Decathlon Expands with Specialist Brand Acquisitions Amid Industry Shakeout

French sports retailer Decathlon is targeting specialist brands for acquisition to expand its offerings. CEO Barbara Martin Coppola revealed the strategy aims to leverage post-pandemic market conditions. The company has recently acquired German retailer Bergfreunde and is eyeing other opportunities across Europe.

French sports retailer Decathlon is targeting specialist brands for acquisition to expand its business, leveraging the post-pandemic market shakeout that has made many firms attractive targets, according to CEO Barbara Martin Coppola.

The company, known for affordable sports gear, recently acquired German climbing retailer Bergfreunde for hundreds of millions of euros. Its newly established division, Decathlon Pulse, aims for additional acquisitions, particularly in Europe and beyond. Martin Coppola noted many companies with unique offerings are currently in precarious market positions.

A surge in demand for exercise-related apparel and equipment during the Covid pandemic boosted sales for such brands, but the subsequent return to normalcy left many with excess inventory. Brands like On and Hoka are presenting fresh competition for established players, targeting consumers seeking niche sports products.

Decathlon is enhancing its proficiency in sports like running, cycling, and mountaineering, and increasing its marketing investment, including a debut sponsorship of the Paris Olympics. Decathlon Pulse is set to pursue acquisitions in higher-end markets not already serviced by its core business offerings.

In her two-plus years as CEO, Martin Coppola has also focused on emerging business models such as second-hand sales and leasing, which have shown considerable growth. With sales reaching 15.6 billion euros in 2023 and a profit of 931 million euros, Decathlon is reducing its brand portfolio from 80 to 12.

Operating 1,750 stores worldwide, with significant markets in France and China, Decathlon Pulse has 300 million euros designated for venture capital investments over the next four years. This builds on the 400 million euros already invested in 21 companies since 2018, including Bergfreunde and French cycling gear retailer Alltricks.

Martin Coppola describes Decathlon Pulse as an extension of ongoing initiatives, now with increased resources and momentum. ($1 = 0.9240 euros)