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Non-Tech : Nike -- Ignore unavailable to you. Want to Upgrade?

To: IBMikey who wrote (2331)	5/17/1999 5:37:00 AM
From: Duker	Respond to of 2403

Adidas America Plans High-Profile Stores, Scouts for Locations [Wouldn't their money be better spent on updating their product line and investing in technology and/or direct marketing support? (I thought the same when NKE announced the NikeTown concept). Maybe they can JV with Fila and Reebok?<g> --Duker BEAVERTON, Ore. (AP) -- Adidas America is looking for possible locations for high-profile stores in major U.S. cities despite a slowdown in sneaker sales growth this year. Adidas is scouting in New York, Boston, Philadelphia, Miami, San Francisco, Los Angeles and Seattle and hopes to begin work soon on new stores in at least two of those cities. It hasn't signed any leases. The shops will adopt a format similar to the 5,000-square-foot store Adidas opened in Portland, Ore., two years ago. "The stores will follow that template," said Adidas spokesman John Fread. Adidas already operates 38 outlet stores, which are intended primarily to sell off excess inventory at a discount. It has been considering a move into higherend retailing for more than a year. Adidas's move comes as many retailers are battling sluggish consumer demand for athletic footwear and apparel. Adidas anticipates sales growth in 1999 to be less than 10%, down from the 68% surge last year when its North American revenue topped $1.5 billion. Mr. Fread said the stores will allow the company to test products, signage and merchandising techniques with a variety of customers. It will in turn pass on effective ideas to its retail customers. "When things become more challenging, you need to do business better," Mr. Fread said. "This is an investment in how to do business." Adidas America is the Beaverton subsidiary of German athletics giant Adidas AG. Its rival Nike Inc., the best-selling sneaker marketer, already has 13 NikeTown stores. "We don't even say that word," Mr. Fread said when asked about NikeTown.