Adidas and New York-based retailer Foot Locker have announced a new and enhanced partnership “built around product innovation, elevated experiences and deeper consumer connectivity,” as the German company states in a press release.
The announcement comes on the back of Foot Locker’s sales figures released in March 2022, which reflected Nike’s gradual downscaling of the wholesale business in favor of DTC distribution channels. Nike’s DTC sales have increased to 40 percent and are expected to expand further. The Nike brand accounted for 70 percent of sales in recent years at Foot Locker, falling to 60 percent in 2021. The company’s stock plunged more than 30 percent after it announced expected 2022 numbers that projected an 8 percent to 10 percent decline in sales for Foot Locker.
As Adidas informs, the enhanced relationship will establish Foot Locker as the lead partner for Adidas in the basketball category, accelerate limited-edition drops, and aim to develop key franchises across women’s, kids, and apparel. The collaboration will focus on key Adidas Originals franchises and the Adidas influencer partnership portfolio. The retailer will also play a prominent role in launching Adidas’ new sportswear product division targeting the lifestyle consumer that is in the pipeline.
Including all Foot Locker banners in North America, EMEA, and Asia-Pacific, the new strategic partnership will target over $2 billion in retail sales by 2025, nearly tripling last year’s levels. In 2022, Adidas expects incremental revenues of up to €100 million as a result of the new partnership with Foot Locker.
As a fundamental brick to build up the new partnership, Adidas provides Foot Locker with a dedicated support team to enhance consumer experience both in the company’s stores and online to help create demand and elevate the marketplace. Besides exclusive product development and shared marketing investments, an elevated presence across Foot Locker’s portfolio is planned, focusing on key cities. Both partners plan to increase their digital focus and accelerate the rollout of the Adidas partner program at Foot Locker.
