Dive Brief:
- Foot Locker and Nike are teaming up on a neighborhood location in Los Angeles’ Crenshaw area, according to a joint press release Monday. Dubbed The Crenshaw Rec by Foot Locker, it’s the first of a new concept aimed at providing neighborhood-level localization.
- The Crenshaw location opens on Saturday and is inspired by “the role recreation centers have long played as gathering places for sport, culture and connection.” Several features pay homage to that vision, including a gym, an equipment room, creative workspaces and a resource center offering local programming.
- The two athletic retailers describe the space as “both a shopping destination and community hub,” with an assortment that is “hyper-local.” The space was created alongside Crenshaw High School, local vendors, Nipsey Hussle's The Marathon Brand and Los Angeles designer Gavin Mathieu.
Dive Insight:
Both in the midst of turnarounds, Foot Locker and Nike are teaming up to be your friendly neighborhood athletic store.
"The Crenshaw Rec by Foot Locker reflects our commitment to investing in the communities that have shaped our brand and continue to move sneaker culture forward," Foot Locker Chief Marketing Officer Brett O'Brien said in a statement.
The neighborhood format is reminiscent of a store concept Nike debuted in 2018, dubbed Nike Live. That small-format concept, part of a multipronged store strategy from the Nike of a few years ago, was intended to be localized on a neighborhood level. While the retailer in 2020 said it could open up to 200 Nike Live stores, the original location — Nike by Melrose — is now permanently closed. A Nike spokesperson did not immediately respond to a request for comment on the status of the store format.
For Foot Locker, the concept represents one of several steps to revamp its footprint under new owner Dick’s Sporting Goods. As of May, Foot Locker had refreshed around 100 of its store locations and was aiming for 250 by the back-to-school timeframe. The revamp effort was based on an 11-store pilot which Dick’s Executive Chairman Ed Stack said led to “very strong, positive comps.” Improvements include reducing the number of SKUs on display, clearer storytelling and better overall presentation.
Foot Locker’s relationship with Nike is critical to its success and improving vendor relationships has been a focus point as Dick’s took over running the business. The company also recently launched a new brand platform to position Foot Locker at the center of sneaker culture.
