Decathlon Announces Further Expansion

VILLENEUVE D’ASCQ, France (June 5) - Decathlon plans to open its first Chinese store in Shanghai towards 2003 or 2004. Today it operates 4 factory outlets in China and one in Thailand. By end March Decathlon operated 302 stores worldwide, of which 212 in France with 20,000 employees versus 18,500 by 2000. No new stores have been scheduled in France, although it planned to launch its new smaller downtown pilot shops later this year. During the last year, Decathlon opened 26 new stores, of which 11 in and 15 outside France, while it enlarged 6 domestic stores. Decathlon is closing its stores in Denmark and Argentina, while opening new ones in Poland and Brazil. Decathlon will focus on Portugal with 2 new yet-to-open stores and Poland, following good results at its single outlet. For 2003 the French giant plans to open 15 new outlets in Europe of which 1 new store in Germany, 2 in Belgium, 4 in Spain and 6 in Italy. Further, it is exploring 2 new locations next to its 3 existing ones, running well in Great Britain. On its major markets Spain and Italy, Decathlon is planning in the longer term an increased number of outlets. The French retail giant is to expand its 31 stores to 50 in Spain while Italy will face an extension from 16 to 30 outlets. During 2001 Decathlon added 5 stores each in both countries. The German market has been somewhat struggling, where Decathlon operates 9 stores. In the US a re-branding from its MVP stores into Decathlon is in full swing. There it introduced its private labels with success at value for money ads. The French giant hopes to turn break-even its US-operations towards the end of this year. Today in the US Decathlon revenues are for one third made with private label products while in France the retail giant’s revenues are for 50% realized through the sale of private labels.(FN)