The Comeback of Nike: A Return to Its Roots

After a period of strategic missteps, Nike is on a path of soul-searching to redefine what it means to represent the iconic swoosh.

NIKE, the sportswear giant, has been at the forefront of the industry for decades. While still boasting an impressive market share of 27.4% in the footwear space, the sports titan is not what it once was. After a period of strategic missteps, Nike is on a path of soul-searching to redefine what it means to represent the iconic swoosh.

The fruition of this transformation came into effect in October of 2024, with the official announcement of Nike’s new CEO, Elliot Hill. Elliot is a 30-year veteran of Nike, who began as a sales intern for the company in 1988. His new leadership has sparked a series of new collaborations, product releases, and verticals.

In a recent interview, Elliot was asked, “Is Nike returning to its roots?” His response:

“No question about it.”

It seems we’re on the brink of kicking off a new era with what could be dubbed “The Return”.

But what drove Nike to hit the reset button in the first place?

The Overplayed E-Commerce Card

Rewind to early 2020: John Donahoe was appointed as Nike’s CEO. With a background at eBay, Donahoe championed a direct-to-consumer (DTC) approach, pivoting heavily towards e-commerce. His timing was impeccable. COVID-19 hit, and it accelerated digital adoption, sending Nike’s stock price soaring and app usage skyrocketing.

However, the aggressive shift came at a cost. Retail partnerships with major players like Macy’s and DSW were cut in 2021, leading to reduced shelf space. While e-commerce remains critical for Nike, the drastic pivot left gaps in traditional retail. Gaps that, when physical stores reopened after the pandemic, were filled by rising competitors. In essence, Nike’s pivot was too extreme.

To restore balance, Elliot Hill has made wholesale partnerships a priority once again. Since his appointment, Nike has re-signed deals with key retail partners. These renewed relationships indicate Nike’s recognition of the importance of hybrid retail, where both DTC and wholesale strategies complement each other rather than act as replacements.

Back to the Core: The Running Legacy

Nike’s origins trace back to a young Stanford graduate, Phil Knight, and his coach, Bill Bowerman, who were inspired to create a running shoe to serve track and field runners better. The humble stories of the pair selling shoes out of the trunk of their cars at running events lie in the DNA of Nike, and so does the sport of running.

Over the years, Nike expanded into nearly every major sport, consistently securing high-profile athlete endorsements. But in doing so, the brand lost sight of its original DNA. This opened the door for competitors like On and Asics, who have since gained market share in the running segment by focusing on performance-driven innovations.

To reassert itself in the running space, Nike has launched several high-performance running shoes in 2025, including the Vaporfly 4% and Pegasus 41. These models emphasize cutting-edge technology, lightweight materials, and enhanced durability—features aimed at both elite athletes and everyday runners.

Lessons from Nike’s Path

1. Brick-and-Mortar Isn’t Dead

While e-commerce is essential, physical retail remains a crucial touchpoint. Cutting ties with retailers created gaps that competitors eagerly filled. Nike’s course correction shows that a hybrid approach is key.

2. In-House Capability

Promoting from within, as Nike has done, ensures brand values are carried to the top. Elliot Hill’s return exemplifies the strength of internal talent development. This doesn’t mean Nike should never outsource expertise, but building strong in-house capabilities ensures long-term success and maintains brand integrity.

3. Authenticity Wins Every Time

Through the revival of product lines for its core sports, authenticity remains its most valuable asset. Recent moves reinforce Nike’s commitment to its origins. In an era of rapid brand expansion and consumers having more options than ever before, maintaining an authentic connection with core values is the differentiator.