Adidas to shut brick & mortar stores; push for digital retail
After reporting a massive 57 per cent increase in its online sales at 1.5 billion Euros in 2017, Germanybased sportswear company
Adidas is considering to sell more products through e-stores. This was revealed by its Chief Executive Kasper Rorsted in an interview. “The retailer will contract the number of its store slightly and maintain better quality stores,” Rorsted was quoted as saying by Financial Times. Even though the sports company is shrinking its physical footprint, it will open or refashion stores in key locations to enhance the customer’s shopping experience. The retailer, which currently operates 2,500 stores globally and 13,000 additional mono-branded franchise stores, is planning to double its online sales from 1.6 billion Euros last year to 4 billion Euros (US $ 4.91 billion) by 2020. The group is hiring 200 staff with a digital focus who can help the company to achieve the target.
A smartphone app was earlier introduced by Adidas to promote personalisation across its online community, it will now be launched in France, Spain and Canada this year; It is currently available in the US, the UK and Germany. The CEO even termed Adidas’ website ‘the most important store we have in the world’. However, it remains to be seen how Adidas maintains its growth rate to compete against the likes of Nike and Under Armour, which have been rapidly eating into Adidas’ sports market in the US.