Reebok Mexico has opened a new store in Forum Buenavista and Torre Mitikah, Mexico City, starting the brand’s expansion in the country. The plan is to open four more stores by the end of 2023 and have a total of 24 by 2027.
The company has three outlet stores in the country like Punta Norte, Mexico City, which allows customers to access the products at a lower price. Teo Husemann, Managing Director, Reebok Mexico, says that the brand plans to establish its presence as quickly as possible in Mexico. Before the opening of the Buenavista store, the first freestanding location in Mexico City, the brand was only available in bigger retail stores like Liverpool or Palacio de Hierro.
In 2021, Adidas sold Reebok to Authentic Brands Group (ABG) for US$2.5 billion due to the latter’s underperformance. The sneaker brand became part of a retail conglomerate that bought several bankrupt companies like Aeropostale, Forever 21 and Brooks Brothers. Since the acquisition, ABG’s goal has been to build Reebok back up with brick-and-mortar stores. Still, this strategy has been questioned due to the changing market trends of e-commerce.
Before the sale, Reebok’s revenue reached €1.4 trillion (US$1.52 trillion) in 2020, taking a hit by the pandemic’s restrictions that limited visits to physical stores. The following year, the revenue went up to €1.76 trillion (US$1.92 trillion), when the sale to ABG went through in March. However, in 2022, the brand experienced a significant drop to €353 billion (US$385 billion).
In Mexico, the bet on physical stores could boost Reebok, since customers are returning to physical stores and fashion malls to shop. The Mexican Association of Online Sales (AMVO) has reported that 60% of buyers show a preference for shopping both online and in stores. This is known as brick-and-click, or omnichannel. Customers are reportedly looking at the online catalog before buying the products in physical stores or looking at the product at the store before buying online for convenience.
Reebok Mexicowants to focus on the local market and build further awareness in both e-commerce and online retail opportunities.
“Right now, we are focused on aligning processes and now we will go with our stores that are already settled in the main cities of the country. We want to expand in Guadalajara and Monterrey, and then we will go to secondary markets. At Reebok Mexico we have a team of experts that will help us achieve our plans,” says Husemann.