Nike made the heartbreaking decision to permanently close its Portland Factory Store. The sneaker giant had a "temporary" shutdown prompted by a massive spike in theft-related issues.

The iconic Nike store, a fixture in the Portland community since it opened in 1984, ceased operations in October 2022. The abrupt closure was accompanied by a cryptic message on the company's website, simply stating "Closed for the next 7 days." The store never resumed business.

Reports from local outlet KGW-TV at the time of closure detailed brazen thefts, with culprits making off with armloads of Nike merchandise, with no consequences.

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Portland Factory Store to be permanent

In February, Nike officials sent a letter to Portland Mayor Ted Wheeler, hoping to reopen the store.

Nike said the store was closed because of "deteriorating public safety conditions and rapid escalation in retail theft." Nike even offered to employ off-duty police officers for additional security, with the company willing to foot the bill.

On Friday morning during a Zoom meeting, Nike announced the permanent closure.

Mayor Ted Wheeler expressed his disappointment in a statement issued on Friday, September 8. He mentioned that his team and city staff had worked diligently for almost a year, striving to find innovative solutions to address Nike's safety concerns.

However, due to the staffing shortages faced by the Portland Police Bureau, the city couldn't provide Nike, or any other private business, with dedicated off-duty officers.

The abrupt departure of Nike has left the Soul District Business Association (SDBA) reeling, describing it as a "major economic blow." John Washington, Director of SDBA, expressed his sentiments, remarking that the news landed like a "lead balloon."

In a news release, the SDBA reiterated that the community had been dealt a severe economic setback following Nike's confirmation of its departure from the store at 2650 N.E. Martin Luther King Jr. Blvd. 

Nike acknowledged these developments in a statement to The Oregonian/OregonLive, claiming that they were "reimagining Nike's retail space" and contemplating potential future locations as part of a broader community revitalization plan.

Washington reported that local businesses had experienced declining foot traffic and deteriorating financial conditions as a result of the store's prolonged closure. 

Iconic store

Washington lamented the decision, stating, “Why close down a flagship store that has supported Black Portland for over 40 years? It was an economic driver in this area, and we should be looking at the long-term impact of that closure."

The Nike Community Store had been a cornerstone of its Portland neighborhood since its grand opening in June 1984, anchoring the core of the city's Black population.

The store's establishment on Martin Luther King Jr. Boulevard, originally named Union Avenue, had been a collaborative effort between Portland civil rights and education activist Ron Herndon and the Black United Front, working in tandem with Nike in the 1980s.

Rising crime issue

Nike is not alone in experiencing a big increase in retail crime. This is not just happening in Portland, hundreds of retailers that sell big-brand products are closing throughout the country.

According to a National Retail Federation report “Organized Retail Crime, An Assessment of a Persistent and Growing Threat” a majority of retailers surveyed between 2020 and 2022 reported annual increases in organized retail crime activity at their stores.

The report claims that a national spike in crime cost US retailers $100 billion.

In addition to a major surge in theft, retailers across the U.S. are struggling to regain the same levels of in-store traffic they enjoyed pre-pandemic.