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Here’s How Nike Hopes to Hit $7B in Digital Sales by 2020

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Nike digital commerce

As the undisputed leader of the athletic apparel and footwear world, Nike raised few eyebrows last October when it declared its plan to grow annual sales to $50 billion by the end of fiscal 2020. What seemed to fly under the radar, however, was the Beaverton, Oregon-based company’s desire to hit $7 billion in digital commerce revenue within that timeline, too.

Speaking Tuesday during a keynote session titled, “Retail Disrupted: Navigating the Digital Age” as part of the National Retail Federation’s (NRF) 2016 Big Show in New York, president of Nike’s global direct-to-consumer business Christina Shi outlined how the company plans to meet that deadline.

‘We believe it’s our job to put the consumer at the center of everything we do, by giving them easy access to Nike products and experiences in distinctive retail environments online and in-store,” Shi said. “We’re consistently delivering for our consumers around the globe every day and digital is a vital piece of our strategy.”

First, Nike is “dramatically improving” the digital commerce experience, leading with mobile, by adding style guides, elevating imagery, broadening assortments and increasing site performance. Additionally, the company is expanding Nike.com to more markets around the world (it’s currently available in more than 30), leveraging a common global e-commerce platform.

Seamless commerce is another slice of the strategy.

“Over the last two years we’ve connected all our U.S. stores, both Nike and Nike Factory, to one mobile checkout and in-store platform. This gives us the opportunity to let consumers shop online and in-store at the same time in a single transaction,” Shi explained. “With this capability Nike.com in-store sales are contributing incremental revenue by giving our consumers access to that endless aisle of Nike products.”

The same capability recently launched in the U.K. and now Nike.com consumers have the ability to order from the British e-commerce site and collect their order from 80 different pickup points across Europe. The company plans to continue rolling out the program to more stores in more countries around the world.

That’s not the only part brick-and-mortar plays. Nike’s Community Store concept is also bridging the gap between online and offline retail with a digital studio. Shi called it “an example of how digital can be disruptive at a local level.”

“Consumers can select the product that’s right for them with expert assistance from our in-store athletes. They can also see and try on product we might not carry in that story in a premium showroom environment, and they can digitally build a cart in a single mobile transaction and checkout with no shipping cost,” she said. “They can pay in cash for online purchases which creates digital access in those communities and they can their orders delivered to the store if that’s more convenient.”

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