Nike Integrates Loyalty Program With Dick’s Sporting Goods

Nike is linking up its loyalty program with Dick’s membership to allow shoppers to buy exclusive Nike shoes and apparel on Dick’s website, the two companies announced Wednesday.

The program will expand over time to include workout events at Dick’s store locations. Shoppers may also be able to drop off their Nike returns or pick up their online orders at Dick’s stores.

The partnership between the two companies comes at a time when sporting goods companies such as Adidas, Under Armour and Nike, have all been reducing their reliance on wholesale retailers and have instead been focussing on selling directly to their customer base at higher rates.

Nike, for one, saw its wholesale revenue account for 61 percent of its total sales in fiscal 2021, down from 65 percent the year before, CNBC reported.

The approach, however, will enable Nike to form closer relationships with its customers and better assess their wants and needs.

“We have a very diverse set of consumers at Nike, and we need to be able to serve that diverse group of consumers,” said Sarah Mensah, vice president and general manager of Nike’s North America division.

“We really believe that it represents the future of retail … and this is really what partnership means — to the next level.”

Dick’s, meanwhile, is likely to see an increase in shoppers at its physical stores. Nike is currently Dick’s largest vendor, reportedly accounting for 19 percent of merchandise sales.

“You’ve seen the brands that have been very vocal about getting out of certain distribution that doesn’t bring their brand to life in the best way,” said Dick’s Chief Executive Lauren Hobart. “But Nike and our other partners recognize that you need to have a physical footprint.”

Hobart expects the partnership to provide Dick’s with access to more popular lifestyle sneakers aside from performance-focused shoes. This could help the company become a destination for anticipated product drops.

“This is going to unlock a whole new tier for us,” she said. “It will continue to drive that brand relevance that Dick’s has some of the best shoes in the marketplace. … We’re now partnering on this longer-term roadmap with Nike.”

Nike Expects Revenue To Exceed $50 Billion

Originally published at on November 3, 2021.

Retail News and Analysis

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