Online unable to offset revenue lost from store closures


May 5, 2020 | By RetailME Bureau

According to data analytics and consulting company, GlobalData, the online channel is unable to offset revenue lost due to store closures amidst COVID-19 pandemic. Only recently, countries around the world have begun easing lockdown and movement restrictions and businesses have started reopening in phases.

“Adidas has suffered at the hands of COVID-19. The brand has reported a decline in net profits of 97% and a revenue decrease of 19% to €4.8 billion in the first three months of 2020. Economic uncertainty has squeezed the budgets of consumers and reduced discretionary spending. Adidas’ results reflect the scale of the impact,” said Luke Gowland, thematic analyst, GlobalData

“With 70% of its stores closed worldwide, Adidas is reliant on its e-commerce channels. Despite the company’s e-commerce revenues growing by 35% in the first quarter of the year, the channel has not been able to offset revenue lost due to store closures. With the pandemic likely to drag on for some time yet, the company is bracing itself for an expected 40% decline in second-quarter sales,” Gowland added.

While the uncertainty is beyond Adidas’ control, the company could try to reinforce its online channel by improving user experience and adding functionality to make shopping online more accessible and attractive, suggests GlobalData. Adidas should integrate visualisation technologies like augmented reality into its websites, making it possible for customers to virtually try on clothes and see what they will look like in a range of colours and styles, all from the comfort of their own homes.

 

For all the latest retail news from Middle East, follow us on Twitter and LinkedIn, like us on Facebook and subscribe to our YouTube page.

Comments

comments

Previous Article Next Article

YOU MAY ALSO LIKE /



UAE-based concept grocery retail chain, Grandiose has opened a new supermarket within 

Continue Reading

November 22, 2020 | By RetailME Bureau

US-based fast food chain, Nathan’s famous Inc. brings another New York classic, 

Continue Reading

November 12, 2020 | By RetailME Bureau

Dubai-based Union Coop, the leading Consumer Cooperative in the UAE, opened its 

Continue Reading

November 11, 2020 | By RetailME Bureau

UAE homegrown marketplace, Noon.com has announced its Yellow Friday sale from November 

Continue Reading

November 5, 2020 | By RetailME Bureau

UAE-based Al Maya Group officially launched an exclusive range of Woolworths products 

Continue Reading

October 30, 2020 | By RetailME Bureau

Abu Dhabi headquartered LuLu Group has opened its latest hypermarket at Khalifa 

Continue Reading

October 29, 2020 | By RetailME Bureau

elGrocer, the grocery delivery app with ties to some of the major 

Continue Reading

October 25, 2020 | By RetailME Bureau

Jones the Grocer set to open its doors at Dubai’s newly launched 

Continue Reading

October 18, 2020 | By RetailME Bureau

Saudi-based operators of hypermarkets and supermarkets BinDawood Holding Company has completed the 

Continue Reading

October 16, 2020 | By RetailME Bureau

The regional food and grocery delivery app Talabat has announced the expansion 

Continue Reading

October 15, 2020 | By RetailME Bureau

Walmart is hiring 10,000 new employees in Canada for positions in stores 

Continue Reading

October 14, 2020 | By RetailME Bureau

British quality grocery retailer Waitrose & Partners launched its first e-commerce platform 

Continue Reading

October 11, 2020 | By RetailME Bureau




Download Images RetailME Magazine