Adidas Group China is “continuing its aggressive push into Chinese
lower-tier cities with the planned opening of up to 600 stores,”
according to Li Woke of CHINA DAILY. Adidas Group China Managing Dir
Colin Currie said, "We plan to open 500 to 600 stores in lower-tier
cities by the end of the year." Currie said that the company “plans to
open new stores in at least 300 to 350 cities where it does not have
outlets now but where local competitors are present.” He added that the
store openings this year “will focus on the western and northwestern
parts of China.” The move follows the company's first quarter results,
which were “boosted partly by strong sales in China, with a 26-percent
increase.” Currie “attributed the rise to the company's Route 2015
strategy, which calls for five years of double-digit annual sales growth
in China.” Adidas has “opened more than 6,000 stores since it entered
the Chinese mainland market in 1997” (CHINA DAILY, 7/19).
CLOSING TIME: Meanwhile, the WALL STREET JOURNAL’s
Laurie Burkitt reported adidas is “closing its only company-owned
apparel factory in China as part of a move to improve efficiency.” An
adidas spokesperson said that the company “will close the 160-worker
factory in China's coastal city of Suzhou at the end of October.” The
company said that it “will source its products from other local Chinese
manufacturers.” It already “works with 300 supplier factories in the
country.” The spokesperson said that closure is part of adidas' “efforts
to restructure business in China and globally to ensure efficiency and
leverage scale.” The spokesperson added that adidas “will not be
reopening the factory elsewhere” (WSJ, 7/18).
