Foot Locker has restored Nike’s running shoes to the lead columns of its men’s sections, placing them ahead of competitors such as On, Hoka, Adidas and New Balance for the first time in two years. According to JPMorgan analyst Matthew Boss, Nike had previously been positioned behind those rival brands.
Boss said in a client note that recent fieldwork indicated Nike product placement had returned to “pole position” within Foot Locker stores.
The move reflects improving ties between the two companies, after Nike scaled back its presence at Foot Locker under its former chief executive in order to prioritize its own direct-to-consumer channels. Nike products once accounted for about 75% of Foot Locker’s total purchases, but that share dropped below 60% in 2022, a shift that weighed on Foot Locker’s performance for several years.
Under current chief executive Elliott Hill, Nike has pledged to strengthen its wholesale partnerships. As part of that strategy, Foot Locker is expanding its Home Court basketball sections developed with Nike, with plans to roll out the concept to 100 stores worldwide by 2026.
Hill is also refocusing Nike on its core sports performance business, including running products built around the Pegasus, Vomero and Structure franchises, after the brand lost ground in the category while prioritizing lifestyle sneakers.
In May, Dick’s Sporting Goods Inc. announced a US $ 2.4 billion deal to acquire Foot Locker, a move that would combine two of the largest U.S. sporting goods retailers.
