Adidas To Open On Oxford Street

Adidas is set to open its first store in the UK on Oxford Street in London. The store, opposite Selfridges, will take over the site previously occupied by retailer Benetton, and will be seen as a trial for opening further stores in other locations around the country.

The cost for trading on London's best known shopping street comes at a very high price, and it is reported that Adidas will be paying more than GBP2m a year to landlord Axa Sun Life for rent. This all for the privilege of trading on Oxford Street.

Benetton, reportedly, is to be paying around GBP1m in refurbishment costs in order to convince Adidas to take over the lease. The Italian fashion brand has occupied the site since 2001. However, like some other European retailers, Benetton has questioned the maths of trading in high profile UK location, with London rents typically much higher than in other European capitals.