Another target is to expand sales through the group's own concept stores at double-digit rates per year. The company runs about 2,900 own stores and wants to add 500 to 600 more stores by 2020, including specialist stores focusing on basketball, running or women, for example.
By reducing the number of store formats, among other measures, retail productivity (in net sales per square meter) is to increase by an average of 7 percent per year, compared with an average of 5 percent per year in the last five years, excluding Russia. The openings should start with about 100 Homecourt stores, 30 smaller Neighbourhood stores and 170 Fit Hubs this year.
The group also aims to add about 3,000 retail franchises to its current tally of 11,000 stores. While current franchises are mostly located in markets such as China and South Korea, Adidas wants to expand them in Latin America, Japan and Western Europe. The company's online sales are to quadruple and reach about €2 billion by the end of the five-year period.
On the wholesale side, the Adidas group wants to form tighter partnerships with 20 key global retailers to help double the managed retail space at the wholesale level – meaning an extra 300,000 square meters of shop-in-shops and other modules.
Overall, the company wants to expand controlled retail space to about 60 percent of its sales by 2020, compared with 50 percent in 2014 and 37 percent in 2010. Adidas is setting aside about €1.5 billion for investments in retail space and the development of its omni-channel approach.
