Decathlon India to hit 170 stores by 2027, rolls out circular model

Business Standard

3 days ago

Decathlon India aims to take its store count to 170 by 2027 and intends to add more than 10 stores this year. The sporting goods retailer currently has 133 stores across 50 cities and towns, and is also working on modernising its existing stores in a big way, Sankar Chatterjee, chief executive officer (CEO), Decathlon India, told Business Standard in an interview.
'We don't depend only on physical expansion, even though that (physical outlet) is our bread and butter. At the same time, our digital footprints are also expanding significantly. We also have our own direct-to-customer (D2C) channel, which is more or less 12-13 per cent of business share and contributes around ~500 crore of business,' Chatterjee said.
The company on Wednesday launched its circular business model in India. This model will include repair services, which will be available in over 95 stores, resale of its refurbished products in more than 90 stores, and buyback of used equipment in over 50 stores, the company said in its release.
This will eventually be scaled up across all its stores and will be made available online as well.
'We saw an angle, which is gaining traction about consciousness, and the next generation gets a better environment, our kids get better products, which are linked to the environment, and our customers have really appreciated this move,' Chatterjee said, adding that the circular business model is really important for Decathlon as a group.
European countries were more advanced than India today in circularity, hence it was not a new topic for the company, Chatterjee said.
Annie George, leader-sustainable development, Decathlon India, explained: 'To shift from a linear model to a circular model, the entire ecosystem has to shift and a systemic change has to happen.'
She added, 'All stores don't have the same level of repair, there will be a different level according to the need of that city, the need of that store, and also, of course, the range that goes in that store. So, repair has been something that has been existing. We find our customers warming up to it.'
George explained that buybacks could be at a discount of 20-30 per cent, which could go up to 50 per cent.
Products that would be sold under the circular business model would be under the category of 'Second Life' at the stores. Repairs were across four segments. Customer returns were under a bigger typology, George said.