Nike’s Concept Stores Use Customer-Driven Data To Inform Their Design
The athletic brand continues to lead retail innovation practices with its data-driven concept store model in Los Angeles, with buyer-purchasing patterns and app usage from its loyalty members informing bi-weekly merchandising
Nike recently announced the opening of its new concept store in Los Angeles, California, Nike By Melrose. The athletic brand, known for being on the cusp of retail innovation, is using customer-driven data to locally tailor the design and merchandise in the store to cater to its L.A. consumer base. In addition to its state-side location, Nike also announced that the brand would erect another locally-tailored concept store to opens in Tokyo, Japan, in spring 2019.
These concept stores use customer data from their surrounding zip codes to hyper-curate their retail environments. The Melrose store is not a pop-up shop and has no plan to shut down anytime soon. However, the store will run on an “experimental digital-meets-physical” short-scale retail model.
The Nike By Melrose location will feature retail elements such as a Sneaker Bar, making it simpler for customers to try on footwear. The Dynamic Fit Zone has a lounge where consumers can sit and relax while store “experts” offer them personal styling tips. Additionally, the Nike Trial Zone will have a treadmill so shoppers can test out the sneakers before they purchase them.
Members of NikePlus, the retailer’s recently relaunched loyalty program, can receive products or rewards by using their membership passes at the Nike Unlock Box, the brand’s version of a digital vending machine.
Unsurprisingly, Nike’s collected consumer data shows that Los Angeles-based customers favor running, basketball and fashion-focused product styles. The store will be restocked on a bi-weekly basis, breaking apart the otherwise existing supply chain.
To understand the needs of their Los Angeles consumers, Nike analyzed data such as buyer purchasing patterns, app usage, and engagement among local NikePlus members to curate the retail location. While most retailers merchandise their stores based on seasonal buying calendars, Nike By Melrose will curate the store’s offerings their unique consumer behaviors and taste preferences.
Nike is a company that’s regularly leading the way in retail innovation. While generally brands utilize pop-up retail locations to conduct consumer research, Nike’s concept stores serve to corroborate the brand’s pre-existing confirmation bias (such as Los Angelenos being obsessed with fashion and fitness). By turning the post-digital consumer journey on its head, Nike’s concept stores experiment with the future importance and role of physical retail in consumer’s lives.