Israeli Fox will open at a mall in Toronto a Niketown store in an investment of $ 12 million

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by Ifi Reporter Category:Financial Sep 2, 2019

The huge Niketown store that Fox will set up at the Yorkdale Mall in Toronto will span two floors of approximately 3,000 square feet.
At its establishment, a sum of about $ 12 million (about NIS 42 million) will be invested, with a substantial portion estimated to be funded by the mall.
The store is slated to open in November 2020, with the store's lease agreement for 10 years and includes an option to extend it for another 5 years. It is estimated that sales at such a store are expected to exceed $ 20 million per year.
Niketown is a concept of huge stores spread over several floors in the US and Europe and introduces alongside the Nike products also the integration of technologies in the company that purchases the company. In fact, it will be the largest Fox Group operation in the world and in Israel, and will join Nike's 7 stores That the group already operates in Canada through its subsidiary Retailors and another Fox operation in Canada - the grocery chain that operates 6 direct-operating stores in the country.
Yorkdale, the mall where the Toronto store will be set up, belongs to the Oxford-yielding real estate group, which is behind the establishment of the recently opened Hudson Yards Mall in New York. Fox's position is a significant expression of trust on the part of the group, as it is a flag store that has a unique meaning when it comes to Nike. The owners of the mall also point to its rising power.
The Harel Wiesel-controlled Fox Group owns a franchise to set up a Nike brand store in Israel, although it does not have any exclusivity. Over the past few years, it has acquired all Nike brand stores in the country, with the exception of outlet stores operated by various franchisees and opened additional stores. In total, Fox operates 22 Nike stores in Israel and employs about 376 people.
About two and a half years ago, the connection with Nike tightened, and Fox signed an agreement with Nike Canada, under which it was granted a license to establish a network of Nike stores in Canada for 7 years. The group's 2018 reports indicate that it has about 218 employees in this activity.
Fox Group, which trades at a market value of NIS 1.5 billion, has for the past two years marked the sport and expanded its hold. In addition to Nike's operations in Israel and Canada, Fox received a franchise to operate another sports network in Israel - Pot Locker, a multi-brand chain that markets sneakers of major brands, including Nike itself, Adidas, Fila and others. In about two and a half years Fox opened about 52 Pot Locker stores.
Against the backdrop of changes in consumer habits and the shift to online shopping that have eroded the revenue of fashion stores in Israel as well as the world, eyes are on the sports brands, which for the time being seem to be left out of the crisis. It was recently reported that Nike and Pot Locker themselves will be collaborating in opening 50 giant stores and embedding them with technologies Nike has acquired.
Nike Worldwide is trading at a market value of $ 132 billion and is considered one of the strongest sports brands in the world.

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