Adidas details ambitions in Western Europe
On Thursday, March 26, in a presentation to investors regarding Adidas’ new strategic plan for 2020, Gil Steyaert detailed the sports company’s ambitions in Western Europe. "The United States remains the largest global sports market, but Europe is 'Adidas’s home'," began Gil Steyaert, Adidas' managing director for Western Europe, appointed to the position fifteen months ago.
Mirroring its overall strategy in Western Europe, the German group will primarily invest in five cities: Paris, London, Barcelona, Berlin and Milan. In these European cities, Adidas is notably aiming to strengthen its network of flagship stores. "In each of these cities, we have one or two flagship stores. We recently opened one in Milan; renovations on the one in Paris will be completed by the end of the year; and we have plans for Oxford Street in London," said Steyaert.
Over the next five years, Adidas wants to generate 30% of sales (against 20% at present) with its retail network. In particular, the group would like to quadruple its online sales and double the number of its franchise stores. "We’d like to develop our franchises in cities and areas that we don't know very well, and where investment can be risky," said Steyaert.
In wholesale, Adidas wants to have a presence among the key accounts, pure players, fashion networks and sports specialists. This is in accordance with what he has dubbed the "Win with winners" strategy. In total, throughout the current year, the group is expected to increase investment for the entirety of its retail network in Western Europe by 40 million euros.
Finally, Adidas has identified key categories for the region: soccer, boosted by product launches; Adidas Originals, which highlights iconic products such as the Stan Smith; running, a segment in which "Adidas is still an market competitor," according to Gil Steyaert; and training.
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