![]() ![]() Revenue, in billions, of Nike and several US department stores.īut department stores also face a more existential crisis as they try to find a place in a world that has in many ways moved beyond them, with players like Target filling the gap. Even if the revenues from those three department stores were combined, Nike still edges them out. That alone accounts for a large part of Nike's revenue advantage, which amounts to nearly three times what Nordstrom, Macy's and Kohl's each make per year. The department stores outlined above fall into the same bucket as many of the retail darlings discussed: They are largely U.S.-based, and therefore operate on a smaller scale than Nike. Nike is also a company rooted on product innovation, which gives it control and pricing power with customers and retailers." How Nike compares to department stores "Nike also has a high market share (39% of global athletic footwear and 13% of global athletic apparel) whereas many others have a small share of their respective markets. retailers, a big difference is Nike's global scale, with 40% of revenues from North America and the rest from overseas," Fernández said, noting it sells through multiple channels as well. home improvement market is approximately $700 billion, compared to the $300 billion global athletic apparel and footwear market. #NIKE ABOUT US PROFESSIONAL#Spending from professional tradespeople also helps bolster its sales further, as these are "massive industries, which spend a lot on home improvement products." In terms of market size, Fernández highlighted that the U.S. When you think about it, the average household spends far more on food and household goods than on sneakers and sports gear, so it's not surprising that a food player can generate strong sales results."įor Home Depot, which makes about three times as much as Nike, the company operates in a much larger market and is the "clear market leader," Saunders said. ![]() The price of each item is low, but it sells a phenomenal number of products each year. "Dollar General's whole model is based on volume, which it secures by selling consumables, which people buy regularly. "Dollar General is mostly U.S., so it actually does very well to be just $10 billion behind Nike, which sells all over the world," Saunders said. Nike is certainly a favorite in its own space, but how much does the retailer make compared to other retail favorites? Retail always has its favorites, which have impressed for one reason or another, and therefore remain closely watched by competitors and often praised by outsiders. "Lastly, Nike has been a more consistent operator whereas other brands have had execution missteps over the years." How Nike lines up against other retail darlings Nike has "spent a lot on marketing and made it a priority to sign top athletes and remain culturally relevant (sometimes making social statements), making the brand top of mind for consumers," Cristina Fernández, a senior equity analyst at Telsey Advisory Group, said via email. Nike remains one of the top apparel brands for teens, even as others falter. The company has become well-known for powerful, and gutsy, marketing campaigns, and has largely managed to withstand challenges to its image over the years. On a less tangible front, Nike has strong brand resonance. "Adidas has failed to make compelling product for the U.S. the brands compete more equitably, but Nike is four times the size of Adidas in the U.S., according to Powell. "The differential between Nike and Adidas is the U.S.," Powell said. market, which also helps explain its dominance over Adidas, which was founded long before Nike, in 1949. But perhaps the biggest differentiator is Nike's hold on the U.S. Nike possesses a far greater global distribution than the two younger brands, which are more focused in North America. Nike competes more broadly in the footwear space than the others, and Lululemon is centered more squarely around yoga and wellness. Under Armour and Lululemon are also more niche than Nike, experts said. "So, in some ways, you could actually argue that Luluelmon is growing faster than Nike did in its early days." In its first 23 years Nike went from nothing to a $1.2 billion revenue business in 1987 - the equivalent of $2.9 billion in today's money," Saunders said. "Lululemon is 23 years old and during its lifetime has gone from nothing to a $4.4 billion revenue business. Revenue, in billions, for top athletics retailers in the U.S. ![]()
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