Chief Executive of Adidas says they expect to close down many stores in the coming years as part of a shift towards selling more goods online.
Adidas expects to close down stores as part of a shift towards selling more goods online.
In an interview with the Financial Times, Kasper Rorsted said "over time, we will have fewer stores but they will be better," adding that over the coming year the number of Adidas stores was expected to contract slightly.
"Our website is the most important store we have in the world."
Adidas, which wants to double its e-commerce sales to €4 billion ($4.91 billion) by 2020 from the €1.6 billion it hit last year, with 2,500 stores globally and 13,000 additional mono-branded franchise stores, the Financial Times have said.
The recent shift to online shopping isn’t working in the interest of retail brand Zara, as its exposes its issues with the fit, product quality and online service, according to Credit Suisse analyst Simon Irwin.
Comments about Zara products “are poor and declining” on consumer-review websites Trustpilot and Sitejabber, the analyst wrote in a note previewing owner Inditex SA’s first-half results on Sept. 12.
“We believe the ‘treasure trove’ nature of a Zara shop is still a better experience off-line,” Irwin wrote. While online is driving like-for-like sales growth, that can have a negative impact on gross margin, he also said.
The broker estimates that the Web will represent about 10 percent of Inditex’s sales this year, up from 2.4 percent in 2013. It also expects 2018 to be the sixth consecutive year of Ebit margin decline.
Inditex shares had their worst week in seven years last week, falling 8.7 percent after Morgan Stanley published a scathing report saying the retailer has gone from great to good.
Credit Suisse lowered its price target to 24 euros from 25 euros and maintained its underperform recommendation.
Representative from Macy's said last week that there are plans in place to close 125 of its stores over the next couple of years and cut minimum 2,000 corporate jobs as a cost-savings effort.
The company said it would close stores in lower-tier malls, and explore new avenues, as it looks to tackle plummeting mall traffic.
The chain, which has been struggling to boost store traffic as consumers opt for online shopping in the United States, has closed more than 100 stores since 2015 and cut thousands of jobs.
"We will focus our resources on the healthy parts of our business, directly address the unhealthy parts of the business and explore new revenue streams," Chief Executive Jeff Gennette said.
The to-be-closed 125 stores currently account for about $1.4 billion in annual sales, the company said.
It also said it expects annual gross cost savings of $1.5 billion by 2022, with $600 million expected in 2020.
It forecast full-year net sales to be between $23.6 billion and $23.9 billion, below analysts' average estimate of $24.36 billion, according to IBES data from Refinitiv.
The first campaign video got launched on 7th Jan during the Golden Globes. We love the tag line " Everyone deserves a comeback " which is a direct play at Winona's career and the L'Oreal Paris's Elvive line of products.