Decathlon considers selling a minority stake in its thriving China business, aiming for a valuation of over $1 billion in this strategic move.
Ladies and gentlemen, gear up for a sporting spectacle! Decathlon, the French sporting goods behemoth, is contemplating a spirited dance with a strategic partner in China. Word on the street is they’re thinking of selling a minority stake in their Chinese venture, and the stakes are high, my friends.
The rumor mill has it that Decathlon is twirling around with advisers to make this happen, and if the stars align, this could mean a price tag of at least $1 billion for their China unit. Yep, you read that right – a billion dollars! But shhh, it’s a hush-hush affair, and the folks whispering these secrets prefer to remain incognito.
Now, don’t get ahead of yourself; these are just early sparks of an idea. Decathlon could very well decide to put this plan back in the locker. They’ve got their options open, and a representative for Decathlon has given us a cheeky wink and declined to spill the beans.
This grand plan is unfolding in a backdrop where other foreign retail brands are waltzing their way through their operations in China. The country’s economic growth might be taking a leisurely stroll lately, but there’s still a spark in consumer spending. However, the looming property crisis is casting shadows of doubt on Beijing’s growth target of 5%.
We’re not the only ones hitting the dance floor. Procter & Gamble is tuning into its hair-care brand VS Sassoon’s melody for Chinese options. Tyson Foods, the heavyweight champ of meat in the US, is even pondering a sale of its China unit. And Japan’s convenience store sensation, Lawson Inc., is also twirling in China’s strategic ballroom.
Decathlon, the star of the show, is part of the galaxy of retail brands ruled by the illustrious Mulliez family in France. Founded by the visionary Michel Leclercq in a parking lot in northern France in 1976, it’s now a colossal empire with sales reaching a whopping $16.3 billion in 2022.
Their journey in China began in the ’90s, and they quickly established themselves as a key player with over 300 outlets across 100 major cities. China has become Decathlon’s second-largest market, with a whopping 25 million strong customer base, and a staggering 15 million of them being active members.
As they set their sights on new horizons, Decathlon vows to invest €100 million in India over the next five years. Plus, they’ve got some fancy footwork in mind, selling and leasing back stores valued at about €700 million. It’s all part of the grand plan to keep the sporty spirit alive and kicking.
So, there you have it, folks! Decathlon is taking center stage in China, and the show promises to be nothing short of a sporting spectacle. Grab your tickets and watch this space for more dance moves from the world of business!
