Adidas seals long-term partnership with Foot Locker
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Adidas, a global leader in the sporting goods industry, and Foot Locker, Inc. (NYSE: FL) (“Foot Locker”), the New York-based specialty athletic retailer, today announced a new and enhanced partnership built around product innovation, elevated experiences, and deeper consumer connectivity. This enhanced relationship will establish Foot Locker as the lead partner for adidas in the basketball category, accelerate energy and hype launches, as well as include the development and expansion of key franchises across women’s, kids, and apparel. Including all Foot Locker banners in North America, EMEA, and Asia-Pacific, the new strategic partnership will target over $2 billion in retail sales by 2025, nearly tripling levels from 2021. In 2022, adidas expects to generate incremental revenues of up to €100 million as a result of the new partnership.
“We are delighted to be deepening our partnership with Foot Locker as we continue to execute our ‘Own the Game’ strategy,” said adidas CEO Kasper Rorsted. “Consumers will be at the heart of this exciting collaboration and will be able to experience the adidas brand and its key product franchises, as well as new product innovations, at Foot Locker, stronger than ever before.”
“We are excited to build on our partnership with adidas as we continue our strategy to broaden our selection of footwear and apparel for the sport and sneaker communities,” said Richard A. Johnson, Chairman and Chief Executive Officer of Foot Locker, Inc. “This close partnership will enable us to bring consumers even more unique, pinnacle products from iconic brands, as well as accelerate our push into apparel, adding new dimension to our assortment and bringing more customers into our ecosystem.”
“We are excited to build on our partnership with adidas as we continue our strategy to broaden our selection of footwear and apparel for the sport and sneaker communities,”
Foot Locker will lead adidas’ basketball offering, led by Fear of God founder and designer Jerry Lorenzo, spanning the lifestyle and performance categories, and develop exclusive positions in both areas. In addition, the collaboration will focus on key Originals franchises including NMD, Superstar and Stan Smith, and on the adidas influencer partnership portfolio. It will also include a prominent role for Foot Locker in the launch of adidas’ new Sportswear product division targeting the lifestyle consumer.
To execute the new plan, adidas will provide Foot Locker with a dedicated team to deliver an elevated consumer experience both in stores and online to help create demand and elevate the marketplace. This will involve partnership on product development, exclusive Foot Locker positioning, increased product allocations, shared marketing spend, and an elevated premium presence across Foot Locker’s entire portfolio of banners with a special focus on key cities and communities that the companies jointly serve. Lastly, to provide consumers with a seamless consumer journey, on and offline, both partners will increase their digital focus and accelerate the rollout of the adidas partner program at Foot Locker.
Questions & Answers
Q.What is the financial target for retail sales through this partnership by 2025?
What is the financial target for retail sales through this partnership by 2025?
The new strategic partnership aims to achieve over $2 billion in retail sales by 2025. This figure represents nearly three times the levels seen in 2021 through their previous collaborations.
Q.Which specific product categories and franchises will be a focus of the enhanced partnership?
Which specific product categories and franchises will be a focus of the enhanced partnership?
Foot Locker will lead Adidas' basketball category, including lifestyle and performance. Key Originals franchises like NMD, Superstar, and Stan Smith, alongside the new Sportswear division, are also central to the collaboration.
Q.Which Adidas leader mentioned their company's strategy in relation to this new partnership?
Which Adidas leader mentioned their company's strategy in relation to this new partnership?
Adidas CEO Kasper Rorsted stated that the partnership helps execute their 'Own the Game' strategy. He highlighted that consumers will be at the heart of this collaboration, experiencing the brand more strongly.
Q.What incremental revenue does Adidas expect to gain in 2022 from this new agreement?
What incremental revenue does Adidas expect to gain in 2022 from this new agreement?
Adidas anticipates generating incremental revenues of up to €100 million in 2022 as a direct result of this new partnership. This revenue contributes to their broader financial goals.
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