Nike (NYSE:NKE) has debuted its women's only apparel shop inside the Macy's (NYSE:M) store on State Street in Chicago. The store is the first of its kind in the Midwest and follows similar Nike pop-ups in the chain's California and New York stores.
A second shop will open in the Macy's in Oak Brook, Illinois later this month, reported Crain's Chicago Business.
Known as the Nike Training Club shops—exclusively at Macy's and featuring a fitness app, social media marketing and studios with free workouts—the pop-ups sell women's clothing but will not feature the workout classes found at the flagship store on Michigan Avenue.
The brand's group workouts are expected to drive sales at the new NTC shops. Over the summer, Nike held weekly Saturday classes at locations around Chicago and attracted thousands of women in their 20s and 30s. The experiences were talked about through social media—65 million women globally engage with Nike on social media.
The classes have boosted sales in sports bras and workout leggings, which were introduced at a time when yoga pants were growing in popularity and Lululemon's (NASDAQ:LULU) troubles created a hole in the marketplace. In the past year, Lululemon has seen setbacks in management—founder Chip Wilson recently agreed to sell half his remaining shares, 27.7 percent, to Advent International, ending a one-year battle with the board—and production—last year yoga pants had to be recalled for being so sheer that they were see-through.
In fiscal 2014, apparel accounted for 29.2 percent of Nike's revenue, second to footwear, which accounted for 60 percent. In the first quarter, the brand reported a 70 percent increase in e-commerce sales and an overall revenue jump of 15 percent.
-See this Crain's Chicago Business article
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