If you‘ve shopped for athletic shoes or apparel at Target recently, you may have noticed a big change: Nike products are nowhere to be found. The famous swoosh logo that was once prominently featured in Target‘s activewear departments has vanished from the shelves and Nike is no longer available on Target.com. In 2020, after a partnership of over 20 years, Nike made the surprising decision to end its wholesale relationship with one of the nation‘s largest retailers.
As a longtime Target shopper and a fan of affordable Nike gear myself, I was disappointed by this news. Target was an accessible and convenient place to pick up Nike shoes, clothing, and accessories for the whole family while getting the rest of my shopping done. The prices were competitive too, with frequent sales and promotions. So what happened to the Nike-Target partnership, and what are the best alternatives for active, budget-conscious shoppers? I did some research and analysis to get you answers.
The Rise and Fall of Nike at Target
To understand the impact of Nike‘s exit from Target, it‘s helpful to look at the history of their partnership. Nike first started selling through Target in 2000, initially offering a limited assortment of athletic shoes and apparel. Over the years, Nike expanded its presence at the retailer, becoming one of the most prominent brands in Target‘s activewear business.
By 2015, industry analysts estimate that Target accounted for around 3-4% of Nike‘s total North American sales. That may not sound like much, but it translates to over $1 billion in annual wholesale revenue for Nike. At its peak, you could find hundreds of Nike products at a typical Target store, from entry-level running shoes to performance apparel and equipment. Nike was one of Target‘s most important national brand partners in a category dominated by the retailer‘s in-house labels.
However, in 2020, Nike announced it would end its wholesale partnership with Target. Nike provided no specific reason for the decision, but there are a few key factors that likely influenced the move:
Elevating Brand Positioning: Over the past few years, Nike has been focused on elevating its brand and positioning itself as a premium, aspirational label. Having such a large presence in mass market discount retailers like Target may not align with that upscale image Nike wants to project. By concentrating on its own direct-to-consumer channels and a smaller group of strategic retail partners, Nike can better control how the brand is presented to consumers.
Encouraging Direct Purchasing: With Nike products so widely available at Target‘s affordable prices, shoppers have less incentive to visit Nike‘s own higher-priced stores and website. Pulling out of Target could help drive more traffic to Nike.com and its full-price retail locations, capturing higher margins for the company. Nike has made direct sales a big priority, aiming for 50% of its revenue to come from owned and operated channels.
Focusing on Key Partnerships: While Target was a significant wholesale account, Nike is concentrating its wholesale business on essential strategic partners like Foot Locker, Dick‘s Sporting Goods and Nordstrom. These are retailers that can provide a more premium showcase for Nike products and storytelling compared to a mass merchandiser like Target.
Making Way for Target‘s Private Labels: From Target‘s perspective, removing a major brand like Nike opens up floor space and digital shelf space to expand its own higher-margin in-house sportswear brands. Many of Target‘s private labels are priced and positioned as more affordable alternatives to Nike. With strong sales growth in lines like All in Motion, Target likely sees an opportunity to capture more activewear market share.
The following table shows how Nike‘s wholesale business has shifted in recent years, with more focus on key sporting goods and specialty athletic retailers versus mass merchants like Target:
| Nike Wholesale Revenue by Channel | FY 2018 | FY 2020 |
|---|---|---|
| Sporting Goods (Foot Locker, Dick‘s, etc.) | 33% | 39% |
| Athletic Specialty (Finish Line, etc.) | 21% | 24% |
| Department Stores & Mass Merchants | 29% | 22% |
| Others | 17% | 15% |
Source: Nike financial filings
While it‘s clear Nike‘s absence leaves a major hole in Target‘s athletic footwear and apparel assortment, the decision fits into both companies‘ focus on more profitable sales channels. Nike gets to focus on its most important wholesale accounts and owned retail, while Target can lean harder into its successful private brands. Still, it does mean Target shoppers now have fewer choices when it comes to affordable, high-quality activewear.
Where to Find Nike After the Target Exit
Even though you can‘t buy Nike at Target anymore, there are still plenty of other places to find the latest Nike shoes, clothing and gear. Here are your best bets:
Nike.com and Nike Stores: To access the widest selection of Nike products at full price, your top choice is the brand‘s own website and retail stores. Nike operates over 1,000 stores worldwide along with its e-commerce site. You‘ll find the most comprehensive assortment here, including limited edition launches and collaboration products you won‘t see at other retailers.
Sporting Goods Stores: Large athletic specialty chains remain among Nike‘s most important wholesale partners. At retailers like Dick‘s Sporting Goods, Academy Sports + Outdoors, and Hibbett Sports, you‘ll typically see a wider variety of Nike performance footwear and apparel for sports and training. The in-store presentation and associate knowledge is usually a step up from department stores as well.
Athletic Footwear Specialists: Nike is a dominant brand at sneaker and sporting goods chains like Foot Locker, Finish Line, and Champs Sports. These retailers are top destinations for the latest and greatest Nike shoe releases along with a deep selection of Nike apparel and accessories.
Department Stores: You‘ll still find a solid assortment of Nike products at traditional department stores like Kohl‘s, Macy‘s, Nordstrom, and Dillard‘s. The focus is more on casual lifestyle and fashion-oriented Nike items, with less emphasis on true performance gear. Prices are reasonable but not as competitive as a mass merchant like Target.
Online Marketplaces: Consumers can also find select Nike styles on e-commerce sites like Amazon, Zappos, and Fanatics. Selection is more limited than Nike‘s own channels but you can sometimes find good deals, especially on older models. Just be cautious of third-party marketplace sellers as counterfeit Nike products can sometimes slip through.
While all of these retailers sell genuine Nike merchandise, it‘s important to note that selection is still curated compared to Nike‘s own DTC channels. You likely won‘t see every color or size available, and some limited edition items may be exclusive to Nike.com or Nike stores. But for most consumers, these wholesale partners still provide plenty of options to shop Nike.
How Target is Filling the Gap
Now that Nike products are no longer on the shelves at Target, how is the retailer adjusting its activewear merchandising strategy? Target has made some smart moves to expand its own private label athletic brands while partnering with other national labels to round out the assortment.
The star of Target‘s activewear lineup is now All in Motion, an in-house brand that has quickly become a guest favorite since launching in 2020. Offering a wide range of apparel and footwear for men, women, and kids, All in Motion is positioned as an affordable but high-quality alternative to Nike and other major athleticwear brands.
Target has invested significantly in product design and development to give All in Motion a competitive edge. The brand‘s performance apparel incorporates many of the same technical features you would find from Nike, like moisture-wicking and quick-dry fabrics, four-way stretch materials, and flat-lock seams to minimize chafing. All in Motion‘s footwear selection includes running shoes with lightweight knit uppers and responsive cushioning, training shoes with stability features, and lifestyle sneakers with on-trend designs.
From a price perspective, All in Motion is very competitive with Nike‘s entry-level offerings. Basic cotton tees start at around $10, while technical tops and bottoms typically range from $20 to $40. All in Motion‘s performance shoes are usually priced from $30 to $50, representing a 20-40% discount to comparable Nike styles. That makes the brand accessible to a wide range of budgets.
Here‘s a comparison of how some key All in Motion items stack up against Nike on price:
| Product | All in Motion | Nike |
|---|---|---|
| Men‘s Running Shoes | $37.99 | $65 |
| Women‘s Cotton Tee | $10 | $25 |
| Men‘s Shorts | $22 | $35 |
| Women‘s Sports Bra | $20 | $30 |
Prices as of May 2023 on Target.com and Nike.com
All in Motion has been a home run for Target, generating over $1 billion in sales in its first year alone. And the brand shows no signs of slowing down, with Target continuing to expand the assortment and incorporate more premium materials and construction. While not a true one-for-one replacement for Nike in terms of technology or fashion credibility, All in Motion offers great performance and value for the money.
Beyond All in Motion, Target has also brought in more products from established athleticwear brands to help fill the shelves after Nike‘s departure. The retailer has significantly expanded its partnership with Reebok in particular, which now offers a wide selection of sneakers, apparel, and accessories at very reasonable prices. Target also continues to stock ASICS and New Balance for quality running and walking shoes.
Interestingly, Target does still carry some products from Nike-owned brands, including Converse and Hurley. The focus for these lines is more on casual streetwear and surf-inspired apparel rather than true performance gear. But their presence does allow Target to still offer a taste of the Nike corporate umbrella.
The Bottom Line for Nike Fans and Target Shoppers
There‘s no sugarcoating it: Nike‘s exit from Target is a disappointing development for consumers who appreciated the convenience and affordability of buying Nike products there. It‘s a rare case of a retailer losing a marquee national brand partner that drove significant sales and traffic.
However, when you dig deeper into the reasoning behind the move, it does make strategic sense for both companies. Nike gets to focus on more upscale retail partners and its own stores to build a more premium positioning, while Target can reallocate shelf space and resources to higher-margin owned brands. As much as we might miss seeing the Nike swoosh at Target, the decision reflects the diverging priorities of both businesses.
The good news for shoppers is that Nike is still widely available through the brand‘s own growing retail footprint and key wholesale accounts like sporting goods and department stores. Selection may be more limited and prices a bit higher compared to Target, but the core Nike experience is still accessible.
As for Target, the retailer seems well-positioned to grow in activewear even without Nike. All in Motion has proven to be a worthy successor in terms of delivering style, performance, and value to Target‘s guests. The brand is resonating with shoppers and generating strong loyalty. With Target continuing to invest in All in Motion and bring in more outside athleticwear partners, consumers will still have plenty of compelling options to choose from.
At the end of the day, the Nike shopper and the Target shopper are not one and the same. Nike‘s core customer is looking for the latest and greatest in product innovation, is influenced by sports stars and cultural tastemakers, and is willing to pay a premium for the brand. Target‘s guest is more focused on getting a quality, versatile product at a great price from a retailer they trust. Those are two different markets that are diverging rather than converging.
Change is a constant in retail, and sometimes even the most successful partnerships don‘t last forever. While we may miss the convenience of grabbing Nike gear on a Target run, both companies will move forward and continue to thrive by focusing on their respective strengths. As shoppers, we can still find great Nike products in other channels and turn to Target for stylish, affordable activewear from its stable of owned and national brands.
