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Nike increases digital fulfillment capacity 3x due to pandemic

  • Nike adjusted its inventory buying plans and canceled roughly 30% (on a unit basis) of pre-pandemic factory purchase orders for the fall and holiday seasons, the company’s CFO Matt Friend said on its fourth-quarter earnings call Thursday.

  • The company also shifted more inventory to serve e-commerce markets and tripled its digital fulfillment capacity across its North American and European, Middle Eastern and African markets, Friend said.

  • “In Q4, we already pivoted our new adaptive distribution facility in North America to fully support digital demand,” Friend said. “And we plan to open a new regional service center on the West Coast before the holiday season to forward deploy digital inventory, leveraging advanced analytics and demand sensing capabilities from our acquisition of Celect.”