Adidas on expansion spree, to add 160 new stores in 2008
on June 9th, 2008 at 12:35 pmNEW DELHI: German sportswear and apparel major Adidas is going for a major expansion across India in 2008, which will involve setting up of around 160 new stores and setting footprints in 140 cities.
“We are identifying properties in various cities and will set up 150-160 stores this year which is much more than 2007 figures. By 2008 end, we will reach the figure of 450 franchise stores by the end of 2008,” Adidas India Managing Director Andreas Glenner said.
When the planned expansion completes, Adidas would have presence in 140 cities as against 119 cities currently, he added.
The company is expanding not only in the metros and Tier I cities but going to Tier II towns also.
“It is important for us to expand to smaller cities as the revenue contribution from metros and Tier I cities are equal to that coming from lower Tier II towns,” Glenner said.
The company, which has also launched its ‘Adidas Originals’, the premium range of products, is also planning to add more such stores in select cities.
“Currently, there are two ‘Originals’ stores, one in Delhi and the other in Chandigarh. By mid-2009 we plan to have eight such stores,” he added.
Commenting on the rising rentals, Glenner said while it would not stop the company expanding but “had the rents been more reasonable we would have had more stores”.
“Retail rentals are unrealistically high and a big challenge. However, it will not slow down our growth,” he said.
