Adidas to close 200 stores in Russia in 2015 because of weaker ruble.
The world’s second largest sports retailer Adidas is to shut 200 shops in Russia in 2015, as the company is severely impacted by significant devaluation of the rouble and other emerging market currencies.
The Adidas Group will close 290 unprofitable stores worldwide with some 200 in Russia, according to the annual report, published Tuesday. However, despite slashing the number of stores, the company plans further openings - 100 are expected in Russia.
“We are the victims of our own success. Being the clear market leader, we have been particularly impacted by the economic downturn, deteriorating consumer sentiment and the highly promotional environment in Russia,” Herbert Hainer CEO of Adidas Group said in his annual statement, stressing that Russia would remain a growth market for the company in the long-term.
The deteriorating value of the Russian ruble along with other emerging market currencies had a big effect on the German sports equipment maker, wiping altogether more than €550 million off the company’s top line in 2014, according to Hainer. Unfavorable hedging rates negatively impacted the group’s gross margin by 60 basis points as well.
Source:
http://rt.com/business/238017-adidas-russia-stores-shutdown/
“We are the victims of our own success. Being the clear market leader, we have been particularly impacted by the economic downturn, deteriorating consumer sentiment and the highly promotional environment in Russia,” Herbert Hainer CEO of Adidas Group said in his annual statement, stressing that Russia would remain a growth market for the company in the long-term.
The deteriorating value of the Russian ruble along with other emerging market currencies had a big effect on the German sports equipment maker, wiping altogether more than €550 million off the company’s top line in 2014, according to Hainer. Unfavorable hedging rates negatively impacted the group’s gross margin by 60 basis points as well.
Source:
http://rt.com/business/238017-adidas-russia-stores-shutdown/
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