Nike’s New Retail Store Blends Data And In-Store Shopping

Blending digital insights with a physical storefront experience, Nike has unveiled a new type of retail store in Los Angeles that will use customer data to determine inventory and personalize services.

The 4,557 SF Nike by Melrose at 8552 Melrose Ave. in West Los Angeles is Nike's first Nike Live concept store that the multibillion-dollar sneaker company will soon introduce to major markets worldwide.

Using insights and customer data gathered from shoppers who use the company’s NikePlus and other digital platforms, Nike officials said they uniquely curated the merchandise of the store for the “style, sport and speed-obsessed consumers of the city.”

“We’re thrilled to be opening up Nike by Melrose and bringing the best of Nike products and offerings selected for this community,” NikeDirect President Heidi O’Neill said in a news release. 

“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."

Nike’s newest retail experiment comes at a time when the retail industry is experiencing a decline of shoppers visiting storefronts and preferring the convenience and variety of shopping online. 

Last quarter, Nike’s digital sales rose by 41%, according to Business Insider.

Nike officials said the Nike Live concept was created in support of the company’s efforts to unite digital and physical shopping for its consumers, who want a more personalized experience.

The store features several services that blend digital and in-store experiences. Think Apple’s Genius bar with Nike athletic wear.

For example, NikePlus members or customers can reserve a product online and have it placed inside an in-store digital locker. They could then visit the store, unlock the locker, try on the product and have the option to buy it. 

Another feature is called Nike Express Sessions where a customer can book a one-on-one 30-minute appointment with a Nike team member, who could provide advice on athletic wear, fitting and even let the customer try on shoes and test them out on the in-store treadmill.

There is also a sneaker bar where customers can talk about and try on shoes. A curbside service option lets a customer text a Nike worker and quickly pick up, return or exchange goods without entering the store.