Foot Locker bets on new partnership with Adidas as Nike cuts product at retailer
Adidas is extending its partnership with Foot Locker – months after the retailer said it would have fewer Nike products in the future.
The German brand said Thursday, a day before its results, that its enhanced relationship with the footwear retailer is built around “product innovation, elevated experiences and deeper consumer connectivity.”
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including all Foot locker banners in North America, EMEA and Asia-Pacific, the new strategic partnership will target more than $2 billion in retail sales by 2025, nearly triple levels from 2021, Adidas said. . In 2022, Adidas expects to generate additional revenue of up to €100 million (approximately $105 million at current exchange rates) from this new partnership.
Adidas also said the enhanced relationship will establish Foot Locker as a premier brand partner in the basketball category, which is led by the founder and designer of Fear of God. jerry lorenzo, spanning lifestyle and performance categories. Additionally, the collaboration between the two powerhouses will focus on key Originals franchises including NMD, Superstar and Stan Smith, and Adidas’ portfolio of influencer partnerships. It will also include a lead role for Foot Locker in launching Adidas’ new Sportswear product division targeting the lifestyle consumer.
The partnership will also accelerate hype launches, as well as include the development and expansion of key women’s, children’s and apparel franchises.
The move comes after Foot Locker makes waves in February, when it announced that the amount of Nike products in its stores would be significantly lower. Following Nike‘s “accelerated strategic shift to DTC”, Foot Locker said on the call to announce its fourth quarter results that no vendor in its stores would account for more than 55% of total vendor spend from in the fourth quarter of 2022, compared to 65% previously. Last year. The retailer also posted a tough outlook for 2022, saying it expects sales to fall between 4% and 6% and comparable store sales to drop 8% to 10%.
To execute the new plan, Adidas said it would provide Foot Locker with a dedicated team to deliver an “enhanced customer experience” both in stores and online. This will involve partnership on product development, exclusive Foot Locker positioning, increased product allocations, shared marketing spend and a high premium presence across Foot Locker’s entire banner portfolio, with a particular focus on the key cities and communities that the companies jointly serve.
“We are excited to deepen our partnership with Foot Locker as we continue to execute on our ‘Own the Game’ strategy,” Adidas CEO Kasper Rorsted said in a statement. “Consumers will be at the heart of this exciting collaboration and will be able to experience the adidas brand and its key product franchises, as well as new product innovations, at Foot Locker, stronger than ever.”
“We are delighted to strengthen our partnership with adidas as we continue our strategy to expand our selection of footwear and apparel for the athletic and sneaker communities,” added Richard A. Johnson, President and CEO of Foot Locker. , Inc. This partnership will allow us to offer consumers even more unique and premium products from iconic brands, as well as accelerate our push into apparel, adding a new dimension to our assortment and attracting more customers in our ecosystem.
Foot Locker is also deepening his relationship with Reebok, owned by Authentic Brands Group, which was owned by Adidas until this year. The retailer also saw strong demand for Puma, New Balance, Timberland, Ugg and Crocs.
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