Nike and Lulu Stores Draw in Customers With ‘Experiential’ Stores

• Walk-in traffic at Nike and Lululemon stores has both increased over the past three months
• During the same period, walk-in customers in sportswear stores declined.
• Analytics firm Placer.ai said “experimental” designs seem to be working for Nike and Lululemon.

Walk-in traffic at Lululemon and Nike stores increased in February, although walk-in traffic at activewear stores overall declined. It’s the latest sign of each brand’s popularity and the strength of their “experimental” brick-and-mortar approach.

Traffic at Lululemon stores increased by more than 11% and Nike stores by nearly 6%, while traffic at athletic apparel stores fell by almost 8%, according to a new report from Placer.ai, a retail analytics firm.

The sportswear category for Placer.ai includes chains like Dick’s Sporting Goods and Hibbett.

It was the third month in a row that traffic at Nike and Lululemon stores increased while overall traffic at athletic apparel stores fell, a signal that the way each brand is using experiences to get customers through the front door bring works.

Lululemon stores host yoga classes. Nike’s has experimented with several new store concepts in recent years, including limited edition clothing sold only in the store and products specific to the community or store location.

“At a time when brick-and-mortar stores must compete with the ease of online shopping, a unique experience can compel shoppers to walk through the door,” Placer.ai wrote.

Placer.ai did not provide a detailed breakdown of stores in its sporting goods category.

Nike and Lululemon are both focused on expanding direct sales.

At an investor day last year, Lululemon executives cited the company’s direct consumer focus as a core strength. The Company mainly sells through its stores and online channels. Only 11% of Lululemon sales come from external channels.

“Our DTC model offers a significant competitive advantage,” the company said in an analyst presentation.

Nike announced its Consumer Direct Acceleration in 2020, a business plan focused on direct, digital sales. It builds on the Consumer Direct Offense of 2017. As part of this focus, Nike has expanded its in-store fleet. Since 2017, Nike’s direct business has grown 106%, while its wholesale business has grown just 11%.

As walk-in traffic increases in Nike and Lululemon stores, several brands including Nike, Adidas and Allbirds have signaled renewed interest in wholesale channels in recent months.

Nike will announce its quarterly figures next Tuesday. Lululemon reports its quarterly results on March 28th.