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Meenakshi Verma Ambwani Adidas India, which had been restructuring its retail operations over the past few years, is getting set for the next phase of growth.
The company said it is focusing on an opportunistic growth strategy in 40 cities which includes the key metros besides tier-1 and tier-2 cities. It will also look at doubling the number of company-owned stores by next year.
The company on Tuesday announced a brand endorsement deal with sprinter Hima Das.
Dave Thomas, MD of Adidas India, said: “We are at a stage where we are opening a lot more stores than we are closing. In fact, we are hardly closing, but renovating stores with the latest fixtures. At the same time, we are focusing on opening bigger stores.”
Thomas further said the company looks to add 50-60 stores a year, which includes renovations. “Currently we have four company-owned stores which we hope to double to eight by next year,” he added. The company is also strengthening its online presence besides growing its footprint through the multi-brand stores.
At present, there are about 450 Adidas stores and 220 Reebok stores in the country. Over the years, Adidas India has reduced the number of franchise partners to about 50 in a bid to focus on profitable growth.
“Our strategy is to focus on 40 cities in the country. It will not just be about adding more stores but also about a more meaningful penetration in these cities with bigger stores for better engagement with customers,” Thomas said.
The company has also introduced new global formats in recent times such as launching its first stadium format store in Delhi earlier this year. “We are looking to have four-five stadium format stores in the country,” he said.
While a majority of the company’s products are made in India, it also looks at introducing global products, though it gets challenging due to import duties, said Thomas.
Asked about the performance of the company in 2017-18, Thomas said: “Last year, the focus was on transitioning through GST and keeping the ship moving forward. I believe this year onwards the expectations from the team are not just to grow but to grow fast with the right partners, engineering the right product at the right price.”
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