The news: Wholesale will play a “significant role” in adidas’ 2023 strategy under new CEO Bjørn Gulden as the company attempts to put its failed Yeezy endeavor in the rear-view mirror and catch up to Nike.
Why it makes sense: For adidas, reversing course—at least for now—on its direct-to-consumer (D2C) push is a savvy move as it tries to offset the enormous cost of jettisoning its Yeezy business.
Striking a balance: Adidas isn’t the only retailer to look to wholesale to revitalize sales: A growing number of D2C brands, from Allbirds to Glossier to Parade, have embraced retail partnerships to grow sales and consumer awareness.
The big takeaway: While direct sales continue to be an important growth opportunity for retailers, it’s not surprising to see adidas and potentially Nike reprioritize wholesale as they look for ways to rightsize inventory levels, avoid costly investments into distribution centers and ecommerce infrastructure, and reduce marketing expenses.
This article originally appeared in Insider Intelligence's Retail & Ecommerce Briefing—a daily recap of top stories reshaping the retail industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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