Adidas plans to close 200 stores in Russia
The largest sports retailer Adidas plans to close about 200 stores in Russia by the end of this year. The reason for this decision was difficult market conditions.
The CEO of Adidas, Kasper Rorsted, said at a teleconference held on November 9 that the company's business is going well this quarter. The combined sales of the brands Adidas and Reebok increased in all regions except Russia and the CIS.
Earlier, Adidas reported an 8.7% increase in sales for the 3rd quarter to 5.68 billion euros. According to Kasper Rorsted, The company's strategic growth areas of North America, Greater China and e-commerce were again the main drivers of strong performance in the third quarter.
Sales of Adidas in Russia in the 3rd quarter fell by about 11% to 173 million euros, or 17% at constant exchange rates.
For the first time, the company's management decided to significantly reduce the plan to open new stores back in 2014, linking this with increased risks and changes in consumer sentiment. In 2015, the company closed about 200 unprofitable stores, while opening 100 new ones. Another 80 stores were closed in 2016.