New Delhi: German sportswear and apparel company Adidas will go in for major expansion across India in 2008, by setting up around 160 new stores and footprints in 140 cities.
“We are identifying properties in various cities and will commission 150-160 stores this year which is by far more than the 2007 figures. By 2008 end, we aim to reach the figure of 450 franchise stores,” Adidas India managing director Andreas Glenner told PTI.
When the planned expansion gets completed, Adidas would have presence in 140 cities as against 119 cities currently, he added. The company will expanding in metros and in Tier I and Tier II cities.
“It is important for us to expand to smaller cities as the revenue contribution from metros and Tier I cities equal that coming from lower Tier II towns,” Glenner said.
The company, which launched ‘Adidas Originals´, a premium range of products, is planning to add more such stores in select cities. “Currently, there are two ‘Originals´ stores, in Delhi and Chandigarh and by mid-2009 they hope to have eight such stores.
Commenting on rising rentals, Glenner said while it would not stop the company expanding, “had rents been more reasonable we would have had more stores”. “Retail rentals are unrealistically high and a big challenge. However, it will not slow down our growth,” he said.