adidas: setting the stage for future success

Renowned footwear retailer introducing dynamic new store concepts with focus on customer experience // By Mario Toneguzzi

The volatility and topsy-turvy world that the retail landscape has experienced over the course of the past two years or so, since the onset of the global pandemic, has forced retailers to adapt, to pivot, in order to meet the challenges of the current environment. Those that have remained stagnant have watched the retail world fly by them. Those that have embraced change have thrived and set the stage for future success. Retailer adidas has been one of those successful companies that has made changes to the way it does its business as well as introducing a number of different concepts for the marketplace.

“Honestly, over the last few years, we have seen a significant change in consumer behaviour,” says Lesley Hawkins, VP Retail at adidas. “Today’s consumer has so much choice. They’ve got their smartphone in their pocket or in their hand at all times. They have the means to buy any product from anywhere at any time, literally in seconds. We’ve seen a shift in consumer demand. They’re demanding convenience and speed. They expect brands to entertain and entice them to buy products and they honestly want to feel emotionally connected, linked to the brand.”

Hawkins says adidas sees its retail stores as the physical and emotional connection between its consumers and the brand where it offers differentiated products, services and experiences within the consumer’s chosen channel.

“What we do with our retail concepts is continually reshape and redefine them in order to provide differentiated experiences across the different channels,” she says. “So as the consumers change so do our retail concepts.”

Halo store

Currently, adidas has 33 locations in Canada. The brand’s flagship is the Halo store, which is the store at the CF Toronto Eaton Centre. It is what inspires the retailer’s consumers with the best-in-class brand standards with a premium offer.

“Our Halo store is a destination for brand launches, all of our immersive campaigns, events and consumer creation spaces,” explains Hawkins. “In terms of services, our Halo stores offer premium, personalized service with an opportunity for the consumer to bring their own creativity to light with our product. We have digital innovations and state-of-the-art tech which really helps enhance a seamless consumer experience. The consumer has access to our entire Canadian range through a real omnichannel lens so they can be in-store and browsing online to buy complementary product.”

The Halo store has a premium merchandising assortment with retail exclusive products as well as hyped collaborations and early access to new collections.

“There’s a real focus on community within our Halo store,” she says. “So, it’s a destination for our consumers to engage with the brand and really feel like they’re part of the family. A lot of the work that the store team is doing right now at Toronto Eaton Centre is about engaging with our community. Currently in Canada we have the one Halo store and we are looking to expand into the Vancouver market in the coming years, with more details to come as we finalize that space.”

The Toronto store is a nearly 13,000-square-foot space and follows adidas’ opening of its first Halo store in New York City on 5th Avenue in 2016. The brand has subsequently opened many Halo stores in key cities around the world, including Dubai and London most recently.

Terrex outdoor store

Another concept that adidas has launched is the first branded Terrex outdoor store in North America in the Kitsilano area of Vancouver. It’s a concept designed to connect the consumer to the outdoors with a focus on sustainability, membership and the ultimate outdoor experience. The first Terrex store was expected to open before the end of the year.

“The concept will bring the outdoors inside into a retail community environment with new things, state-of-the-art materials and technology,” says Hawkins. “There will be a digital footwear wall that provides the consumer with an immersive experience through dynamic product presentation and unique product testing environments. There’s also a Discovery Zone where they can learn about all of our sustainability efforts to end plastic waste. There is a flexible space for community events, a try-on and test space that will also be available for speaker opportunities within those community areas. In addition, unlike anything you would have seen in retail to this point, our real outdoor canopy brings nature indoors with live plants and a living wall.”

Globally, the first Terrex branded store opened in Munich, Germany in November 2021. Terrex is adidas’ outdoor brand with an extensive product assortment of footwear, apparel, and accessories. The location chosen on West 4th in Kitsilano is a very busy destination for the young urban outdoor enthusiast and will be just under 2,300 square feet.

The Collection

Another new retail concept is The Collection which is for adidas Originals - a space that curates moments and captures culture, contrasting the past stories with a future vision, just as the Original brand does. It will provide access to hype collaborations, the latest Originals Collection, and serve as a destination for that urban lifestyle consumer.

The first store will open in Canada next year at massive mixed-use development, The Well, in downtown Toronto. Bordering Front, Spadina and Wellington, The Well is an extension of the urban vibrancy of King West. It is on 7.8 acres and will include 320,000 square feet of total retail space, 1.2 million square feet of office space, 1.5 million square feet of new residential space and 1,700 condominiums and purpose-built rental suites. The store will be 5,800 square feet and is located in the highest profile, most visible space of the project, at the main entrance of The Well and surrounded on three sides by windows.

The Pulse

“Another exciting new concept that we will be introducing is for our value seeking consumer and will be introduced in 2023 at some existing stores called The Pulse,” says Hawkins. “Like the heartbeat of the sporting community, that’s what The Pulse is. It’s going to offer an elevated experience with commercial products along with a real focus on activation and promotions. It will be our premium, factory outlet concept that we’ll roll out. It’s just been introduced in Dallas earlier this year and will be coming to Canada in the Spring of 2023.”

Partnership development

adidas has also worked out a partnership to bring its products into dedicated spaces within several Indigo stores in Canada as well as online. The kids’ LEGO collection has been installed in some locations. In addition, adidas joins Indigo’s community of wellness brands, offering products from the adidas women’s studio and loungewear collections. Canadians can expect to see everything from yoga pants to after-work-out essentials available both in store and at Indigo.ca.

“Indigo believes in a healthy lifestyle which ties perfectly into our brand’,” says Hawkins. “It’s a great opportunity for partners that are working towards helping the health-conscious consumer.”

She adds that one of the things that retailers have learned over the last few years is the importance of adapting and changing with the times.

“The ability for business to adapt has become more and more important,” she explains. “The idea of having a retail space that adapts to the changing consumer, easily adjusting not only their assortments but the look and feel of their stores, drove a lot of our decisions. Communities have changed over the last few years. Communities are changing constantly. So, the more nimble we can be in making those adjustments to better align with the consumer and the neighbourhoods in which we are located, the better we can serve the consumer.”

In a previous interview with Retail Insider, Alim Dhanji, President of adidas Canada said the brand is excited about the opportunity in Canada for adidas to continue to grow.

“Consumers are demanding a truly omnichannel experience. We will be expanding our retail footprint over the next four years. What we want to do is ensure that we’re in the right place at the right time for the right consumer. The consumer is looking for an omnichannel experience where it’s seamless for them to navigate online but also have an experience touch point within our stores and offer that seamless ability to order and pick up or return in store. We’re certainly, with the expansion of our fleet, going to be able to deliver more of that omnichannel capability.”