Shopping at Nike returns - in China, South Korea
Nike says all of its stores and more than 95% of its partner stores in greater China and South Korea are now open.
On Thursday, May 14, the company said, "While physical store traffic remains below prior year levels, this is largely offset by higher conversion rates and continued strong digital demand."
Some stores are operating with reduced hours, but people are spending more per visit.
"We are encouraged by the recovery we are seeing in greater China and South Korea as we continue to deepen our connection to consumers," said John Donahoe, Nike Inc. president and CEO. "Even more so, consumers around the world are recognizing the need for an active and healthy lifestyle, and sport is now more meaningful than ever."
Nike opened its stores in China and South Korea in mid-March as the COVID-19 pandemic lifted there first, while keeping other outlets around the world closed.
The company said that because of store closures, product shipments to wholesale customers have slowed, resulting in significantly lower wholesale revenue and higher inventory.
Nike touted its "digital ecosystem" saying it was seeing new member acquisition and strong digital demand across the global marketplace.
Specifically, store reopenings have begun in over 15 countries including Germany, France, the Netherlands, Brazil and the United States. Currently, roughly 5% of Nike-owned stores in North America are open.
The release concluded, "We are operating in a dynamic environment which will continue to evolve. Furthermore, the full extent of the impact of the COVID-19 pandemic on Nike's operational and financial performance remains uncertain and will depend on many factors outside of Nike's control."
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