Decathlon is continuing to expand its online and international business, with a strategy that makes use of diverse retail options to move into new emerging markets and to expand its reach in established markets such as the U.K. and Norway.
Among the latest moves, Decathlon told reporters after the formal opening of a store in Kuala Lumpur a few weeks ago that it intended to open about 60 stores in, Malaysia. It was the third Southeast Asian country where Decathlon set up shop since last year, after Thailand and Singapore.
Decathlon reportedly intends to open ten Malaysian stores in the next three years, as part of wider plans to raise the number of stores to 3,000 in the next ten years. This compares with 1,030 stores at the end of last year, when they generated sales of €9.1 billion excluding sales taxes.
The store in the Malaysian capital of Kuala Lumpur measures 2,500 square meters. It started trading in May, at the same time as an online Decathlon store for Malaysia. Decathlon said the store is situated on one of the roads leading to the largest cities in the northern part of the country.
The French retailer's chief executive in Malaysia is Tom Meng, who managed Decathlon in China until four years ago and went on to lead Decat in France and Spain. The opening in Malaysia was prepared in partnership with Decathlon's staff in France, Singapore and China.
The Norwegian market, where Decathlon sold its fitness equipment to XXL in the past, is being targeted with an online store. It was launched in May after a delay of about one year and is in English for the time being. Dagens Næringsliv, a local newspaper, reports that Decathlon has no immediate intention to open a physical store in Norway.
The approach comes as online sales of sporting goods continue to rise rapidly in Norway. The report mentions a recent survey from Virke and Post Nord, estimating that sports retailers reaped online sales of 1.6 billion Norwegian kroner (€173m- $196m) last year, an increase of 18 percent.
Decathlon's expansion has been relatively tepid in Scandinavia, with the opening of a store in Stockholm three years ago and the second opening in Barkarby earlier this year. This contrasts with the rapid expansion of XXL, a potentially strong low-cost competitor, which opened 20 large-scale stores in Sweden in the last six years. XXL itself as opted for a start online in Denmark earlier this year.
To expand its reach in the British market, where it had 19 stores at the end of 2015, Decathlon has sealed an agreement that will enable British consumers to pick up their orders at more than 1,100 fully automated parcel lockers. The lockers are permanently accessible and situated in locations with ample parking space, such as large-scale stores, petrol, railway and tube stations.
Decathlon previously opened small inner-city locations to support its click and collect function. The deal with InPost UK makes it all the more flexible for British customers, enabling them to pick up orders outside of working and store opening hours.
