Decathlon to indigenise 85%, add 148 more stores by 2026

Global sports retailer Decathlon has set its sights on expanding its footprint in India with a robust ₹1,000 crore investment plan, aimed at capitalising on the country's burgeoning sports culture and young demographics.

Speaking about the investment, Decathlon's chief business & countries officer, Steve Dykes, emphasised India's unique market dynamics, saying, “We see a huge opportunity to create and cultivate a sporting culture in India, driven by its young, energetic population and diverse urban landscapes. Cities here are more like countries, each with its own unique needs and opportunities.”

As part of its strategy, the French retailer intends to increase its store count from 127 to 275, optimising its retail presence across metro cities and tier-three locations, while bolstering its supply chain resilience. A key focus of the expansion includes a diversified approach to store formats. The company is introducing “connect stores” in dense urban locations, featuring popular products for quick pick-up, alongside larger stores in outer-city locations that include playgrounds and spaces for community engagement. “We want to make sports accessible to all, whether through our smaller city stores or large flagship outlets with sports facilities. The goal is to provide customers with a unique, integrated sporting experience,” says Dykes.

Decathlon is also set to ramp up its domestic production from 68% to 85% by 2026, driven by a strategy to mitigate supply chain disruptions, reduce costs, and ensure sustainable growth. The company plans to focus on high-performance sports products for both local and global markets, including cricket gear and bicycles. “By increasing local production, we can maintain value pricing, minimise environmental impact, and hedge against geo-political instabilities,” Dykes explains.

However, amid this ambitious expansion plan in India, the question looms large: Can this investment fundamentally reshape the country’s fragmented sporting culture and consumer habits? The French multinational aims to double its footprint to 275 stores by 2026 by reaching deeper into metro cities and smaller towns. However, the journey may not be as straightforward as Decathlon hopes.

India is a complex market where enthusiasm for sports doesn't always translate into active participation or spending on sports gear. A cricket-obsessed nation, it is only in recent years that Indians have begun to embrace fitness, running, and adventure sports. The Indian sports equipment market is expected to grow to $6.6 billion by 2027, as per data by InvestIndia. Yet, challenges remain — from a lack of sufficient public sports infrastructure to entrenched social norms that don’t prioritise sports as a lifestyle.

Decathlon’s decision to increase its local production from 68% to 85% by 2026, for instance, is as much a response to India’s intricate import tariffs and supply chain challenges as it is about creating affordable sports gear. But it’s also a gamble on whether domestic manufacturers can deliver both the quality and quantity needed to support such a massive scale-up.

“Our goal is to be in close proximity to 80% of India's urban population by 2026,” says Dykes while adding, “India is not an easy market. But we see it as a long-term investment. We are here to stay and grow.”