ATHLEISURE IN FOCUS Rel Retail may lease up to 10K sq ft in malls to launch sports format
New Delhi: Reliance Retail is planning to launch a sports for- mat, which will compete directly with French retailer Decathlon to cash in on the surge in athleisure products post pandemic, three people aware of the development said.
The company is in talks to lease 8,000-10,000 sq ft space across malls and high streets for the new brand, the name for which has not been disclosed yet. Decathlon, which opened its
first store in India 2009, reported ₹3,955 crore re- venue in FY23, up from 2,936 crore in FY22 and ₹2,079 crore in FY21, according to regulatory atory II- filings sourced from the Registrar of Companies. in
“While Reliance Retail has expanded a lot in the last few years, sports is something which was missing from the portfolio. India also needs a retailer in the sports category who can compete with a global giant. The category has showed a lot of growth and is expected to grow further,” said one person aware of the deal.
According to a mall operator, the company is looking for space which can be expanded to outside the mall where it can have a play area as well. Reliance Retail did not respond to the email query. Sales of leading sports brands have sprinted in the past two years, during the pandemic and since. They have doubled business in India, driven by increasing awareness about fitness and surging demand for athleisure wear. Brands such as Puma, Decathlon, Adidas, Skechers and Asics have all grown 35-60% year-on- year since FY21, posting combined revenues of ₹11,617 crore in FY23, according to regulatory fi lings sourced from the Registrar of Companies. Two years ago, these brands had sales of ₹5,022 crore put together Decathlon is also in discussions with the Indian government for allowing it to sell products from rival local and global brands in its stores, in effect operating as a multi-brand retailer.
Globally, rival brands account for a fifth of Decathlon’s revenue but in India, everything from running shoes to mountaineering equipment is sold under its own labels, in line with the rules.
“India is one of the biggest markets for these companies and a bigger store format on the lines of-Decathlon can be a game- changer. Brands have capitalised on the popularity of more casual styles in the wake of the pandemic,” said another person.
India is one of the fastest growing and largest international markets for footwear companies.
Most global brands have been around for more than two decades in India and have grown by virtue of pushing their wares partnering cricket and other sporting activities.
Source- The Economic Times
