Reliance Retail reportedly intends to introduce a sports format that will directly compete with French retailer Decathlon in an effort to capitalise on the spike in demand for athleisure items following the Covid-19 outbreak, according to people familiar with the matter. According to them, the corporation is in negotiations to lease 8,000–10,000 square feet of space for the new brand, whose name has not yet been revealed, spanning malls and high streets in major cities.
“While Reliance Retail has expanded a lot in the last few years, sports is something which was missing from the portfolio,” one of them said. “India also needs a retailer in the sports category who can compete with global giants. The category has shown a lot of growth and is expected to grow further.”
According to regulatory records obtained from the Registrar of Companies, Decathlon, which established its first store in India in 2009, recorded Rs. 3,955 crore in revenue in FY ’23, up from Rs. 2,936 crore in FY ’22 and Rs. 2,079 crore in FY ’21. Leading sports businesses have seen a sharp increase in sales over the last two years due to rising athleisure wear demand and increased fitness awareness.
Additionally, Decathlon is in talks with the Indian government to be granted permission to operate as a multi-brand retailer by selling goods from competing national and international companies in its stores.