Aditya Birla Lifestyle Brands Ltd (ABLBL) aims to open 40-50 stores each year in the upcoming years as it seeks to capitalize on substantial market opportunities that remain unexplored, company representatives stated during the recent earnings call.
Reebok has achieved approximately 30 percent growth in the latest quarter ending in March, and is experiencing robust momentum from both same-store sales and network growth, according to management.
”Reebok is in a favorable position regarding momentum, but we’ve just started. There’s much work to do in terms of overall network expansion,” stated ABLBL Deputy Managing Director Vishak Kumar.
The company identifies significant growth opportunities for the brand throughout India and aims to pursue an assertive expansion plan.
”We currently have around 210 stores in Reebok’s network. The potential for growth is significantly greater. We plan to continue network expansion, targeting forty to fifty new stores annually in the coming years, unless we exceed that goal,” Kumar added in response to a question.
Back in 2021, Aditya Birla Fashion & Retail Ltd (ABFRL) signed a long-term licensing deal with Authentic Brands Group (ABG), obtaining exclusive rights to distribute and sell Reebok products across India and selected ASEAN territories.
Following the demerger of the branded apparel division from ABFRL, Reebok is now part of ABLBL.
Kumar noted that Reebok’s growth is fueled by a mix of double-digit like-for-like sales increases and the introduction of new products, which are also contributing to this momentum.
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To maintain its growth trajectory, the brand is focusing on launching new products. Recently, Reebok introduced its Multi-Court Shoes range, which Kumar called a ”breakthrough product” that has garnered an enthusiastic market response.
”I believe that both like-for-like growth and Reebok expansion should persist for the foreseeable future,” he mentioned, adding that network growth will continue across brands. ”We have a robust pipeline of stores.” Since ABLBL acquired the brand three years ago, it has been on a strong growth path.
”Since our acquisition three years ago, the brand has nearly doubled in size… We hope to grow even faster in the future,” he stated, adding that brands like Reebok have significant room for growth. Kumar reiterated that the brand has consistently followed a powerful growth trajectory since ABLBL took over.
”Since we have taken over the brand three years back, it has almost doubled in size. We aspire to exceed that growth moving forward,” he further explained.
In its expansion efforts, ABLBL is also focusing on emerging retail hotspots and smaller towns to promote growth alongside metropolitan areas.
”There are substantial untapped opportunities for Reebok as we aim to make up for lost ground. New malls and locations are constantly emerging across the nation, and we intend to leverage these opportunities. Smaller towns have proven to be a reliable source of growth, and we will continue our efforts in those areas,” Kumar remarked.
He emphasized that product innovation and deeper category engagement would remain critical for driving same-store sales increases.
”There is considerable potential for product innovation and category expansion. Our retail like-for-like growth has consistently been in double digits, and we believe there’s ample scope for ongoing enhancement,” Kumar stated.
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