French retailer Decathlon is undergoing a global repositioning. (Pascal Guyot/AFP via Getty) … [+]
France-based sports retailer Decathlon today announced that it achieved strong economic performance last year as the company further strengthens its rebrand last month and aims to further promote its position as the world's third-largest sports retailer. announced.
Decathlon's 2023 revenue increased 4.4% compared to 2022 at constant currency. Adjusted for exchange rates and the impact of the closure of Decathlon's commercial operations in Russia, sales increased 1.15% to $16.9 billion.
Digital sales accounted for 17.4% of the group's revenue, an increase of 7bps from 2022, and the group's net profit reached just over $1 billion.
Last month, Decathlon revealed its new purpose to “move people through the wonders of sport” and the strategy behind its new ambition to “bring innovative and sustainable sport to everyone.”
These changes are designed to compete with big brands like Nike.
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Regarding the new strategy, Decathlon added: “This purpose-driven, ambitious global strategy includes an enhanced immersive customer experience, a strong commitment to sustainability, and modernization across the company.”
The company announced a new brand identity that includes an “orbit” icon that represents “movement, ambition to reach new heights, and circularity.”
Decathlon brand renewal
As part of that process, Decathlon is simplifying its brand portfolio to nine category specialists. Tri board for water and wind. His Rockrider for outdoor cycling. Domios for fitness. Kuikma for racket sports. His Kipsta for team sports. Wildlife capel orchid. His Btwin for urban gliding and mobility. And the target is Inesis.
The retailer's website will also be revamped globally to provide customers with a more seamless shopping experience, the company said.
As part of the overhaul, more than 1,700 stores worldwide will be renovated to offer customers “intuitive navigation, improved product visibility, attractive physical and digital displays, and an aesthetically pleasing ambiance.” It's planned.
And the company was keen to boost performance amid global turmoil and the closure of its Russian operations.
Decathlon repositions itself as a sports specialist with a simple brand.
“In 2023, businesses around the world operated in unprecedented circumstances. At Decathlon, we decided to use this moment for action and change. We are building many foundations for the future. We are pleased with the results we have achieved. This is a testament to the dedication and dedication of our teammates,” Decathlon CEO Barbara Martin Coppola said of the latest results.
“We are very proud of the fact that we have been able to significantly reduce our CO2 emissions while maintaining revenue growth. This is an absolute priority for Decathlon as part of our commitment to protect our shared playgrounds. ” she added. “In 2024, we will launch new ambitions and a fresh brand, putting Decathlon on a strong trajectory to 'inspiring people through the greatness of sport' and building a happier, healthier society. I did.”
Decathlon promotes circularity
The sports retailer is moving ahead with initiatives such as renting and buying back unwanted products, and has also vowed to put sustainability at the heart of its business model as it pledges to become net zero by 2050. .
Decathlon said it is working with industrial partners to decarbonize processes and pave the way for new business models based on circularity and extending product life cycles. Decathlon extends product life across its product range, enabling customers to reuse, repair and recycle their products. Decathlon has reduced its absolute CO2 emissions by 10% for the second year in a row (compared to its 2% reduction in 2022).
Furthermore, 39% of products sold benefit from an environmentally friendly approach (23% in 2022). The company said its circular sales last year were $456 million, an increase of 27% compared to 2022.
Decathlon has a presence across retail and manufacturing in 78 regions around the world and employs approximately 101,000 people.
