Despite Decathlon’s global reach, Gravigny acknowledged brand awareness in Australia was “increasing but not well-known”. The smaller-format stores are performing well so far, with sales beating forecasts by 20 per cent, according to Gravigny. He hopes the rollout will bring attention to Decathlon’s affordable prices and help endear the brand to locals.

“The love [European] customers have for Decathlon, I would really compare to the love Australians have for Bunnings,” he said. “The connection is really strong.”

The small-format approach represents a step change from that of the former CEO, Olivier Robinet, who launched Decathlon in Australia with plans to open 100 stores and a brought a focus on partnerships with brands and businesses.

The company’s Australian operations have never been profitable: it recorded losses of $24 million for 2023, deepening the losses from the year prior of $18.6 million, which was double that of the $9.3 million recorded the year before that. Revenue fell to $43.9 million in 2023 down from $51.4 million, according to its latest financial report filed to the corporate regulator.

“What you call loss is mostly a transformation cost,” said Gravigny. As a global group, revenue rose 1.2 per cent to €15.6 billion ($25.7 billion), with a 0.8 per cent lift in profits to €931 million ($1.5 billion). Decathlon was founded by French billionaire businessman Michel Leclercq, who owns 40 per cent of the business.

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Decathlon’s biggest local competitors are Rebel Sport, BCF and Macpac, operated by Super Retail Group, which is embroiled in allegations of a toxic workplace, bullying and conflicts of interest. Despite the legal claims, Super Retail Group’s share price has risen after reporting better-than-expected sales since June and a 2 per cent revenue surge for fiscal 2024.

Decathlon has always ducked comparisons to Rebel, pointing out it sells a wider range of sports gear. Gravigny argued Decathlon was complementary, not a competitor, to Rebel, which has a key emphasis on fashion apparel and big brand names.

“Our strategies are really, really different; our focus is more affordability,” he said. “There’s different market positioning from our perspective. That’s how we play here, with our private label, with the best value for money.”

“To be even more affordable – that’s for us the most important topic; how can we make smart, innovative and sustainable sporting goods more affordable?”

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