It’s an uncertain time for businesses small and large right now, but Nike has beaten its sales estimates during the COVID-19 pandemic, and it has a rise in online shoppers to thank. It’s been reported that Nike’s digital sales climbed by over 30% in Greater China but their physical sales dropped by 5% due to store closures.
While 80% of Nike’s China stores have reopened, the brand has been forced to close stores in the US and Europe which has seen a further decline in physical sales. However, the brand’s chief executive, John Donahoe has said: “at a time when people were confined to their homes, we moved swiftly to leverage out digital app ecosystem and Nike Expert Trainer Network.” This has caused a 36% digital sales growth for the brand.
While Nike is managing to keep things ticking along, the same can’t be said for other major sports brands. Sales for both adidas and PUMA have seen a major collapse as the brand with the three stripes has seen a $1bn loss. It’s not clear yet how businesses across the world plan on regaining sales or coming back from the loss, but as things in China are settling down and more stores are re-opening, the market is set to level out.