Nike is using hyperlocal data to determine what products it stocks in its new west LA shop, Nike by Melrose.
Nike is using its digital commerce data with a machine learning algorithm to display local buying patterns. For example, Nike knows that its LA customers buy a lot of its Cortez trainers, so it’ll stock more of that shoe in more colors and display it prominently. It gets even better when customers use the Nike retail app to scan the QR code on any product in the store to find out more information about it.
During the research process, LA-based customers told Nike: ‘We want it fast.’ So, they created a time-saving feature called SwooshText, which allows customers to buy whatever they want via SMS, then have it delivered to your car when you arrive at the store.
Why it’s hot
This shop launch is part of Nike’s new city-focused business strategy. Last year, the brand announced that it would be ‘moving even closer to the consumers through key cities’ and, in doing so, start ‘deepening one-to-one connections’.