Nike (NYSE:NKE) opened its first Community Store in California in East Los Angeles. The 19,000 sq. ft. location is the sixth store of its kind.
The Community Store is part of Nike's direct-to-consumer growth strategy. This channel is responsible for 23.1 percent of Nike's overall revenue in 2015, Women's Wear Daily reported.
The doors opened just one day after the company said it is hoping to reach $50 billion in revenue by the end of 2020 with help from the direct-to-consumer business. The most recent fiscal year saw a revenue increase of 14 percent, reaching $30.6 billion. Store count jumped from 768 last year to 832 as of August.
The Community Store puts a focus on involvement by hiring local talent or participating in local organizations like the Boys and Girls Clubs. The new location in East Los Angeles carries products for men, women and children, and also offers mobile checkout.
Other Community Stores exist in Portland, Oregon; Chicago; New Orleans; Brooklyn, New York; and the District of Columbia.
Despite the efforts to increase physical store count, nothing seems as powerful right now as Nike's e-commerce unit, which was up 59 percent last year. E-commerce sales crossed the $1 billion threshold for the first time and clocked in a record-breaking 70 percent sales increase in one quarter. Combined, direct-to-consumer sales rose 25 percent last year to total $6.63 billion.
-See this Women's Wear Daily article (subscription)
Nike opens technology-driven store in Seattle
Nike e-commerce up 70% last quarter
Dick's Sporting Goods opens first women's store
Nike's newest concept store is built out of 100 percent trash
Nike Uses real-time mobile data to predict when to send ads