Adidas 2003 Annual Report Download - page 87

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83
SUCCESSFUL INTRODUCTION OF SPORT STYLE /// Sport
Style sales commenced in 2003 and were characterized by
strong sell-throughs at a very limited number of retail loca-
tions. Sales for the first year reached € 15 million.
adidas OWN RETAIL AS IMPORTANT TOP-LINE GROWTH
DRIVER /// An increasingly important part of brand adidas
revenues are own-retail activities. Own retail within adidas
consists of four components: concept stores, concession
corners in emerging markets, factory outlets and Internet
sales. At the end of 2003, adidas operated 173 concept stores
(2002: 161). These stores market Sport Performance and/or
Sport Heritage products directly to the consumer. Major
openings included Sport Performance stores in Marseille,
Lyon and Fukuoka as well as adidas Originals stores in Milan,
Miami and Munich. adidas concession corners, which provide
sales infrastructure in emerging markets, in particular
in Asia, number 178 (2002: 269) and declined as a result of
closures mainly in non-urban locations, particularly in the
Philippines. Factory outlets, which are utilized to optimize
clearance activities for brand adidas, currently number 174
(2002: 173). Internet sales for North America are available at
www.adidas.com. adidas own-retail activities made up 9%
of brand sales in 2003, up from 8% in the prior year. This
represents an increase of 21% in currency-neutral terms and
9% in euros to € 447 million in 2003 from € 410 million in
2002. This was driven both by comparable sales growth and
new store openings.
adidas NET SALES BY DIVISION
Sport Style <1%
Sport Heritage 17%
Sport Performance 83%
adidas OWN-RETAIL STORES
Internet <1%
Factory outlets 33%
Concession corners 34%
Concept stores 33%