Nike is set to close its massive SoHo store at 529 Broadway in January after the building was sold to an affiliate of Ikea for $213 million, according to property records.
But it’s not the end of the Swoosh in the neighborhood. The company confirmed it will “look at other options in the area and maintain its presence in SoHo.”
In NYC, Nike also operates its House of Innovation flagship at 650 Fifth Avenue, as well as stores in Battery Park in lower Manhattan, Harlem, North Bronx, East New York, Williamsburg and at Atlantic Center in Brooklyn.
Originally opened in 2016, Nike SoHo occupies five-stories and 55,000-square-foot of the building, which was originally the Prescott House Hotel, built in 1853. The store served as a multisport emporium with spaces devoted to running, basketball and soccer, which Nike dubbed “the Future of Sport Retail” at the time.
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This sale of the building and the store closure comes at the same time that Nike is seeing a turnaround in its earnings. Late last month, chief executive officer Elliott Hill said in a statement that Nike in the first quarter “drove progress through its Win Now” actions in priority areas of North America, wholesale and running.”
The CEO added that while “we’re getting wins under our belt, we still have work ahead to get all sports, geographies and channels on a similar path as we manage a dynamic operating environment.” Total revenues for Nike in Q1 rose 1.1 percent to $11.72 billion from $11.59 billion the same time last year.
As for what’s next for the space, Ingka Investments, the investment arm of Ingka Group (which owns the majority of Ikea stores worldwide), will operate the entire building, comprising of five and half floors plus a lower level, totaling 53,000-square-feet.
An Ikea store will occupy the first and second floors, with the lower level used for storage and other back-office facilities, covering approximately 25,000-square-feet. The upper four floors will be renovated for office use.
“We are boldly reimagining how we reach and serve our customers, and this new store in the heart of New York City is another step for Ikea to be closer to the many,” Javier Quiñones, chief executive officer and chief sustainability officer of Ikea U.S., said in a statement. “As we celebrate 40 years in the U.S., this investment on one of New York’s busiest retail corners underscores our commitment to accessibility and meeting customers where they are.”
