Reliance Retail is planning to launch a new sports store format to compete directly with French retailer Decathlon. This move aims to tap into the growing market for athleisure products that surged after the Covid-19 pandemic, according to three sources familiar with the matter.
New Store Locations
The company is looking to lease spaces between 8,000-10,000 sq ft in malls and prime city locations for its new brand, the name of which has not been disclosed yet. “While Reliance Retail has expanded significantly in recent years, sports was a missing category,” one source said. “India needs a sports retailer that can compete with global giants. The sports category has shown a lot of growth and is expected to continue growing.”
No Response from Reliance
Reliance Retail did not respond to email inquiries by press time on Monday. A mall operator revealed that the company seeks spaces that can extend outside the mall to include play areas, a model used by Decathlon.
Decathlon’s Growth in India
Decathlon opened its first store in India in 2009 and reported ₹3,955 crore revenue in FY23, up from ₹2,936 crore in FY22 and ₹2,079 crore in FY21, according to regulatory filings.
Rising Demand for Sports Brands
Leading sports brands like Puma, Decathlon, Adidas, Skechers, and Asics have grown 35-60% year-on-year since FY21, with combined revenues reaching ₹11,617 crore in FY23. Two years ago, these brands had combined sales of ₹5,022 crore.
Decathlon’s Future Plans
Decathlon is in talks with the Indian government to allow it to sell products from rival local and global brands in its stores, aiming to operate as a multi-brand retailer. Currently, Decathlon sells only its own label products in India due to FDI rules.
India’s Growing Market
With a population of 1.4 billion, India is one of the fastest-growing and largest markets for sportswear and footwear. Global brands, present in India for over two decades, have grown by sponsoring cricket and other sports activities.
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