Adidas-Reebok to Take Swipe at Nike’s Swoosh
By George Anderson
The announcement that Adidas plans to buy Reebok for $3.8 billion creates an interesting power play in the athletic-shoe and sportswear category.
The deal, which requires shareholder and regulator approval, would give the combined Adidas-Reebok 26 percent of the global athletic-shoe market compared to Nike’s 32 percent.
“Nike will have someone nipping at its heels,” said Marshal Cohen, senior industry analyst at NPD Group.
While many do not expect to see any changes in athletic-shoe pricing to consumers as a result of the deal, Thomas Doyle, vice president of information and research at the National Sporting Goods Association, believes prices could come down in the future as the combined company realizes efficiencies through merged operations.
“A retailer can more easily negotiate with one company,” said Mr. Doyle.
According to a report by the Chicago Sun-Times‘ Sandra Guy, Sears sees the combination of Adidas and Reebok as an opportunity for its business. Sears company spokesperson said it could lead to more streamlined buying and provide shoppers with more athletic-shoe options.
Sears sells both Reebok and Adidas brands but will no longer sell Nike after the brand decided to pull its products out of the retailer after it merged with Kmart.
Moderator’s Comment: What will the Adidas-Reebok deal mean for the athletic wear category and retailers if approved
by shareholders and regulators?
The companies expect to close the transaction in the first half of next year.
– George Anderson – Moderator