adidas expects that Russia and the other former Soviet states could become its biggest market in Europe by 2010, with sales in Russia expected to reach $1 billion in 2009.
“The adidas Group is growing so fast in this large country that it is already one of our most important markets in Europe with the potential to claim the top spot by 2010,” said adidas CEO Herbert Hainer, speaking in Moscow the day before the UEFA Champions League soccer final.
adidas said its market share in Russia is more than twice that of its nearest competitor, and adidas' Russian sales have been growing by an annual 50% in the past seven years. A focus on key accounts and the expansion of single brand stores have driven growth for both adidas and Reebok there.
At the end of 2007, adidas operated more than 460 stores in Russia and the other former Soviet states, and plans to increase that its presence to more than 750 stores in 2008. The company said it is the leader in the Ukraine, and successfully entered Kazakhstan in 2007.
Sales in Russia and the loose grouping of ex-Soviet states – which include the Ukraine, Armenia, and Belarus grew more than 50% in the first quarter. Overall first quarter sales in Europe increased 12% on a currency-neutral basis.
