ELIO KAYAKS: Pioneering Affordable High-Performance Kayaking Since 1979
Established in 1979 by visionary founder Elio Nogueira, ELIO KAYAKS stands at the forefront of high-
moreAmer Sports Boosts European Manufacturing with New Ski and Binding Factories in Central Europe
Amer Sports Accelerates European Manufacturing Expansion to Support Brand Growth and Meet Consumer D
moreFIDLOCK Innovates with Magnetic Attachments: Expanding Distribution Across Central Europe
FIDLOCK's innovative solutions have revolutionized the way accessories are attached in various appli
moreNew Era Targets Central European Expansion with Key Distributors Across the Region
New Era, a prominent headwear manufacturer known for its caps, beanies, and bucket hats, is settin
moreAirsoftZone Named Official Distributor of G&G Armament in Poland
G&G Armament has officially designated AirsoftZone as its new distributor in Poland. This upda
more
"Business
Partner search for the Sports industry in Central Europe"
You are here » Home Page
» CE Sports Business News
» Adidas restructures in Russia
Adidas restructures in Russia
2017-08-23 source ownAdidas, one of the largest sports brands in the world, has announced they will be closing around 160 stores in Russia and the CIS states. With revenue declining by over 10% in recent times, the brand and their CEO, Kasper Rorsted, believe that the market will continue to decline leading to more losses over the months and potentially years ahead.
According to Rorsted, embargoes from the Western states were causing a huge issue for the company. In Russia, their activity in the Crimean peninsula saw them and the whole CIS region lose purchasing power.
Low Oil Prices - In addition to this, crude oil remains as Russia’s most valuable export. However, this is at the lowest price for a long time and it’s affecting the company deeply. In both 2015 and 2016, Russia went though recessions. For Adidas, their extended position within the country is no longer worth the risk and 100 stores have already closed. After this, they plan to close 50-60 more before the end of 2017.
Although their extended presence has been reduced somewhat in the Russian market, this doesn’t spell the end of their influence completely because they still have a whopping 800 stores in the region. With sales causing a problem, there is still growth in different areas of the business and the product range is continually improving in both Saint Petersburg and Moscow.
Looking further afield, Adidas still sits as one of the biggest brands in the world. Between April and June, the company noted an improvement in sales by nearly 20%. In China, North America, and Western Europe, the company is still as strong as ever before with growth figures of 28%, 26%, and 19% respectively.