Dive Brief:
- Expanding its presence in New York, Adidas debuted its first retail location in the Bronx neighborhood of New York City at the Mall at Bay Plaza, the brand told Retail Dive via email on Thursday.
- The 11,000-square-foot store features a digital footwear wall that displays product information when shoppers pick up a shoe; digital windows highlighting the brand’s campaigns, partners and products; and click-and-collect service areas. The store will feature products across its assortment, including items from its sportswear, basketball and Ivy Park collections.
- The brand commissioned Bronx native and creative designer Jae Tips to create artwork for the store, which was revealed at the opening celebration on Saturday. The first 100 shoppers who visited the store and made an in-store purchase received a gift tote bag from Adidas and Tips.
Dive Insight:
Adidas’ new store officially opened on Thursday and represents a deeper commitment to New York, according to the announcement.
“This is an important one for us in our key city New York,” LaNiece Douglas, vice president of retail in North America, said in a statement. “We can’t wait to welcome everyone and really see it come to life. Shoppers will be able to explore our latest collections and products from top partners.”
The store debut comes as the brand struggles in the aftermath of cutting ties with rapper and fashion designer Kanye West, also known as Ye. Though West had previously made other problematic statements, the brand finally cut ties with him in October after his antisemitic comments drew widespread criticism. Following that decision, the company earlier this month issued low guidance for the year because of potential losses from Yeezy products, which could reduce its revenues by roughly 1.2 billion euros ($1.28 billion at the time).
In light of Adidas’ recent travails, S&P Global Ratings downgraded the company’s debt ratings last week, saying it faces multiple problems, including the end of its deal with West and its weak earnings guidance. Per S&P, Yeezy merchandise sales comprised 5% of Adidas’ total sales in 2021 and were predicted to be 7% of its sales last year.
With West out of the picture, Adidas is moving onto partnerships with other notable names to promote its products. The company launched its first new label in five decades earlier this month. It brought in actress Jenna Ortega as the face of the label, and tapped ambassadors including professional basketball player Trae Young, Women’s Super League forward Mary Fowler and others to highlight the collection.
