In mid-2021, and following the operating model that had been applied in Brazil, Adidas In Argentina, it began a plan to reduce its own commercial structure that implied the closure of many of its stores and the adoption of a franchise scheme.
At that time, the German multinational had eight stores of the Originals concept and more than 20 stores in all its formats, distributed between the Federal Capital, Buenos Aires and Mendoza.
As part of its structure optimization plan, only four outlets were left operating directly and it got rid of the rest of its branches, closing the ones it operated in Mendoza and those located in the River and Boca Juniors stadiums.
At the end of 2020, Adidas had already anticipated its decision to modify its commercial format in the country, implementing voluntary withdrawals to reduce its staff by half; review the viability of its own stores, closing several and boosting online sales channels through its own e-commerce network or from independent platforms such as Mercado Libre.
Adidas: how to optimize resources
Similarly, it strengthened franchisee-run storesa system that is widely used by the company in Europe where it allowed it to accelerate its expansion, with stores with a surface area ranging from 350 to 500 square meters.
At the local level, the reorganization process aimed at optimizing the use of resources based on the consequences that the sanitary measures to combat the Covid-19 pandemic generated in the economy and in the retail business during 2020 and 2021 and that generated a strong crisis in the entire clothing and footwear sector that worsened with the quarantine.
In the country since 2020, the brand opted for the format of franchised stores
Regarding production in Argentina, the master plan maintained the Mixed structure, between imports and national manufacturing from local suppliers.
In the case of production, it has a contract with the Dass company, which exclusively manufactures some of the Adidas lines at the plant they own in the Buenos Aires town of Coronel Suárez.
The brand with the three strips seeks to expand operations
Now, the brand with the three strips deepens the business plan based on the support of sales with the franchise format when facing investments of $500 million in new stores and remodeling.
The process is aligned with its strategic program to continue expanding its operations and its presence in Argentina, for which, for example, it opened a new franchise store in DOT Baires Shopping and in the remodeling of three other locations in the River Museum. plate; Shopping Portal Tucumán and Patio Olmos, in the province of Córdoba.
According to a statement from the German multinational, the works were carried out in franchise stores of strategic clients and the $500 million was allocated to the purchase of new furniture, merchandise supply, recruitment of personnel and creation of new spaces.
According to the company, The changes were designed to improve the consumer experience and offer a greater variety of products for the lifestyle, training, running, outdoor and soccer categories.
The new store at DOT Baires Shopping represented an investment of $116 million
Only the new store at DOT Baires Shopping, located in the Saavedra neighborhood of Buenos Aires, represented an investment close to $116 million and the generation of 18 new jobs.
“Thus, Adidas is consolidated as the brand with the largest number of concept stores in Argentina with a total of 35 points of sale (30 Franchises and 5 Factory Outlets),” the statement said.
In this regard, Pablo Lamo, CEO of Adidas Argentina, said that “investments in stores are part of our growth plan in Argentina, and a sign of the strong long-term commitment we have in Argentina.”
The executive considered that these are places “with modern designs designed for the greater comfort of consumers. We are convinced that this is the way to continue growing and continue to be the sports footwear and clothing brand most chosen by Argentines”.
At present, and according to their own data, Adidas is the main manufacturer of sports clothing and footwear nationwide, with more than 40 years of experience and has more than 200 accounts where its products are sold..
According to other indicators, it is estimated that around 30 million sports shoes are sold annually in Argentina, half of which are imported. And according to the specialized consultancy Segmenta, Nike (30%), Adidas (19%) and Puma (15%) are the leaders in sales. Behind them are Topper (sandals), New Balance, Reebook (which belongs to Adidas globally), Converse and the German Puma, which manufactures and sells directly in Argentina.
