Decathlon, the French sports retailer, has said that it will invest a substantial € 100 million, or roughly Rs. 933 crore, in India over the course of the next five years.
The investment will support Decathlon’s growth from 127 to 190 locations, improve its online presence, fortify its supply chain, and increase the company’s array of made-in-India products. Currently, locally produced goods make about 68 per cent of Decathlon’s sales in India. By 2026, the store wants to source 85 per cent of its products locally.
The investment aligns with the company’s aspirational goals to achieve revenue doubling to Rs 8,000 crore in the next three to five years. Decathlon’s unaudited sales for FY24 is Rs 4,000 crore, according to CEO of Decathlon India Sankar Chatterjee.
Examining the firm’s proposed investment in more detail, Chatterjee stated that the company plans to bolster its value chain and last-mile deliveries by investing in automation. He stated that the sportswear shop is developing a strategy for its rapid push into commerce, but he did not provide specifics. At the moment, 11 per cent of Decathlon’s orders are placed online.
“We will be in the quick-commerce mode for a specific range of products. Presently, in seven cities we offer next-day deliveries. I am talking about 85 per cent of our products – the essentials. Normally, customers don’t look for a treadmill the next day. But for categories such as rackets, badminton, football, apparel, and footwear, customers prefer next-day delivery. We deliver the next day in seven cities and plan to reach faster,” he said.
Decathlon uses contract manufacturers and does not own any facilities in India. Rejecting the idea of opening a manufacturing facility, Chatterjee stated that the company already has long-standing partnerships with partner factories so as not to sacrifice product quality.
In addition to 3 warehouses, Decathlon also runs 3 dark stores, Chatterjee said adding that the company is planning to add a new warehouse in the East.
