Retail Week discovered where the sector’s CEOs love to shop last week and while there were many of usual suspects – breath-taking stores such as Selfridges, Liberty and Paul Smith – a number of bosses opted for Decathlon.
“Decathlon is brilliant,” said Eve Sleep chief executive Cheryl Calverley. “Not least because we can lose three hours on a rainy Saturday as the kids try out the archery, bounce on the trampoline and ride the skateboards.”
Topps Tiles boss Rob Parker agreed: ”Speaking as a customer, it is a category killer with great value on offer and lots of space to showcase new products and create some theatre. As a retailer, I admire the scale of range and depth of own-brand penetration.”
It is not just retail leaders that love Decathlon – shoppers cannot get enough of the giant sports warehouse. Just this week, the retailer revealed gross sales jumped 10% to £277.6m and online revenue rose 18% in 2019.
The French business is consequently planning a clutch of new UK stores before the end of 2021. One of those opened in Aberdeen this week and a store in Leeds is among those planned for next year.
But why is Decathlon so loved by retailers and customers alike?
1. Unparalleled range
Decathlon is a mecca for all sports lovers. The retailer stocks the clothing, kit and accessories for more than 70 sports, spanning everything from archery to water polo.
Despite it covering just about every specialism possible, the retailer appeals to all, not just aficionados.
Decathlon’s aim is to be accessible to everyone, from those taking up a sport for the first time to experts that want top-of-the-range gear.
That is reflected in its product tiers, which are labelled as being ideal for sports fans at beginner, intermediate and expert levels.
2. Innovative product
Decathlon makes all its products itself and puts a big focus on innovation to make sure its offer is top of the range.
It listens to and watches athletes in action, analysing how the body moves, to develop new designs to make sure it’s products are technically excellent.
To achieve that, the retailer often pioneers new materials. For example, its Artengo tennis racket has so-called SoftFeel technology that reduces vibrations by 50%, thereby minimising the risk of tennis elbow.
Meanwhile, if a product receives what Decathlon calls “less than stellar” reviews, it pulls it from its shelves until it finds a way to improve it.
It uses customer suggestions to improve and even build new products, such as its Quechua 2 Seconds Tent. The quick-pitch tent idea came from campers who said they wanted easier and faster ways to set up camp. Decathlon took on the challenge and created the Quechua 2 Seconds Tent.
But even when it comes up with such winning products, it never rests on its laurels and continually looks for ways to improve its ranges.
Ten years after developing the Quechua 2, it created the Fresh & Black tent to make the structure cooler and darker for a better night’s sleep.
- Read more: Where do retail’s top bosses love to shop?
3. Unbeatable prices
Despite its relentless focus on innovation and high-quality products, Decathlon still has market-beating prices, from a padded jacket at £12.99 to a two-man tent for less than £25.
In fact, its mission is for all entry-level products to be priced 15%-20% cheaper than the equivalents stocked by rival Sports Direct.
By selling only own-brands, Decathlon can set its own prices. It tightly manages the design and manufacturing to ensure those processes are as efficient as possible and also controls its own logistics to keep costs down.
Part of Decathlon’s ethos is not to overspend on marketing and it refuses to sponsor sports teams like other big sports brands do. Instead, it invests that money into everyday low prices – a strategy that has reaped rewards with ongoing sales growth.
4. In-store tech that makes a difference
Decathlon’s innovation does not stop at its products. The retailer uses genuinely useful technology in-store that makes the consumer journey faster and easier.
Rather than adopting futuristic technology such as virtual reality and robots, it uses RFID to speed up the checkout process.
Invisible tags on products allow shoppers to simply drop their baskets into a box at the checkout and almost immediately be served with an itemised bill, with no scanning of individual products required.
In May, during the height of the coronavirus pandemic, Decathlon launched cashier-less shopping in Germany and the Netherlands.
The Scan & Go app allows customers to scan and pay for items using smartphones, automatically disabling the RFID security tag so that customers can leave the store without the need to queue or wait at the checkout.
5. Part store, part playground
Decathlon may be famous for its giant out-of-town sheds but that does not mean it cannot make those warehouses amazing places to shop.
The large spaces make them the perfect place for shoppers to try out goods and the store is often full of people scooting, shooting hoops and bouncing on trampolines.
Decathlon’s Surrey Quays flagship stands out among their most experiential locations. The 90,000 sq ft space includes a virtual golf course – with onsite trainers to help shoppers perfect their swing – and a rooftop basketball court.
The retailer has also invested in upping the expertise levels of its store staff. It has resident sports experts in key categories who have a real passion for their chosen sport and participate in their spare time.
They thoroughly research products in their specialist area and have in-depth knowledge to help both tailor Decathlon’s offer and give shoppers expert advice.
Staff are advised to “sell to shoppers like they are your best friend”, meaning they find the best product for customers rather than focusing on a particular price point.
Great prices, innovative product, engaging and efficient shops – the secret to Decathlon’s success is not rocket science. However, the ability to execute all these fairly straightforward things is harder than it sounds –and that is why Decathlon is setting the pace when it comes to store experience.
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