Nike Inc. opened the doors to its first Community Store in California — the sixth of its kind — tapping a more than 19,000-square-foot space in East Los Angeles.
The store opening comes a day after the Beaverton, Oregon-based firm said it’s looking to hit $50 billion in revenue by the end of its fiscal year 2020, ending in May, through a combination of strategies that includes growth in the direct-to-consumer business. The company reported annual revenue for the most recently ended fiscal year of $30.6 billion, an increase of 14 percent in constant currency.
The Community Store format is one part of growth strategy, although it’s unclear just how much of the direct business it accounts for and how much room there is for growth of the concept.
“Direct-to-consumer is a tremendous growth business for Nike, making up 23.1 percent of Nike brand revenue in full-year 2015 and our community stores are one element of this,” said Christiana Shi, president of Nike’s global direct-to-consumer business in an e-mail. “These unique stores are part of Nike’s efforts to invest in the communities where we do business, and we’ve been very encouraged by the response so far.”
The Community Stores place a heavy emphasis on involvement, whether that be through local hiring or participation in organizations such as the Boys and Girls Clubs of East Los Angeles.
The East L.A. store, which is expected to hold an opening celebration this evening that includes Congresswoman Lucille Roybal-Allard and Giovani dos Santos of the Los Angeles Galaxy, totals 19,400 square feet. It carries products for men, women and children. It also offers mobile checkout.
The East L.A. store joins existing Community Store formats in Portland, Chicago, New Orleans, Brooklyn and Washington D.C.
Shi said the company continues “to explore additional stores where we feel we can positively impact local communities,” although declined to provide specifics behind where future Community Stores may open.