Reebok 2012 Annual Report Download - page 97

adidas Group
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2012 Annual Report
Group Management Report – Our Group
75
2012
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02.2
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Global Sales Strategy
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Retail Strategy
In addition, we opened ten pilot NEO stores in Germany in 2012 and
continue to monitor their progress whilst considering a larger-scale
roll-out
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PICTURE 02. Furthermore, we will test a new Reebok store
concept with 20 stores planned across the USA and the UK in the next
two years
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PICTURE 03.
02
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adidas
NEO store in Oberhausen, Germany
03
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Reebok
Fit Hub store in New York City
The global strategic framework and guidelines for our own-retail activ-
ities are led by a central team. This 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
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DIAGRAM 04:
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Focus on the consumer.
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Achieve operational excellence.
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Exploit portfolio of brands.
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Leverage our global presence and scale.
In line with our strategic business plan Route 2015, we will further invest
in our own-retail activities and will open up to 300 additional stores by
2015. The majority of these store openings are planned in the emerging
markets, particularly Russia.
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.
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 2012, we continued to implement SHINE, the adidas Group retail
field people management framework which enables Retail HR and
line managers to recruit, develop, evaluate and manage retail talent.
We also continued to evolve SHINE by incorporating additional people
management tools, such as the SHINE Secure System. This platform
fully integrates the production, translation, hosting and secure distri-
bution of the framework to all active HR and retail line managers. At the
same time, it provides full transparency on the entire process as well as
on market implementation and user access.
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 in the right place.
We continue to drive a number of strategic initiatives in areas such as
product assortment, range overlap and replenishment to achieve this
goal. We launched a global “merchandising manual” in 2012, which gives
guidance to our merchandising teams around the world on how to best
buy and merchandise for our retail business. In 2013, we will focus on
further training and embedding these core merchandising principles
within our employees and our business.