Decathlon lands in Australia
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Following its announcement in October 2017 of its intentions to open 100 Australian stores, French sporting goods retailer Decathlon have officially opened its first, which is also its flagship, store in Sydney’s Tempe.
This marks the arrival of a disruptive force within the sporting goods retail sector, with the company attracting substantial consumer demand, generating about $100,000 in sales each month, according to IBISWorld.
Olivier Robinet, the chief executive of the Australian arm of French sporting goods retailer Decathlon, promises a market disruption.
Decathlon has plans to open up to 100 stores in Australia, at a rate of about two to five stores per year. The price-savvy sports equipment retailer is expected to take market share from existing major players in the industry, including Rebel, Amart Sports, Kathmandu, BCF and Rays Outdoors, making it a major competitive force in years ahead.
Decathlon primarily focuses on selling private label products at prices that are typically 50 to 70% cheaper than comparable branded goods, a model that has proven successful worldwide, with the company achieving annual sales of $15 billion across its e-commerce platforms and 1,200 physical stores in 30 countries, including the UK, Europe and Asia – and now Australia.
Headquartered in France, Decathlon employs 80,000 staff globally and creates over 2,800 new sporting goods products and 40 patents every year.
The Tempe store is over 3,800 square meters, with over 70 staff on hand, offering a range of more than 7,000 sharply-priced products across 70 sports and leisure categories, which is expected to attract strong demand from value-conscious consumers that enjoy activities such as camping, hiking, cycling and snorkelling.
Camping and participation in outdoor and fitness activities have become more popular over the past five years, driving industry demand. However, demand has been somewhat constrained by negative consumer sentiment and sluggish discretionary income growth.
Revenue for the sport and camping equipment industry is set to rise by almost 2% per annum over the next five years.
Questions & Answers
Q.What is Decathlon's store opening strategy for Australia?
What is Decathlon's store opening strategy for Australia?
Decathlon intends to open up to 100 stores in Australia. The company plans to expand at a rate of approximately two to five new stores annually following the opening of its first flagship store in Tempe, Sydney.
Q.What is Decathlon's primary business model?
What is Decathlon's primary business model?
Decathlon primarily focuses on selling its own private label products. These goods are typically priced 50% to 70% cheaper than comparable branded items, a strategy that has proved successful globally for the retailer.
Q.How large is the new Decathlon store in Tempe, and what does it offer?
How large is the new Decathlon store in Tempe, and what does it offer?
The new store in Tempe spans over 3,800 square meters and employs more than 70 staff. It offers a selection of over 7,000 products across 70 sports and leisure categories to attract value-conscious consumers.
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