While reporting its quarter results last Friday (see the next story in this issue), Nike announced that it has taken over Zodiac, a consumer data analytics firm operating out of New York and Philadelphia. The acquisition is meant to add to Nike's resources in terms of consumer data and analytics, which should help to enhance its relationship with consumers.
Mark Parker, Nike's chairman, president and chief executive, said in a conference call with analysts that the group has been working with Zodiac for several months, using its proprietary algorithms. It's particularly upbeat about its ability to more efficiently leverage its digital community, to capture demand signals in key cities and cater for it rapidly through its “Express Lane” program.
Nike has made it a priority to upgrade its digital capabilities. The news about the special investment by the Swoosh came just after the revelations about the shady data gathering tactics via Facebook used by Cambridge Analytica, yet retailers and consumer don't have to worry about Nike's move. Big data have become the buzzword in marketing and retailing, and they are being used especially by the major e-tailers.
In an unrelated development, Nike announced the departure of Trevor Edwards, president of the Nike brand. The 55-year-old manager, who had been touted as one of Parker's possible successors, will “retire” from the brand in August, said the company, without giving a clear explanation. He has been with the Swoosh since 1992. In announcing his resignation, Nike said that Parker will remain in his job beyond 2020, when he will reach the age of 65.
As it turns out, Edwards is being accused of improper behavior. Without giving any details about the cause of the complaint, an internal memo circulated among the company's employees just before the announcement mentioned reports of “behavior occurring within our organization that do not reflect our core values of inclusivity, respect and empowerment.” Reportedly, Edwards used the word “mediocre” to describe retailers that Nike does no longer work with.
Edwards is not the only Nike executive to go. Jayme Martin, general manager of global categories for the Nike brand, is reportedly leaving the company, too. He was reporting directly to Edwards.
