Chapter 14. Marketing Channels and Retailing

Nike has become the world wide leader in expanding and retailing, making it easier to move and sell their product around the world. Nike has set in motion a plan to expand its global retail foothold by opening 250 to 300 new stores over the next five years. That expansion includes a Nike Factory Store that opened at the Citadel Outlet in Los Angeles. This new store is Nike's 15th factory store in California ALONE! Nike currently has 155 factory stores open in the United States. Nike's expansion plan calls for a mix of discount type Nike stores in outlet malls and Niketown stores, which sell newer and exclusive items and are often found in upscale shopping centers all across the country. Consumers won't find the latest Nike sneakers or Air Jordans at the Nike Factory Store. Instead, the factory stores sell products left over from past seasons at prices discounted from when the items first arrived in other retail stores. Which would make it easier for customers to purchases previous items they couldn't purchase once before. The factory stores stock casual clothing, as well as products for sports such as running, training, soccer and basketball. 

For Nike, retailing is based on the customers  desires and or needs. And thats where Niketown comes into place. Niketown stores focus on selling newer footwear and apparel. Select Niketown stores, such as one in New York, Central Park feature NikeiD studios, where consumers can choose custom colors and materials on shoes made to order specifically. As a part of Nike's increased retail efforts, the company recently remodeled a Niketown location in London, expanding it to 42,000 square feet and adding a NIKEiD studio. The London Niketown store spans four floors and is the company's largest. NIke believes in space, the bigger the space the more product they can produce and put out to sell. Nike designs their store according to their market. Each floor is specifically for a certain age group or and sport. so each floor provides something new for the consumer.