Foot Locker to focus more on Adidas as Nike lowers presence
2022.05.06 01:07
(Reuters) – Foot Locker (NYSE:FL) Inc is aiming to triple Adidas (OTC:ADDYY)’s sales of sneakers and other items at its stores, as it promotes the products of the German sportswear giant to counter Nike Inc (NYSE:NKE)’s shrinking presence at the retail chain.
Nike, which is building its direct-to-consumer (DTC) business, will account for about 60% of total purchases for 2022, down from 70% in the past year and 75% in 2020, Foot Locker said in February.
The partnership will target over $2 billion in retail sales by 2025, nearly tripling from 2021 levels, with Adidas expecting to rake in up to 100 million euros ($105.41 million) more in revenue this year.
Foot Locker’s tie-up with Adidas will involve increased product allocations and shared marketing spend, the retailer said on Thursday.
“Foot Locker will lead Adidas’ basketball offering … the collaboration will focus on key Originals franchises including NMD, Superstar and Stan Smith,” according to a combined statement from the firms.
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