Adidas set to expand in China with 3000 new stores by 2020

German sports apparel maker Adidas plans to open 3,000 new stores in China by 2020, according to Wal Street Journal (WSJ).

Through its announcement made on Friday, the sportswear giant seemed to exude confidence boosted by its earnings report released on Thursday, which highlighted 18 per cent sales increase (excluding foreign exchange effects) in the China, Hong Kong, and Taiwan region last year.

In the fourth quarter alone, sales were up 16 per cent in the region. The Chinese government is also supportive by introducing new policies, that aims at reforming soccer industry.

These new stores will see a rise in retail locations in the country, from 9,000 to 12,000. Through its expansion plans, the retailer expects to cover more than 2,200 cities in China.

Also Read – Sportswear retailer Adidas notes 16% boom in revenue

Adidas is not the only company that has gone for store expansion in China. Fast fashion retailer H&M has also reported that it has opened 54 stores there in the fourth quarter of 2015, after doing good business in China.

Undeterred by the economic turmoil that China is undergoing, which last year recorded its slowest growth in 25 years, with the country slipping into recession and international isolation, retailers like H&M and Adidas are going big with expansions. The reason behind this is the market that they serve in China. Unlike luxury retailers like Burberry and Prada, who are not performing well enough, given the fact that the demand for luxury goods has fallen, the demand for everyday products remains strong with retail sales growing at 11.1 per cent.