High realty prices hit India plans: Adidas India MD
Expansion plans of footwear and apparel major Adidas India have been hit by high real estate prices in the country, a company official said.
By TNN |
KOLKATA: Expansion plans of footwear and apparel major Adidas India have been hit by high real estate prices in the country, a company official said. Adidas India Marketing Private Ltd managing director Andreas Gellner said: ���Rise in real estate prices have been affecting our growth plans in India.���
The company was planning to increase the number of retail stores from 325 at present to 450 by the end of 2008. It operates the stores through franchise route. Talking about real estate prices, he said that the prevailing rentals were not realistic. Typically, the rentals should be around 15-17% of turnover per square feet.
However, the rentals at the moment were more than 20% per square feet. In some cases it was around 40% per square feet, he said. Mr Gellner said Adidas was not keen to spend that high an amount.
The company was planning to increase the number of retail stores from 325 at present to 450 by the end of 2008. It operates the stores through franchise route. Talking about real estate prices, he said that the prevailing rentals were not realistic. Typically, the rentals should be around 15-17% of turnover per square feet.
However, the rentals at the moment were more than 20% per square feet. In some cases it was around 40% per square feet, he said. Mr Gellner said Adidas was not keen to spend that high an amount.
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