Reebok 2011 Annual Report Download - page 69

adidas Group
2011 Annual Report
GROUP MANAGEMENT REPORT – OUR GROUP
65
2011
02.2 Global Sales Strategy Retail Strategy
– Concept stores are the commercial engine for sales and profit
across the Group’s retail organisation, upholding and accentuating
each brand’s reputation. There are adidas concept stores, Originals
concept stores and Reebok concept stores.
– Our factory outlets facilitate the controlled sale of excess stock
returned from our wholesale key and field accounts, franchise
partners, own-retail stores as well as eCommerce. The returned
stock is complemented with a portion of planned production which
creates a balanced product offering aimed at maximising profitability.
The global strategic framework and guidelines for our own-retail
activities are led by a central team, the “franchisor” of the Group. This
central team works closely with our market organisations to translate
the strategy into actions, and drive commercial performance of our
adidas and Reebok retail operations around the globe.
To become a world-class retailer, four strategic pillars have been
defined DIAGRAM 03 :
– Focus on the consumer
– Achieve operational excellence
– Exploit portfolio of brands
– Leverage our global presence and scale
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 up to 400 additional stores by 2015. The majority of these
store openings are planned in the emerging markets, particularly
Russia PICTURE 04 .
In addition, we will further roll out adidas Originals concept stores to
increase the number of distribution points for our lifestyle offering.
Another area of focus in 2012 will be the further expansion of the
store base of the adidas NEO label, the vertical business model for
the Group SEE GLOBAL BRANDS STRATEGY, P. 68 . Furthermore, we will test new
single-category stores, e.g. running-specific stores, as we develop our
store portfolio.
To execute on these pillars, the strategic priorities for Retail have
been broken down into the “Five P’s”: People, Product, Premises,
Processes and Profit.
04 Reebok
Concept Store in Moscow
People
The consumer and our employees are the primary reference points
in order to be successful. One of the cornerstones of Route 2015 is
greater “consumer focus”, an ambition Retail constantly strives
towards. Within our stores, we aim to interpret and adapt to changing
consumer demand, targeting a mix of new and loyal consumers,
whether it be sports-active, sports-inspired or casual consumers.
Therefore, we are building a commercially- and consumer-minded
Retail back-office and field workforce that thinks and “trades” like a
vertical retailer, and whose highest priority is to serve the consumer.
In 2010, we introduced SHINE, a Human Resources people strategy,
to leverage existing best practices and create a single global standard
for the field organisation. This ensures a set of broad and deep vertical
retail and commercial skills to develop our staff globally. During 2011,
the implementation and execution of SHINE throughout our markets
has progressed and we are more than halfway through completing
the global roll-out. In addition, we have also begun developing a
programme aimed at training our Retail back-office workforce in a
globally consistent manner, which will be introduced over the next 12
to 18 months.
03 Retail strategic pillars
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