It’s no secret that Nike has struggled to win in the red-hot running category as of late, and has lost ground to the likes of Hoka, On and Brooks. But with a new strategy for run revealed and a strong presence at The Running Event (TRE) last week, could Nike get back on track? Industry insiders believe the answer is yes.
In a note distributed Monday from Williams Trading analyst Sam Poser said Nike’s offering at TRE “highlighted its return to performance running.” The presence of senior Nike executives at the event was another good sign about the company’s ambitions, the analyst said.
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Also at TRE, Nike revealed a new road running footwear lineup, which is comprised of three categories. Those categories are supportive cushioning (which will feature its Structure franchise), responsive cushioning (represented by the Pegasus franchise) and maximum cushioning (led by Vomero). Nike said 2025 is the year of Vomero, with the Vomero 18 arriving in February and coming in at $150.
This strategy, Nike explained, will make it easier for the runner to determine what footwear offers the correct benefits, technology and price point for them. The ultimate goal? To be more accessible to athletes entering the sport for the first time.
“The renewed focus on training footwear makes it easier to digest what each shoe delivers. It’s super clear now,” said Dan Fitzgerald, co-owner of Heartbreak Hill Running Co. The storeowner, who also is a Nike Running Coach, recalled Brooks employing a similar strategy with its shoe franchises, which was successful.
Spurwink River advisor and BCE Consulting senior advisor Matt Powell, who attended TRE last week, agrees.
“The go-to-market strategy that they outlined at the show was exactly the right one in terms of focusing on a few silos and having a three-tiered approach to that,” Powell said. “There’s a logic to it, there’s a clarity to it. Before, it felt like they had not checked all the boxes when they were coming to market. They might have had a shoe at the top end and then nothing below it, or you had to go down two levels until you found a similar shoe that related to the up market shoe.”
The insider, however, is not sold on the products Nike is set to bring to the market.
“The products around which those silos are built are a little long in the tooth, shall we say,” he said. “In order to win back run specialty, I don’t think it’s going to be an overnight sensation, unless they have a really compelling product. Right now, they don’t have that product.”
He continued, “Similarly in the broader market, there are two places where Nike can win. One is in mid market, which they abandoned during the last administration and there’s an opportunity to gain back some of that shelf space with compelling product. The second around product is in the more up market, sporting goods and mall retailers. They, too, need to see something that’s really outstanding. The product part is what was the weakest part of the presentation, I thought, at TRE.”
Because of this, Powell believes it will take two or three years until Nike is back at full strength when it comes to run, but the brand has the potential for some “early wins.”
In terms of product, Poser’s believes a much-needed turnaround could already be underway.
“Nike is working with accounts to assist in moving through poor selling styles, while strategically planning ahead, a big change since six months ago,” the analyst said in his note. “Further, discussions at TRE make us more confident that there are some new products in Nike’s sample rooms that failed to see the light of day under the old administration. The potentially hidden gems may facilitate a turnaround in under 15 months.”
About the Author
Peter Verry is the Senior News and Features Editor for Athletic and Outdoor at Footwear News. He oversees coverage of the two fast-paced and ultracompetitive markets, which includes conducting in-depth interviews with industry leaders and writing stories on sneakers and outdoor shoes. He is a lifelong sneaker addict (and shares his newest purchases via @peterverry on Instagram) and spends most of his free time on a trail. He holds an M.A. in journalism from Hofstra University and can be reached at peter.verry@footwearnews.com.
