The German sportswear retailer said it will open 3,000 new stores in China by 2020, bringing its total in the country to roughly 12,000. Most of the stores are slated for smaller cities.
Adidas reported Thursday that group sales were up 16 percent to $18 million in fiscal 2015 and revenues were up 12 percent, helped in part by double-digit growth in Greater China.
Net sales in China were up 18.4% to more than 2 billion euros ($2.2 billion) in 2015, and the country is Adidas’ second-largest market globally. In January, Adidas said it wants to become the “best sports brand” in Greater China by 2020, and the slew of store openings are expected to help it get there.
“Our performance after the Chinese new year gave us optimism that Hong Kong is still a great market for sporting goods,” Adidas managing director Colin Currie said at a briefing in Shanghai, according to the South China Morning Post. “Like in China, we see more and more consumers, not only Hong Kong residents but also tourists running to buy our brand for sports participation, but also for the sports casual business.”
Kids stores will be an area of focus for Adidas as the easing of China’s one-child policy has contributed to greater attention on kids—and more money being spent on the things they need.
“We really believe this is going to be a tremendous growth segment for us,” the Post reported Currie as saying.
Adidas said in a statement back in January, “This plan will chart the path of the company’s continued growth as adidas seeks to meet the demands of China’s burgeoning middle class who are placing a higher emphasis on quality of life experiences and the needs of a nation with an ignited interest in sports.”