Big box sports gear and equipment outlet Decathlon to open Auckland store

Friday, 14 June 2019

French sportswear giant Decathlon has been shipping to New Zealand customers through its online site since 2017. It has about 24 in-house brands.

The sporting goods market in New Zealand is set for a significant shake-up, as large foreign players Decathlon and Mountain Warehouse ready for expansion.

Stuff understands French giant Decathlon will shortly announce plans for an Auckland store to test the local market, before opening additional stores.

UK-based Mountain Warehouse, which has two Queenstown stores, is also preparing to expand across the country.

'Mountain Warehouse is shopping for leases. They'll roll though the main centres: Auckland, Wellington, Christchurch, and Dunedin,' said Chris Wilkinson, managing director of Wellington-based First Retail Group.

The market for sporting and outdoor goods in New Zealand is dominated by a handful of domestic players like Rebel Sport, owned by the Briscoe Group.

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Decathlon first opened in Australian in 2016 and currently runs five stores.

Wilkinson described Decathlon's announcement as 'imminent.' Decathlon Australia did not respond to a request for comment.

Mountain Warehouse couldn't be reached for immediate comment.

The market for sporting and outdoor goods in New Zealand is dominated by a handful of domestic players, including: Christchurch-based Kathmandu; Rebel Sport owned by Briscoe Group; Torpedo7, owned by The Warehouse Group; and, specialty outdoor player Hunting & Fishing.

Macpac, owned by Super Retail Group of Australia, also operates some 27 New Zealand stores.

Brian Walker, CEO and founder of Australia-based Retail Doctor Group, described Decathlon as a 'significant competitor'.

'They'll shake-up how things are done.'

Decathlon is known for its more than 1,200 large format stores around the world (some as big as 35,000 square metres), which include 'activity stations' where customers can try out a wide range of sports equipment from bikes and skateboards to basketballs and surfboards.

Wilkinson said that Decathlon could still take as long as 18-to-24 months to open its doors in New Zealand if it opts for a new building site. However, existing space could be reconfigured in as little as six months.

David White, partner with Deloitte in Australia and a retail industry specialist, said Australians are still discovering Decathlon's offerings, which include low prices across close to two dozen in-house brands.

Decathlon first opened in Australian in 2016 and currently runs five stores, with two full stores in both Sydney and Melbourne, as well as a fifth smaller location in Melbourne. It has been shipping to New Zealand customers through its online site since 2017.

Mountain Warehouse has 330 stores centred in the UK, Europe and North America, selling equipment and clothing for outdoor activities including camping, skiing and cycling.

Last year, private equity firm Inflexion bought a 20 per cent stake in the company for roughly NZ$87 million. Inflexion said the investment was aimed at boosting aggressive international and digital expansion.