CK Jaipuria Family Office has signed a retail franchise deal with Adidas India to set up retail stores of the global sportswear company across India.
“In tier 2 and 3 markets, the Adidas stores we will set up exclusively by us,” CK Jaipuria said. The group plans to set up 100 Adidas footwear and sportswear stores by the end of 2024, he said. This will be Adidas’ biggest franchise partnership in the country.
An email seeking comments from Adidas India remained unanswered till press time on Sunday.
The development comes at a time when brands look to rapidly expand their offline presence amid forecasts of healthy revival of consumer demand.
A January report by the Retailers Association of India (RAI) said retail industry sales in December 2022 showed healthy demand for footwear and sports goods. The report said overall retail sales grew 16% last month, compared to the pre-pandemic December 2019, with footwear and sports goods reporting 29% and 25% growth, respectively.
Retailers said demand for athleisure and sporting apparel has picked up with easing of Covid-19 restrictions. Even before the onset of the pandemic, athleisure sneakers, sweatshirts, fitness clothing and high-performance sportswear had become trendy, with consumers opting for these even for casual wear dressing, and lines blurring between causal and sportswear, they said.
CK Jaipuria group is PepsiCo’s franchise bottler in Andhra Pradesh and Jammu & Kashmir. It is an investor in D2C eyewear maker ClearDekho and social media app Explurger. CK Jaipuria is the brother of Ravi Jaipuria, PepsiCo’s largest bottler in South Asia.
Adidas, which competes with Nike, Puma and Skechers, flagged off its first concept store of the year earlier this month, to boost its brick-and-mortar retail presence. Some of the brand’s existing physical stores also sell its global lines such as Ivy Park by Beyonce, Pharrell Williams, and Jeremy Scott.
However, as was the case with the entire category during the pandemic when people stayed indoors and gyms and offices stayed shut, Adidas India’s revenue had declined by 23% to Rs 945 crore in FY21, down from Rs 1,228 crore in FY20, according to its filings with the Registrar of Companies.