The sporting goods retail environment is changing constantly. People increasingly want to get involved with our brands. We therefore continue to adapt our distribution strategy to cater for this change and have made controlled space initiatives a strategic priority. This includes retail space management with key retail partners as well as the introduction of new own-retail store formats. For example in November 2010, the Reebok Reetone World opened its doors in Munich. In close cooperation with major retailers, Reebok offers alongside the popular toning shoe some exclusive pieces of the “On the Move” collection. Customers can also design and personalise their own Reebok shoes at the YourReebok station. In addition, in the run-up to the 2010/11 basketball season, adidas launched exclusive NBA shop-in-shops within several hundred Champs Sports locations throughout the USA. Through initiatives like these, we believe we will be able to more effectively target consumers and involve them emotionally with our products.
Continued optimisation of key business processes and strict cost control are vital to achieving high profitability and return on invested capital. We are confident that there is still significant opportunity to further streamline cost structures throughout our Group. For example, we believe we will be able to realise medium-term economies of scale as we look for possibilities to further integrate adidas and Reebok functions. In addition, we continue searching for ways to increase efficiency in our supply chain and make it truly demand-driven. Furthermore, by implementing end-to-end planning processes and improving our replenishment capabilities, we see opportunities to not only better serve our customers but also to reduce our operating working capital needs see Global Operations. Another example in this respect is the reduction of the number of articles; this reduces workload in the creation area and warehouse costs, and allows us to offer more focused ranges to our retail partners.