Adidas details plan to ‘reinvent’ its retail strategy
Adidas has detailed its plan to ‘reinvent’ its retail marketing across all its brands as part of a wider push to build momentum around its own branded stores worldwide.
It will introduce a new sport performance “Home Court” area to key stores in January to showcase the technology behind products such as its Boost running range. The company has been highlighting the innovation behind its products in football and athletics campaigns this year in an attempt to differentiate itself from rival brands.
Simultaneously, Adidas Originals stores will be launched in 31 cities worldwide including New York City, Shanghai, Paris and Moscow. Each store will push the lifestyle brand’s “Neighborhood” collection featuring apparel from urban designers such as Kazuki Kuraishi.
Adidas is also planning to expand the retail footprint of its Adidas Neo children’s label following its launch across Germany in 2012. Five additional stores will be added across the country from 2014 onwards alongside six in Poland and five in the Czech Republic.
Elsewhere, the company is accelerating the pace of its Reebok Fit Hub retail stores to capitalise on renewed demand for the brand with sales expected to reach €2bn (£1.6bn) in 2015. The stores debuted in the UK this September with Adidas claiming at the time it signaled an “aggressive” push to increase Reebok’s share of the fitness category.
The sportswear maker is confident the upcoming developments will set it up for “high single digit” growth in 2014 after seeing sales plummet in key European markets over the last 12 months. Its retail announcement comes as the group today (3 December) group reiterated previous assurances that it remained on course to hit sales of €17bn (£14.1) in 2015. The target has been questioned in recent weeks after the brand reported a 4.3 per cent year-on-year drop in sales to €11bn (£9.1bn) in the first nine months of 2013.
Herbert Hainer, Adidas chief executive, says the growth will be achieved through its Boost brand and upcoming activity around the World Cup.
It is understood that Adidas believes it has become too reliant on Barcelona FCB footballer Lionel Messi to broaden its reach at the expense of the brand itself. It is placing a greater focus on expanding its retail estate in the hopes of crafting a brand experience it can scale.
