Its efforts to lift digital sales have been boosted by connections with fellow German group Zalando and the limited release of a mobile app that offered users a high degree of personalization. Going forward, Adidas will continue to roll out the smartphone app to other international markets and aims to hire around 200 employees focused specifically on digital by 2020.
Mr Rorsted expects the that over the course of the next year, the "absolute spread [between offline and online sales] will increase," and that although the number of stores they operate will contract, Adidas will focus on making the remaining stores better. These increases in online revenue are expected to also lift profit margins as online is a higher-margin distribution channel than traditional offline retail. Mr Rorsted intends to boost sales 10-12 % per year by 2020 and the company has forecasted net profits to increase 20-24 percent per year until 2020. The Adidas chief also expects the full effects of their increased investment in digital to only be felt post 2020 as expenditure levels rise in the short term.
Adidas currently has around 2,500 stores located around the world and 13,000 mono-branded, franchise locations.
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