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New Nike store stocks shelves using digital customer data

Sports brand Nike has opened a new concept store in Los Angeles, which the company says is stocked and set up based on “a deep understanding of the neighbourhood” thanks to analysis of digital consumer data.

Nike by Melrose is located on the city’s Melrose Avenue and it stocks a selection of Nike.com bestsellers and essentials, but it stands out for offering city-specific styles – all of which are determined by Nike’s digital commerce data. Buying patterns, app usage and app engagement are all taken into account in terms of stock merchandising and layout, to serve local NikePlus members in the way their spending and research behaviour suggests they want to be served.

It is an example of what many retailers say they want to achieve with their stores in terms of personalised service, and some of the concepts tested out in the space could be rolled out to other Nike premises.

Part of what the sports brand hopes will be a series of Nike Live destinations, the Los Angeles store stocks apparel, footwear and accessories that are all specific to the city’s needs regardless of Nike’s broader seasonal priorities. These ranges will be introduced to the store on a bi-weekly basis, which is a first for Nike, and some of the items will be city exclusives.

"We’re thrilled to be opening up Nike by Melrose and bringing the best of Nike products and offerings selected for this community," explained Heidi O'Neill, president of Nike Direct.

"As well as being the first Nike Live destination, we will also test services that can then roll out to other Nike stores, combining digital features with a unique physical environment to create the future of Nike retail.”

The store also features The Sneaker Bar, and what is described as The Dynamic Fit Zone, where Nike experts are on hand to offer tips and advice, as well as facilitate customer product testing sessions booked via the company app.

NikePlus members can redeem products or rewards by using their member pass every two weeks at the NikePlus Unlock Box, which is presented in the form of a digital vending machine in the store.

Curb Services at Nike By Melrose offers returns, exchanges or purchases via Nike’s Swoosh Text service, an SMS messaging system between the shopper and the store. It allows consumers to text the store their requirements before arrival, and aims to speed up these various processes.

Nike said additional neighbourhood-specific locations will open in cities around the globe, with one planned for Tokyo next year.

Nike's Sneaker Bar
Nike's Sneaker Bar

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