Decathlon has acquired a controlling share in Alltricks, a French internet start-up specializing in the cycling, running and outdoor segments. As we understand it, the idea is to further develop the omni-channel capabilities of the world's largest integrated sporting goods retailer and to build up an international platform that can also be used for partnerships with other brands that would complement Decathlon's own private-label offerings.
For Alltricks, Decathlon's involvement will be one way to accelerate the international expansion of its own business. Alltricks has a multi-language website and guarantees deliveries within 24 hours in France, Spain, Italy, Belgium, Germany and the U.K. However, its sales outside France still represent only about 15 percent of its turnover, which is expected to grow to €80 million this year from €65 million in 2018.
The company's Ebitda became positive two years ago, according to sport-guide.com, which gave the news about the investment one day before the public announcement of its takeover, noting among other things that a French Decathlon store at Mérignac had installed an Alltricks corner several weeks ago. Others could serve as collection or service points in the future.
The price of the acquisition has not been revealed. Decathlon is taking over the shares held in Alltricks by various institutional investors and business angels, leaving the founder, Gary Anssens, with a “significant” minority stake. He will continue to serve as the company's chief executive.
Alltricks started up in 2008 as an e-commerce operation for bikes and related equipment and accessories with the goal of offering a wide range of products at the best possible prices. Its diversification into related sports like triathlon, running and mountain sports is more recent.
Alltricks has a warehouse of 17,000 square meters, complemented since 2015 by a physical store at Coignières, west of Paris, plus two service centers, and it makes use of its own marketplace for partnerships with certain vendors, such as Rossignol, Spy, Etnies and Volcom. It boasts 22 million visitors per year. Alltricks can deliver about 200,000 SKUs and stocks some 50,000 SKUs by more than 500 brands including Castelli, Kask, Thule, Shimano, Maxxis, Sram, Mavic, Garmin, Haibike, Oakley and Rockshox, as well as Nike, Michelin and Hoka One One.
Decathlon has 1,560 stores in 55 countries. It is a leading player in the bike sector – the first one in which it started selling products under its own brand 40 years ago – and others. More than 80 percent of its turnover comes from the sale of constantly developed private-label items covering 85 different sports. As previously reported, it has abandoned a previous plan to limit its sales to these affordable products and to bring back the complementary products of other sports brands to its shelves, particularly in countries like France, Italy and Spain, where customers are used to finding them in Decathlon stores.
The company has negotiated a new contract with Adidas under which some of the brand's items will become available in its own stores in these countries over the next few months. Other large and small brands will also be on sale. Like its cooperation with Kant in Russia (see the other article on this in this issue), the partnership with Alltricks should enable Decathlon to create an internet marketplace where external brands will have their place for the benefit of all the parties involved.
