Kommersant learned about Adidas’ plans to transfer business in Russia to a foreign investor
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The German manufacturer of sportswear, footwear and accessories Adidas may transfer the Russian division to a foreign investor. Such a scenario is considered in the company, writes Kommersant, citing sources in the retail market and in the retail real estate market.
According to one of the interlocutors, the 100 most profitable stores in Russia can restart in this way. The sources did not specify the companies being considered by Adidas for the transfer of the Russian business.
Adidas and the Russian division of the company did not respond to the newspaper’s request.
Against the backdrop of the start of Russia’s special operation in Ukraine in March 2022 Adidas suspended accepting orders through the application and website. The brand’s stores in Russia stopped working on March 13 last year. According to the company’s reports, in October it was decided to finally leave the country.
At the same time, Kommersant notes, the Russian structure of Adidas is still trying to maintain its activity. The explanatory notes to the reporting of Adidas LLC for 2022 state that the company’s management minimizes the consequences of breaking the supply chains of products. In particular, the company received a 14% discount on the lease of the Moscow office for 2023, subleased office space until 2026, and signed two contracts for the sublease of a warehouse in the Moscow region for a period up to 2024 and 2026.
At the end of 2022, Adidas LLC leased 153 store premises, including the former flagship store in Moscow on Kuznetsky Most. Last year, the revenue of the Russian structure amounted to 24.97 billion rubles, falling by 55% year-on-year. The net loss almost doubled the net profit – 7.93 billion rubles. against 3.99 billion rubles.
After the outbreak of Russian hostilities in Ukraine, a number of major foreign sports brands announced their withdrawal from the Russian market. In addition to Adidas, this decision was made by Nike, Reebok, Puma and others. In particular, the Russian division of Reebok redeemed Turkish holding FLO Retailin. As a result, the brand’s stores were renamed Sneaker Box and became multi-brand.
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