Reebok 2009 Annual Report Download - page 24

20 TO OUR SHAREHOLDERS Interview with the CEO
HERBERT HAINER
Crisis always expedites the need for change and we have
done a lot this year to build a more efficient structure to drive
our business forward. Some measures were reactionary
to the crisis, to rein in costs, such as our hiring freeze in
all non-retail-related functions and business travel cuts.
Others, however, were more fundamental and already in
motion prior to the crisis. Since mid-2008, we have been
re-evaluating our Group structure to find new opportunities
to make our Group leaner, more efficient and stronger. The
result has been a move from a vertically integrated brand
structure into a function-related structure for the adidas and
Reebok brands, creating a Global Sales function responsible
for the commercial activities and a Global Brands function
responsible for the marketing activities of both brands.
In addition, the Global Sales organisation was split into
Wholesale and Retail, to cater more appropriately to the
different needs of these two distinctive business models.
This new structure follows two important principles: to foster
further alignment and strengthen brand management, while
at the same time ensuring coordinated and best practice
execution in the marketplace. These changes will start to
positively influence our brands and enhance our flexibility and
speed-to-market already from 2010.
HERBERT HAINER
Our strategic vision for Retail is to become one of the most proficient retailers
in the world by delivering healthy, sustainable growth with outstanding return
on investment. Prior to 2002, our retail operations were mainly limited to factory
outlets. Since then, the portion of own retail has grown substantially and today we
operate over 2,200 stores for the adidas and Reebok brands worldwide. We have
learnt a considerable amount from our experience in retail which has benefited
our entire business and been a meaningful profit contributor along the way.
However, we are by no means a leading retailer and, as a natural consequence of
its size and relevance to our future financial performance, we must put an even
greater focus on becoming a better and, to a certain extent, a more commercially
driven retailer.
That is why in 2009 we established a new leadership team for retail led
by a seasoned industry professional. This team is mandated to create global
retail guidelines that enable higher efficiency and a common framework to drive
long-term profitability for the adidas and Reebok retail operations around the
globe. In the short term this will require additional investment in people and
IT infrastructure as we strive to create greater retail competency in areas such as
product merchandising, real estate management and store processes. At the same
time we will also continue to selectively open and remodel retail stores to continue
growing our retail footprint, with about 150 planned new store openings and
around 200 store remodellings in 2010. With a more consolidated business model,
driving retail decision-making centrally rather than locally as in the past, we will
be in a stronger position to make the right investments and achieve operational
excellence for our retail activities around the world.
QUESTION
How have you used the crisis to make
the Group stronger for the future?
QUESTION
You mentioned you have set up
a dedicated Retail unit. What is
your strategic vision and what are
your short-term priorities for this
business?