Ch. 15 - Retailing

     Retailers ring up over $4 trillion in sales annually, about 40% of the gross domestic product. That's an overwhelming amount of money for any company. Retailing helps companies sell certain product(s), make profit in certain areas of the brand, generate popularity to certain consumers and show them what the company is about while selling most of their products on a daily basis. 


Adidas is a successful retailing company and they have developed chain stores all over the globe. One of Adidas main focuses are retailing even though they thrive in that area they plan to continue to push their success.  




 The picture above is of one of The Adidas Group dynamic retailing stores in Soho in lower Manhattan, New York City. Over the past five years, The Adidas Group has evolved into a dominant retailer, they have operated 2,270 stores for the Adidas and Reebok brands worldwide. For the future Adidas has simplified their chain stores, by clustering it into three different formats, by brand centers, core stores and factory outlets. Which falls into Adidas Group business plan for the future called "Route 2015". 

• Brand centers, such as large stores carrying the full range of each of our adidas sub-brands under one roof, are the bold and powerful statements about their strength, breadth and depth. This format will be kept to a limited number and only in exclusive locations.


• Core stores are the commercial engine for sales and profit across the Group’s retail organisation, upholding and accentuating each brand’s reputation. There will be adidas brand core stores, Originals core stores and Reebok core stores and, depending on their size, they will be categorised and clustered into A, B or C.


• Our factory outlets will facilitate the controlled sale of excess stock returned from our wholesale key and field accounts, franchise partners, e-commerce as well as own-retail stores. Through improved management of regional inventory and limited planned production, we want to improve and balance our product offering and therefore further increase our profitability. 

In 2011 The Adidas Group revenued 2,973 trillion dollars in Retailing worldwide which is amazing to any company but The Adidas Group is not satisfied they seek to bring up their retailing strategies by opening more stores and doing things to attain more consumer interest. Also they plan to focus on production on every single one of their retailing stores. Adidas as a franchise is a successful retailer and thrives to do more, they are efficient in level of service, product assortment, and price. Retailing is a huge part of the U.S. Economy, companies like Adidas keep it nice & dandy.