Fox to open flagship Nike store in Toronto

Israeli fashion chain Fox-Wizel Ltd. (TASE: FOX) has taken another step in strengthening its ties with global athletic footwear, apparel and accessories giant Nike, setting up a two-story 3,000 square meter department store in Canada, according to sources briefed by “Globes “. The Niketown store will be located in Toronto’s Yorkdale Mall. Fox will invest $12 million in the new store opening, a substantial portion of which will be funded by the mall.

The store is scheduled to open in November 2020, with a 10-year lease and a five-year extension option. The store’s annual sales are estimated to be over $20 million.

Niketown is a large, multi-story concept store with outlets in North America and Europe that showcases both Nike products and the technologies within them. It will be Fox’s largest store in the world. Fox already operates seven Nike stores in Canada through its Retailers subsidiary, while Fox Canada operates six cosmetics stores.

Yorkdale is owned by income-generating real estate company Oxford, which recently opened the Hudson Yards shopping center in New York. The opening of Niketown in the Yorkdale Mall is a major vote of confidence in Fox, as it will be one of Nike’s flagship stores, while the mall’s landlord funding also reflects Fox’s growing reputation.

Fox, controlled by Harel Wizel, has a non-exclusive franchise to open Nike stores in Israel. Over the years, Fox has purchased all of the Nike-branded stores in Israel except the Outlet stores, which are operated by various franchisees. Fox also opened new Nike stores in Israel and has a chain of 22 Nike stores with 376 employees.

30 months ago, Fox strengthened its ties with Nike by signing an agreement with Nike Canada, which granted it a license to establish a chain of stores in Canada over seven years. In 2018, Nike Canada had 218 employees.

Fox, which has a market capitalization of NIS 1.5 billion, has over the past two years made sports an area for expansion. In addition to the Nike franchise, Fox also received the franchise to operate Foot Locker stores in Israel. The stores sell sports shoes from major brands including Nike as well as Adidas, Fila and others. Over the past 30 months, Fox has opened 52 Foot Locker outlets in Israel.

As consumer habits shift from brick-and-mortar stores to online shopping, eroding revenues for fashion and shoe stores in Israel as well as globally, sports brands are not yet affected by this crisis . It was recently reported that Nike and Foot Locker will collaborate to open 50 major stores, which will showcase Nike technology.

Nike has a market capitalization of $132 billion and is one of the strongest sportswear brands in the world. The company has 392 stores in the United States and 790 stores in other countries, as well as a small number of flagship stores and online sales.

Published by Globes, Israel business news – – on September 2, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

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