BERLIN — In a move to improve efficiency and strengthen margins, Adidas plans to trim its product range by 25 percent.
The German active sportswear giant set goals of growing its sales from 13 billion euros to 17 billion euros, or $17.02 billion to $22.26 billion at current exchange, and improving its operating margin from 7.6 percent to 11 percent in its strategic business plan for 2015 released 18 months ago. Since then, company executives have talked a lot about Adidas’ efficiency program and growth drivers. But now, a company spokeswoman said, “We’re focusing more on how we can achieve our operating margin goals.”
She explained Adidas is actively examining its assortment, looking at which articles in its current 46,897-piece line don’t have the volume behind them to enhance operative results and thus can be dropped. At the same time, she pointed out, Adidas will continue to launch new collections and therefore add products. “But overall, we’re looking at focusing on a smaller number of articles to help us become more efficient,” she said.
Adidas is also moving to include more globally oriented articles in its collection and grow its core program from the current hundreds of internationally uniform items to 1,000 by 2015.
“We will always have a very attractive product offer in each market to meet specific local needs,” the spokeswoman noted. “But the emphasis will be on more articles that function across markets, to better leverage successful margin drivers.”