Adi­das to shut brick & mor­tar stores; push for dig­i­tal re­tail

Apparel Online - - Retail Current -

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.

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