permanently closed, with shutdowns across 13 states, including California, Colorado, Georgia, Illinois, New Jersey, New York, Florida, Kentucky, Maryland, Missouri, North Carolina and Texas, Retail Dive reported Wednesday.
“Like all retailers, we regularly evaluate our fleet and make adjustments across our marketplace to better align to our strategy for growth, including elevating stores and streamlining our physical retail footprint,” a Nike spokesperson told Retail Dive in a statement. “This is part of our work to create Nike’s future marketplace.”
The Independent has contacted Nike for comment.
Nike once had big plans for its small-format neighborhood stores. In 2020, after testing the Nike Live concept, the company said it could open as many as 200 locations across North America, Europe, the Middle East and Africa.
The Live locations were rebranded as Nike Well Collective stores in 2023, expanding the concept around wellness and fitness.
Nike did not say whether it plans to continue the neighborhood-store concept or if the reported closures represent the full extent of the shutdowns, Retail Dive reports.
On a summer earnings call, Nike CEO Elliott Hill said the company is making changes to its Nike Direct business, including improving the in-store experience and relying less on online discounts.
“We’ve elevated more than 150 stores with sport-led experiences,” Hill said, according to Retail Dive. “Over time, we will continue to rezone and elevate our fleet and close the doors that are no longer aligned to our strategy. At our scale, this takes time. We’re not finished yet. I’m confident our investments in the integrated marketplace will pay dividends for years to come.”
Nike Live stores were originally part of the company’s direct-to-consumer strategy, allowing Nike to sell directly to shoppers while using customer data to create more personalized, neighborhood-specific experiences. The approach worked for a while, but its momentum faded under former CEO John Donahoe, according to the outlet.
Now, under Hill, Nike is changing course. The company is focusing more on wholesale partners and rebuilding relationships with retailers, even as it closes some of its smaller Nike Live locations.
Still, Nike is not giving up on the idea of community-focused retail altogether. The company recently teamed up with Foot Locker to open Crenshaw Rec by Foot Locker in Los Angeles, a neighborhood store designed to feel more like a community recreation center. It features a local-focused product selection, gym, equipment room, creative workspaces and a resource center with community programming, Retail Dive reports.