Reliance Retail to Challenge Decathlon with New Sports Retail Format

Reliance Retail, a Mukesh Ambani’s conglomerate subsidiary, is gearing up to challenge French retailer Decathlon with a new sports retail format.

The Economic Times reports Reliance Retail plans to lease 8,000-10,000 sq ft spaces in prime locations across major Indian cities for a yet-to-be-named brand.

This move aims to capitalize on the booming athleisure market and emulate Decathlon’s successful business model.

Decathlon Growth and Market Potential:

Decathlon has seen substantial revenue growth since its India debut in 2009, reaching ₹3,955 crore in FY23 from ₹2,936 crore in FY22.

Decathlon’s Chief Retail and Countries Officer, Steve Dykes, emphasized India’s potential to become one of the company’s top five markets globally for athleisure, citing India as a “priority market.”

The company plans to continue opening ten stores annually, tailored to each city’s unique characteristics, while also enhancing its online presence to strengthen its digital footprint in India.

Competition and Market Dynamics:

Alongside Decathlon, other leading sports brands like Puma, Adidas, Skechers, and Asics have also experienced significant growth in the Indian market.

Decathlon’s strategy involves maintaining a steady pace of store openings and customizing offerings to local preferences, reflecting the diverse nature of Indian cities.

Reliance Retail Expansion Plans:

Reliance Retail’s foray into the sports retail segment follows its recent initiative to bring the Chinese fast-fashion label Shein back to India.

Shein, a globally recognized brand, was banned in India in 2020 amid rising border tensions and a crackdown on Chinese apps.

Reliance Retail’s strategic moves indicate a broader ambition to diversify its portfolio and capture a significant share of the Indian retail market.