Nike Inc.’s sneakers are front and centre at Foot Locker Inc. stores once again as the long-time partners rebuild a relationship that had frayed in recent years.

Foot Locker is positioning Nike’s running shoes in the lead columns of the men’s sections in its stores — in front of rivals such as On, Hoka, Adidas and New Balance for the first time in two years, according to Matthew Boss, an analyst at JPMorgan. Nike had previously been positioned behind all those brands.

“Our recent fieldwork points to Nike product placement returning to pole position,” Boss said in a note to clients.

The two companies are mending ties after Nike heavily pulled back from Foot Locker under its previous chief executive officer in order to prioritise its own stores and online shop. Nike products once accounted for about 75% of Foot Locker’s total purchases, but that number dropped below 60% in 2022. Nike’s strategy hurt Foot Locker’s business for years.

Nike’s current CEO, Elliott Hill, has vowed to work more closely with wholesalers. As part of that push, Foot Locker is working on expanding its Home Court basketball sections developed in tandem with Nike. Foot Locker plans to add the sections to 100 stores around the world by 2026.

Hill is refocusing Nike on its sports products and looking to boost sales of running products around the brand’s Pegasus, Vomero and Structure shoes. Nike had ceded ground to its many competitors in running while it pushed lifestyle sneakers.

In May, Dick’s Sporting Goods Inc. agreed to acquire Foot Locker in a $2.4 billion deal — an agreement that would combine two of the largest sports chains in the US.

News Credits – FASHION NETWORK