Foot Locker focuses more on Adidas as Nike reduces its presence

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People line up during Black Friday sales outside a Foot Locker shoe store, as the spread of the coronavirus disease (COVID-19) continues, in Zurich, Switzerland November 27, 2020. REUTERS/Arnd Wiegmann

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May 5 (Reuters) – Foot Locker Inc (FL.N) aims to triple sales of sneakers and other Adidas items (ADSGn.DE) in its stores, as it promotes the German giant’s products sportswear to counter Nike Inc.’s diminishing presence in the distribution chain.

Nike (NKE.N), which is growing its direct-to-consumer (DTC) business, will account for about 60% of total purchases for 2022, up from 70% last year and 75% in 2020, Foot Locker said. in February.

The partnership will target more than $2 billion in retail sales by 2025, nearly tripling 2021 levels, with Adidas expecting to raise up to 100 million euros ($105.41 million) from additional income this year.

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Foot Locker’s combination with Adidas will involve increased product allocations and shared marketing expenses, the retailer said Thursday.

“Foot Locker will lead Adidas’ basketball offering…the collaboration will focus on key Originals franchises including NMD, Superstar and Stan Smith,” according to a combined statement from the companies.

($1 = 0.9487 euros)

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Reporting by Praveen Paramasivam in Bengaluru; Editing by Anil D’Silva

Our standards: The Thomson Reuters Trust Principles.

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