Desport, a chain comprised of former Decathlon stores in Russia, has started leasing some of its stores to fitness centers, sports schools and retailers that sell related products. The retailer offers between 100 and 500 sqm of sales floor in 30 stores in major Russian cities. The average space of the outlets where such a move is made is 3,700 sqm.
Dmitry Strakhov, CEO of Desport, said that Desport’s rent rates offered to its partners will be noticeably lower than the market average. In exchange, the company expects to increase revenue thanks to the synergy with its tenants. The company estimated that if the strategy is applied, it would expand customer traffic by nearly 10 percent.
The first stores utilizing the new concept are already up and running. For example, Desport in Togliatti already houses a football school, a St. Petersburg store in the Zhemchuzhina shopping center has a martial arts hall and Desport in Moscow has a Garmin travel goods store.
Mikhail Burmistrov, General Director of Infoline-Analytics, assumed that additional tenants could turn the Desport stores into “a small shopping center with additional services.” He added that the idea of lending sales floor makes sense since Desport ended up with an excessive space after taking over the former Decathlon business in Russia. Only some people, however, are confident the idea will pay off. Alexey Vanchugov, Managing Partner of Vanchugov and Partners, a Moscow-based law firm, indicated that the strong brands on the market will not rush to rent space from Desport, which still lacks recognition.
Decathlon sold its business to Russian company ARM in December 2023. The company said the outlets re-launched under the Desport banner would offer a product range comprising at least 30 percent Decathlon goods.
This is not the first time a sporting goods retailer in Russia has offered a part of its shopping space for rent. In previous years, Decathlon opened several stores of a Russian retailer Kant in a shop-in-shop format. The experiment was eventually wrapped in 2022 when the French company pulled out of the country.
