Nike is quietly closing its neighborhood local stores across the country.
Launched as Nike Live in 2018, the concept debuted in Los Angeles as a neighborhood-based, hyperlocalized format. That location in Melrose, along with at least 14 others, are now permanently closed. The closures span California, Colorado, Georgia, Illinois, New Jersey, New York, Florida, Kentucky, Maryland, Missouri, North Carolina and Texas.
“Like all retailers, we regularly evaluate our fleet and make adjustments across our marketplace to better align to our strategy for growth, including elevating stores and streamlining our physical retail footprint,” a Nike spokesperson told Retail Dive in a statement. “This is part of our work to create Nike's future marketplace.”
Nike in 2020 said it could open up to 200 small footprint locations across North America, Europe, the Middle East and Africa following its tests of the Nike Live format. A spokesperson did not respond to questions on the number of Nike Live stores at their peak. Nike Live locations were rebranded as Nike Well Collective stores in 2023.
The company did not address questions about its future strategy for the neighborhood store concept or whether this was the extent of the closures.
On an earnings call with analysts this summer, Nike CEO Elliott Hill said the company was taking “important steps” tied to its Nike Direct strategy, including elevating the customer experience and discounting less online.
“We've elevated more than 150 stores with sport-led experiences,” Hill said. “Over time, we will continue to rezone and elevate our fleet and close the doors that are no longer aligned to our strategy. At our scale, this takes time. We're not finished yet. I'm confident our investments in the integrated marketplace will pay dividends for years to come.”
The Nike Live locations were part of a strategy to expand Nike’s DTC business. For a while, the model worked, but its success faltered under former CEO John Donahoe. With Hill at the helm, the retailer has swung back the other direction, prioritizing wholesale partners and mending relationships.
Despite closing several of these small-format, highly localized stores, Nike teamed up with Foot Locker on Monday to open a neighborhood-driven store that mimics a community rec center. The Crenshaw Rec by Foot Locker features a hyperlocal assortment, as well as several rec center features including a gym, an equipment room, creative workspaces and a resource center offering local programming.
