Adidas plans to close 160 stores in Russia by end of 2017

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German sports retailer Adidas has closed more than 100 of its stores in Russia since the beginning of 2017. As reported by RBC referencing to the statement of the management, until the end of the year the company plans to close another 50.

“We expect that the Russian market will continue to decline after four years of sanctions, and because of its dependence on oil prices,” said Adidas CEO Kasper Rorsted during a teleconference with investors in the first half of 2017.

The company’s CFO, Harm Ohlmeyer, noted that Russia remains the only region with declining revenues. As a result of the second quarter of 2017, Adidas Group’s revenues in Russia and the ex-USSR area declined by 11%, to €181 million. In the first half of this year, this indicator decreased by 10.3% year-on-year, to €341 million.

According to Rorsted and Ohlmeyer, Russia accounts for 3% of the company’s total sales, so the results of the Russian division have a minor impact on the global performance of the group.

2017 is not the first year Adidas is cutting the retail network in Russia. According to the consulting agency Fashion Consulting Group, in 2015 Adidas closed more than 160 stores in Russia. Previously, the group management decided to significantly reduce the plan for opening new stores in 2014 “because of the increased risks of changing consumer sentiment and spending in the region,” recalls RBC.

Source: shopolog.ru