News dalla rete ITA

24 Novembre 2020

Australia

WHY DECATHLON IS DEVIATING FROM ITS PAST STRATEGY

Global sporting goods company Decathlon is tweaking its strategy in Australia, signing partnerships with brands and businesses such as Speedo, eBay and DHL, in an attempt to take a bigger share of the $6.8 billion sports equipment and apparel market.In a deviation from its past strategy of selling mostly private label products in its own bricks and mortar and online stores, Decathlon Australia is opening a store on ebay.com.au and will sell its wetsuits on the Surfboard Warehouse's website after launching the Surfboard Warehouse concept store in its Tempe store in Sydney.Decathlon has also signed up brands including Speedo swimwear and Black Wolf camping and outdoor equipment so its range of mostly private label brands better suits the needs of Australian consumers.As online sales surge, Decathlon has teamed up with DHL Supply Chain to deploy autonomous mobile robots – dubbed Decabots – in its Sydney warehouse. The 16 robots, supplied by global technology giant Körber, bring products from warehouse shelves to human pickers and packers. They will reduce costs and double Decathlon's online distribution capacity.Decathlon's online sales doubled during the pandemic amid a boom in demand for fitness equipment and bikes as consumers attempted to stay fit during the lockdown. Decathlon Australia managing director Olivier Robinet expects similar growth this calendar year.However, after opening just five stores in three years, Mr Robinet says the retailer, which competes with Super Retail Group's Rebel, BCF and Macpac chains and with Kathmandu, needs to grow faster to achieve scale.Decathlon (Australia) Pty Ltd accounts lodged last month with the corporate regulator show that sales almost doubled in the 12 months ending December 2019, rising to $31.9 million from $17.3 million in 2018. However, pre-tax losses blew out to $20.3 million in 2019 from $10.8 million in 2018 as staff costs and cost of goods rose, taking accumulated losses since 2017 to $42.3 million.The accounts were prepared on a going concern basis after Decathlon's French-based parent provided a letter of financial support. Decathlon also injected another $25 million of capital into the Australian business, taking paid-up capital to $43 million. It was forced to close stores in Melbourne and Sydney temporarily during the lockdowns, enabling it to qualify for JobKeeper. It also suffered supply chain delays after the Decathlon warehouse in Malaysia and support teams overseas were shut down because of the pandemic.However, the company was able to limit the impact of COVID-19 thanks to its online store, where sales rose 200 per cent between March and May 2020. (ICE SYDNEY)


Fonte notizia: Financial Review 18.11.2020