Adidas Dedicated to Brick and Mortar Locations Despite E-Commerce Boom | Financial Buzz

Adidas Dedicated to Brick and Mortar Locations Despite E-Commerce Boom

Adidas (OTCMKTS: ADDDF) CEO Kasper Rorsted, revealed that the retailer would keep investing in physical stores despite the increase in online shopping throughout the ongoing coronavirus pandemic.

“There’s no doubt that online has accelerated two to three years into the future … but I actually think if you asked most people, there’s a big social element about going out and shopping and just seeing and feeling the products again,” Rorsted said in an interview that aired Wednesday on “Closing Bell.”

“So, we’ll continue to build stores. We’ll announce that in March of next year, where we’re going to build and create a great store experience,” he added.

The sportswear company experienced a 51% jump in online sales during the third quarter, in comparison with the same time last year. According to Rorsted, throughout 2020, Adidas expects to have made USD4.9 Billion in online sales. 

Amid the surge of online sales, Rorsted is confident it will lead to a positive in-store shopping experience as well. “We think the stores are still here to stay, but coupled much closer to the online experience,” he said. “I think most people are really bored of sitting at home,” Rorsted added.

Recently, Adidas said it was going to “assess strategic alternatives” for Rebook, even evaluating a sale of the brand it purchased in 2006. However, according to Rorsted, the pandemic has nothing to do with its current evaluation of Reebok. He emphasized that the global situation had actually managed to improve the sporting goods industry as more people venture into recreational activities and adopt a more casual everyday fashion sense.  

“I think it’s going to be a very long way back before people want to go back to a suit and brown shoes. That trend was ongoing. There’s no doubt the pandemic has really accelerated that,” Rorsted said. “Working from home and having a much more casual lifestyle is actually playing very much back into a lot of the clothing we have,” he added.

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