The Russian Ministry of Industry and Trade announced that the French sporting goods retailer Decathlon had not notified the Russian authorities of its plans to leave the country altogether. A few days earlier, the Russian newspaper Izvestia reported that Decathlon had agreed on the terms of the deal to sell five Russian stores. A Russian government’s commission supervising foreign investments greenlighted the agreement, claiming that these stores “had no strategic importance for the retail chain.” A source from the market told the publication that these stores - none of them in Moscow or St. Petersburg - had the lowest profitability figures of the entire chain. On the other hand, Decathlon is taking steps to expand its presence in larger regions, the source said, adding that last year the company completed the purchase of two properties that it presumably plans to use for new stores. This deal was also approved by the government commission.
In January 2023, Russian media reported that Decathlon began seeking investors to sell its BlueBox stores in the country. However, according to Izvestia, the company found it challenging to find a purchaser after its key competitor Sportmaster refused to buy them.
Currently, Decathlon owns 26 sites in Russia: 25 hypermarkets and one warehouse, according to Mikael Kazaryan, member of the board of directors at the Russian real estate firm IBC Real Estate. He estimates this asset could be sold for up to 8 billion roubles (€90 million). All stores have remained closed since October 2022, but the company keeps paying wages to local employees.
Selling the least profitable stores would be a logical step for Decathlon, trying to bring its chain in order, said Anton Leskin, head of the sales department at another Russian real estate company, Etazhi. He said he didn’t rule out that the company could resume operation under its own brand in Russia. Alexander Peremyatov, president of the Russian think tank Magic Group, also assumed that Decathlon could reopen its doors in Russia, which could explain why the company bought new real estate last year. On the other hand, he said this doesn’t mean that the reopening would happen soon.
Izvestia, citing local analysts, reported that it might be too late for Decathlon to sell its business to local management for a symbolic sum with a buyback option in the next five to seven years, as many other Western companies have done to withdraw from the Russian market. The government commission no longer seems to allow deals in which the assets of Western companies are transferred entirely to local managers.
