Foot locker entered into an “enhanced” relationship with adidas in which brands will work together to enhance product innovation, create quality experiences and deepen customer connectivity. The partnership establishes Foot Locker as adidas’ Premier Basketball Partner and aims to generate more $2 billion retail sales by 2025, i.e. close to triple partnership income from 2021.
The deep relationship will combine new product development, exclusive Foot Locker positioning, increased product allocations, shared marketing spend and a high premium presence across Foot Locker’s entire banner portfolio, putting focus on key cities and communities that the companies jointly serve. Both retailers will increase their focus on digital and accelerate the rollout of the adidas Partner Program at Foot Locker.
The collaboration will focus on adidas brands, including NMD, Superstar and Stan Smith, as well as adidas’ portfolio of influencer partnerships. Additionally, adidas will provide Foot Locker with a dedicated team created to deliver an elevated customer experience both in-store and online to drive demand, and Foot Locker will play a leading role in the new apparel product division. adidas sports shoes.
“We are excited to deepen our partnership with Foot Locker as we continue to execute on our ‘Own the Game’ strategy,” adidas CEO Kasper Rorsted said in a statement. “Consumers will be at the heart of this exciting collaboration and will be able to experience the adidas brand and its major product franchises, as well as new product innovations at Foot Locker, stronger than ever.”
“We are delighted to strengthen our partnership with adidas as we continue our strategy to expand our selection of footwear and apparel for the sports and sneaker communities,” said Richard Johnson, Chairman and CEO of Foot Locker in a statement. communicated. “This close partnership will allow us to offer consumers even more unique and premium products from iconic brands, as well as accelerate our push into apparel, adding a new dimension to our assortment and attracting more customers. in our ecosystem.
Foot Locker’s strengthened relationship with adidas could help the retailer fill the void created by its move away from Nike. Nike products accounted for nearly two-thirds of total vendor spend for Foot Locker in Q4 2021, but Foot Locker aims to diversify its product portfolio as Nike moves away from select retail partners to focus on its own DTC business and new store concepts .
In March 2022, Foot Locker announced a strategic shift to DTC led by both Foot Locker and “one of the company’s suppliers”, which likely referred to the yet to be announced adidas partnership. Foot Locker’s diversification plan also includes reducing the maximum spend from a single vendor to cap at 55% by Q4 2022. The initial impact of this process will be revealed on May 20, 2022 when Foot Locker releases its first quarterly results since announcing the new strategy.