Nike's CEO, Mark Parker, to depart in January

In a significant move for the sportswear giant, Nike has announced that John Donahoe, the current CEO of ServiceNow and chairman of PayPal, will be taking over as the company's CEO from Mark Parker, effective January 13, 2021.

Mark Parker, who has been at the helm of Nike for eight years, has been considered one of the strongest retail executives in recent memory. Under his leadership, Nike's share price rose by nine times. However, Parker will not be leaving the company entirely, as he will stay on as executive chairman, leading the board and working closely with Donahoe and the senior management team.

John Donahoe's appointment as CEO was driven by his digital skillset, with expertise in digital commerce, technology, global strategy, and leadership. His experience in digital retail makes him a good fit for a brand like Nike that is focused on growing into the digital and technological space. Donahoe led eBay and PayPal before his appointment as the new CEO of Nike, and he has been a board member of Nike's since 2014, but he has not held an executive position within the company.

Nike has been performing well over the past few years, but has faced corporate culture issues. In 2018, Trevor Edwards, then-brand president at Nike, stepped down due to an investigation into Nike's corporate culture. Under Armour's CEO Kevin Plank has also announced he would be passing the baton to COO Patrik Frisk.

In an effort to further solidify its digital presence, Nike has been focusing heavily on growing its digital business and technological capabilities. The retailer's mobile strategy includes selling through mobile and investing in technology to add at-home features like Nike Fit, which pairs shoppers with the right size for every shoe.

Nike's brick-and-mortar stores are taking a more app-based approach, with examples including House of Innovation flagships and the Nike Live store concept. These stores are designed to offer a unique, immersive shopping experience, blending physical and digital elements.

Donahoe's track record of product innovation and global brand-building is unmatched among apparel/footwear executives. With his leadership, Nike aims to continue its growth and success in the digital age.

Analysts at Telsey Advisory Group predicted a changeover for Mark Parker as CEO was likely to occur in the near-to-medium term. The change in leadership comes at a time when Nike is poised to make significant strides in the digital realm, with the potential for digital sales to make up the majority of the business in the future.

Patrik Frisk is set to take over as CEO at Under Armour, marking another shift in the leadership of major apparel and footwear companies. As Nike moves forward with Donahoe at the helm, it remains to be seen how the company will continue to innovate and grow in the competitive retail landscape.