Reebok 2012 Annual Report Download - page 98

adidas Group
/
2012 Annual Report
Group Management Report – Our Group
76
2012
/
02.2
/
Global Sales Strategy
/
Retail Strategy
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
the 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.
Dedicated real-estate teams have been set up, who make sure that:
/
Store location and store size fit to the local market.
/
The store is designed to maximise sales per square metre.
/
Market share growth and increased market presence are in line with
our Integrated Distribution Roadmap, which has been developed to
evaluate real-estate locations in the top 100 cities globally, based on
various factors such as consumer profile and competitive landscape.
We have also developed a new store design and layout for factory outlets
which offers an improved consumer journey and showcases products
in a more inspirational and easy-to-shop manner. The first pilot stores
were remodelled according to the new design in 2012 and we will
perform additional transformations in 2013.
Processes
To enable the adidas Group to become one of the top retailers in the
world, it is essential to have systems and processes in place that fit to
a retail business model. Accordingly, we continue to make significant
investments in retail systems, namely ERP, merchandising and POS
systems. Our largest undertaking has been the roll-out of the global
retail systems to Russia, which was largely completed at the end of 2012.
We also continue to drive supply chain enhancements through the adidas
NEO label, which requires a shift from a sell-in push model to a more
sell-through-driven pull model. This is necessary to increase in-season
flexibility, be more responsive to changing trends and, ultimately,
compete in fast-fashion retailing. In the long term, leveraging best
practices from applying a pull model will result in economies of scale for
the activities of the entire Group.
Our in-store operations are constantly being refined with the objective
of achieving flawless execution, operational excellence and stores that
look good visually. We will take a significant step forward in 2013 with
further harmonisation of store operation standards and the definition
of a common “operating rhythm” for our portfolio of stores. This
initiative will not only help improve how each store runs its operations,
it will also drive standardisation as we continually look for ways to
leverage our global presence and scale. Furthermore, an updated retail
communications portal will be introduced in 2013 which will improve
the communication flow between the retail back office and stores.
Profit
Increasing the commerciality and profitability of the Group’s existing
retail assets is the primary focus of all Retail teams, particularly in light
of the pivotal role Retail has in achieving the adidas Group’s Route 2015
targets. We have defined operational KPIs benchmarked to best-in-
class retailers in order to measure existing business performance and
evaluate potential investments. Stores not achieving their required KPIs
will continue to be closed down. New stores must be supported by a
business plan that meets predefined criteria. Each new store opening
and remodelling is closely monitored to ensure that the targeted profit-
ability and return on investment is accomplished. In addition, we will
continue to implement our people, product, premises and processes
strategies in order to maximise profit.
04
/
Retail strategic pillars
To become a top retailer by delivering healthy, sustainable growth
with outstanding return on investment
Focus on the consumer Achieve operational excellence Exploit portfolio of brands Leverage global presence
and scale