Reebok 2010 Annual Report Download - page 89

Group Management Report – Our Group Global Sales Strategy Retail Strategy 85
Retail strategic pillars
02
Focus on the
consumer
Achieve
operational
excellence
Exploit portfolio
of brands Leverage global
presence and
scale
To become a top retailer
by delivering healthy, sustainable growth
with outstanding return on investment
In light of the increase in importance of
retail to the Group’s performance, a new
central leadership team was established
in 2009. This team is mandated to
develop a global strategic framework
and guidelines, represent retail store
and market needs on a global level, and
to act as a catalyst to drive commercial
performance for the adidas and Reebok
retail operations around the globe.
To become a world-class retailer,
four strategic pillars have been defined:
– Focus on the consumer
– Achieve operational excellence
– Exploit portfolio of brands
– Leverage our global presence and
scale see 02.
By focusing on these four strategic
pillars, we are confident to become one of
the top retailers in the world. In line with
our strategic business plan Route 2015,
we will further invest in our own-retail
activities and will open over 500 stores by
2015 across the existing store formats.
adidas Sport Performance
Core Store in Berlin
The majority of these store openings
are planned in the emerging markets,
particularly Russia. Another area of focus
will be the further roll-out of Originals
core stores to increase the number
of distribution points for our apparel
collection, and the implementation of
the new vertical business model for
the adidas NEO label see Global Brands
Strategy, p. 87. To execute on these pillars,
Retail has set its strategic priorities
around improving its delivery on the
“Five P’s”: People, Product, Premises,
Processes and Profit.
People
The consumer and our employees are
the primary reference points in order to
be successful. Retail constantly 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. To make sure that consumer
needs are being met, Retail will set
up organisational teams and recruit
store staff that are highly engaged and
commercially- and consumer-minded.
We want to build a retail back office and
field workforce that thinks and “trades”
like a vertical retailer and whose highest
priority is to serve the consumer. To
achieve this, in 2010, Retail introduced
a new human resources people strategy
called SHINE.
The aim is to leverage existing best
practices and create a single global
standard for the field organisation, to
ensure a high availability of broad and
deep vertical retail and commercial skills
to develop our staff globally.
Product
The key element of our product strategy
in Retail is to ensure that relevant
products are presented through the
Group’s various retail formats to match
the intended consumer profile. This
requires a product offering that is price-
competitive, simple to understand, easy
to find and, most importantly, available
at the right time and the right place.
To achieve this goal, we will leverage
the product assortments, concepts
and point-of-sale materials to match
real-time consumer trends. Furthermore,
the analysis of daily trading information
will provide the capability to display our
products in the correct proportionality
and thus increase our full-price sell-
through, especially on best sellers to
“make the big bigger”.
Premises
The start of a pleasant shopping
experience 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. In order to drive our sales
per square metre, Retail has set a clear
priority on optimising its real estate
management process.