Reebok 2009 Annual Report Download - page 60

56 GROUP MANAGEMENT REPORT – OUR GROUP Global Sales Strategy
Retail: becoming one of the top
retailers in the world
Our strategic vision for Retail is to
become one of the top retailers in the
world by delivering healthy, sustain-
able growth with outstanding return on
investment. Over the past five years,
the adidas Group has evolved into a
significant retailer, operating more that
2,200 stores for the adidas and Reebok
brands worldwide. In light of the increase
in importance of retail to the Group’s
performance, a new retail leadership
team was established in 2009. This team
is mandated to create global retail guide-
lines that enable higher efficiency and a
common framework to drive long-term
profitability for the adidas and Reebok
retail operations around the globe.
To become a more successful
retailer, Retail has defined four strategic
pillars:
focus on the consumer,
achieve operational excellence,
exploit Retail’s portfolio of brands,
leverage the Group’s global presence
and scale.
To execute on these pillars, Retail has set
its strategic priorities around improving
its delivery on the five P’s of retail.
People
The consumer and our employees
are the primary reference points for
Retail’s business model. Retail con-
stantly strives to interpret and adapt to
consumer demand, targeting a mix of
new and loyal consumers, whether it be
sports-active, sports-inspired or casual
consumers. A focus area for develop-
ment in this respect is the creation of
loyalty programmes that are attractive
to the various consumer groups of our
brands. To make sure that consumer
needs are being met, Retail will set up
organisational teams and recruit store
staff that are passionate, knowledgeable
and whose highest priority is to serve
the consumer.
Products
The key element of Retail’s product
strategy is to ensure that relevant prod-
ucts are presented through the Group’s
various retail formats to match the
intended consumer profile. This requires
a product offering that needs to be price-
competitive, simple to understand, easy
to find and, most importantly, available
at the right time and at the right place.
To achieve this goal, Retail will leverage
the product assortments, concepts and
point-of-sale materials provided by
Global Brands in an effort to match real-
time consumer trends.
Premises
The start of a pleasant shopping experi-
ence is the store. It is the meeting point
between the consumer and the brands.
Therefore, it is of highest importance that
our retail environments are inspirational,
athletic, fun and interactive, while at
the same time being laid out clearly
and logically to make it easy to shop.
Another focus of the premises strategy
is related to the real estate manage-
ment process. To efficiently drive higher
sales per square metre, Retail is setting
up real estate teams who focus on two
main elements. Firstly, store location and
store size must fit to the local market.
Secondly, retail location must follow
a joint distribution roadmap aligning
distribution policy between Wholesale
and Retail. To this end, in 2009 we put a
cross-functional team in place to analyse
every country and every major city to
avoid business cannibalisation.
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02
RETAIL STRATEGIC PILLARS
Achieve operational excellence
Focus on consumers
Exploit portfolio of brands
Leverage global presence and scale
TO BECOME A
TOP RETAILER BY DELIVERING
HEALTHY, SUSTAINABLE GROWTH
WITH OUTSTANDING RETURN ON INVESTMENT