Adidas AG and Foot Locker have expanded their partnership.
In a joint announcement released by the Herzogenaurach, Germany-based athletic brand and the U.S.-headquartered retail chain, the companies attributed product innovation, elevated experiences and deeper consumer connectivity as the impetus for the enhanced partnership. According to the new agreement betweenthe two companies Foot Locker will be the lead partner for Adidas in basketball. It will also include “hype launches” and the development of key franchises in women’s and children’s, as well as apparel among other initiatives.
Spanning all Foot Locker banners in North America as well as Europe, the Middle East and Africa and the Asia Pacific regions, the strategic partnership aims to reach more than $2 billion in retail sales by 2025, nearly tripling last year’s figures. This year, Adidas expects to generate up to €100 million, due to the new partnership.
Last year, the global market for athletic apparel generated about $193 billion in revenue. These revenues are expected to grow to $270 billion by 2028, according to Statista.
Kasper Rorsted, CEO, Adidas, says, the brand is strengthening the partnership as it continues to execute its ‘Own the Game’ strategy.” With 61,000 employees globally, Adidas generated €21.2 billion in sales last year.
Richard Johnson, Chairman and CEO, Foot Locker highlights, how the “close partnership” will result in the retailer bringing “consumers even more unique, pinnacle products from iconic brands,” while accelerating its push into apparel and attracting more customers.” With about 2,900 stores in 28 countries, Foot Locker Inc.’s portfolio includes Foot Locker, Kids Foot Locker, Champs Sports, Eastbay, Atmos, WSS and Sidestep.
Jerry Lorenzo, Founder and Designer, Fear of God will lead the Adidas basketball range at Foot Locker. Lifestyle and performance products will be in the mix including exclusive designs, as well as key Originals franchises like NMD, Superstar and Stan Smith. Foot Locker will also have an integral role in the launch of Adidas’ new sportswear product division that is geared more for lifestyle shoppers than hard-core athletic ones.
