French sports retailer Decathlon is said to be getting ready to open talks to sell a stake in its China business. This follows increasing interest from prospective investors, reflecting the company’s attempt to rebalance its international strategy and maximize regional expansion.
Decathlon has been a major player in China for several years, running more than 300 stores across the nation. But shifting consumer habits, changing e-commerce patterns, and increasing operational challenges are leading the company to look for new investment partnerships or partial divestment possibilities.
Insiders say early discussions have piqued the interest of domestic and international private equity players. A successful transaction would open the door to quicker, locally-influenced business decisions and greater competitiveness in one of the globe’s biggest consumer markets.
Although no sale has been agreed, the mooted sale of a stake highlights Decathlon’s larger aim to fit into international retail patterns. The move also highlights increasing interest in China’s yet-profitable sporting goods industry, even as overseas retailers re-evaluate their presence in the country.
