Adidas Plans to Return to the Russian Market, Revealing Potential Date

Adidas Sets Date for Reopening Stores in Russia

Adidas, the renowned German sportswear and footwear brand, is making preparations to resume its operations in the Russian market. According to sources within the company's Russia unit, Adidas is planning to reopen its stores on November 1, as reported by Mash on its Telegram channel.

This development comes after the company closed its retail outlets and online stores in Russia in March 2022, following the imposition of sanctions.

Partnership with Daher Group and Potential Rebranding

Adidas has reportedly signed a contract with the Daher Group, a Lebanese branch of the investment company that owns the Dubai Mall, one of the largest shopping centers in the world.

The Daher Group also manages Fashion and More Management DMCC, a UAE-registered company that recently acquired Zara, Bershka, Pull&Bear, and Massimo Dutti stores in Russia from the Spanish fashion giant Inditex. The partnership with the Daher Group indicates Adidas' commitment to reestablishing its presence in the Russian market.

Recruitment for the new Adidas stores is scheduled to commence in early fall to ensure a smooth launch in November. However, it is yet to be determined whether the stores will retain the Adidas brand name or reopen under a new name, similar to what happened with the former Inditex stores.

Potential Sale and Rebranding Discussions with FLO Retailing

Reports have also emerged regarding Adidas' discussions with Turkish firm FLO Retailing for the potential sale of its Russian business. Real estate consultants familiar with the matter have suggested that the deal is expected to be finalized in the fall and may involve a full rebranding of Adidas' Russian stores. FLO Retailing, known for operating brands such as the US Polo Association, Lumberjack, and Reno, previously acquired Reebok's Russian stores, which have since been rebranded as Sneaker Box.

The exact details and confirmation from both FLO Retailing and the Daher Group are yet to be provided, as they have not commented on the reports.

Adidas' Decision to Wind Down Business in Russia

Last year, Adidas, along with several other Western brands, suspended its operations in Russia due to sanctions. In October of the same year, Adidas announced its decision to permanently wind down its business in the country. This strategic move had a significant impact on the company's profits, resulting in a nearly $110 million decline in the third quarter of 2022.

Conclusion 

Adidas is making preparations to make a comeback in the Russian market after temporarily suspending its operations due to sanctions. The company has set a potential date for reopening its stores on November 1 and has entered into a partnership with the Daher Group, which owns the Dubai Mall. Recruitment for the new Adidas stores is expected to begin soon.

There are discussions underway regarding the potential sale of Adidas' Russian business to FLO Retailing, which may involve a full rebranding of the stores.

The decision to wind down its business in Russia last year had a significant impact on Adidas' profits. However, with these new developments, Adidas aims to regain its presence and cater to the Russian market once again.