In the ever-evolving world of sports retail, the line between short-term success and long-term impact is a delicate balancing act. For companies like Decathlon, the journey from striving to thriving isn’t just about profitability—it’s about creating value that endures.
While Patagonia has long set the gold standard for sustainability and stakeholder well-being, Decathlon’s ambitious initiatives signal its intent to join the ranks of companies making a meaningful difference. Through strategic reinvestments, circular economy innovations, and a commitment to sustainability, Decathlon is charting a path that seemingly aligns well with the Thrive phase of the RoundMap Strive & Thrive Cycle—prioritizing long-term impact while addressing immediate challenges.
But is Decathlon doing enough? As the company unlocks liquidity through strategic moves like sale and leaseback transactions, the real test lies in how that capital is used. Will it fuel innovation, sustainability, and employee empowerment? Or will it become another example of short-term gains undermining long-term resilience?
Let’s explore how Decathlon is striving to thrive and the hurdles it must overcome to match the legacy of brands like Patagonia.
Sustainability: A Step in the Right Direction
Decathlon has made significant strides in sustainability, embracing eco-design, circular economy initiatives, and carbon reduction targets. The company aims to have 100% of its products eco-designed by 2026, a leap from just 5% in 2019. Initiatives like repair workshops, buy-back schemes, and product rentals reflect Decathlon’s commitment to extending product lifecycles and minimizing waste.
However, achieving net-zero emissions by 2050 remains a formidable challenge. While steps such as reducing CO₂ emissions by 20% by 2026 are commendable, Decathlon’s global manufacturing and distribution networks continue to pose environmental risks. Unlike Patagonia, which has fully embedded regenerative practices and climate activism into its DNA, Decathlon still has ground to cover in aligning all aspects of its operations with sustainability goals.
To thrive in the long term, Decathlon must scale its sustainability efforts with the same rigor it applies to its product innovation. This includes addressing supply chain emissions, investing in renewable energy, and advocating for systemic changes across the industry.
Decathlon is actively advancing product sustainability through a comprehensive approach that encompasses eco-design, repairability, and circular economy initiatives.
Eco-Design and Material Innovation
Decathlon integrates environmental considerations into product development to minimize impact throughout the product lifecycle. By 2026, the company aims for 100% of its products to be eco-designed, a significant increase from 5% in 2019. This involves using renewable, recycled, and raw-recyclable materials, as exemplified by the Arpenaz 10L backpack, which utilizes an innovative manufacturing method to reduce assembly time and material usage.
Repairability and Product Longevity
Enhancing product durability and repairability is central to Decathlon’s sustainability strategy. The company designs products with increased durability and provides repair services and spare parts to extend product lifespan. For instance, the ITIWIT kayak achieves a 15-20% CO₂ reduction through dope-dyed components and boasts a 94% repairability rate, offering self-repair options or access to dedicated workshops.
Circular Economy Initiatives
Decathlon is committed to scaling circular economies and eliminating waste by promoting second-life products, product rentals, repairs, and recycling solutions. The company has launched product rental services in 17 markets and operates in-store repair workshops, which repaired 2.77 million products last year. Additionally, Decathlon’s buy-back scheme allows customers to exchange items for redeemable vouchers or direct payment, with bought-back products often used in rental schemes, fostering a more circular business model.
Commitment to Carbon Reduction
Decathlon has set ambitious targets to reduce its absolute CO₂ emissions by 20% by 2026 compared to 2021 levels. This involves saving energy, favoring renewable energies, creating longer-lasting products, and embracing repair and reuse practices. The company is also working towards achieving net-zero emissions by 2050, aligning with global climate goals.
Through these initiatives, Decathlon demonstrates a holistic commitment to sustainability, integrating eco-design, product longevity, and circular economy principles to reduce environmental impact and promote responsible consumption.
Employee Well-Being: Progress and Opportunity
Decathlon’s employees often praise its collaborative, sports-centric culture and opportunities for personal growth. With a Glassdoor rating of 4.0 out of 5 and a recommendation rate of 80%, the company demonstrates a positive workplace environment.
Yet, concerns about compensation and work-life balance suggest that there’s room for improvement. Thriving as an organization means ensuring that employees across all levels feel valued—not just through engaging work but also through equitable pay and benefits. Patagonia’s employee programs, such as childcare support and flexible working policies, set a benchmark Decathlon could aspire to meet.
By prioritizing employee well-being alongside operational growth, Decathlon can cultivate a workforce that is motivated to drive its long-term vision forward.
Decathlon embarked on an ambitious journey to co-create its Vision 2030 by engaging its extensive ecosystem of employees, customers, and partners. This initiative aimed to collaboratively shape the company’s future direction, ensuring alignment with the evolving needs and aspirations of its stakeholders.
Initiation of Vision 2030
Building upon a previous vision exercise for 2026, Decathlon sought to develop a more inclusive and forward-thinking strategy for 2030. The company partnered with bluenove, a firm specializing in collective intelligence, to facilitate this expansive consultation process. The collaboration involved utilizing bluenove’s Assembl platform, which supported multilingual engagement across 14 languages, enabling contributions from Decathlon’s global community.
Phases of Co-Creation
The Vision 2030 initiative unfolded in several key phases:
- CO-INSPIRE: Launched in October 2019, this phase invited Decathlon’s 92,000 employees across 57 countries to share ideas on themes such as the future of living, people, and sports. The engagement was bolstered by 250 ambassadors who organized workshops and facilitated discussions, resulting in over 10,000 ideas.
- CO-EXPLORE: Beginning in January 2020, the conversation expanded to include external stakeholders, including customers and partners. This phase focused on exploring four key themes: shaping the future of humanity, technological and environmental changes, fundamental pillars and vital changes, and the shift from “I” to “we.”
- CO-WRITE: Initially planned for April 2020, this phase aimed to synthesize insights and draft the Vision 2030 document. However, the onset of the COVID-19 pandemic necessitated a shift to fully digital workshops, maintaining momentum despite global disruptions.
Transition to Vision 2021
In response to the unprecedented challenges posed by the pandemic, Decathlon recognized the need for immediate action. Consequently, the company accelerated its strategic timeline, transforming Vision 2030 into Vision 2021. This adjustment reflected a commitment to promptly address emerging trends and societal shifts, emphasizing agility and responsiveness.
Outcomes and Impact
The collaborative process not only produced a strategic vision but also reinforced Decathlon’s culture of inclusivity and innovation. By engaging a diverse array of voices, the company ensured that its future direction was both comprehensive and reflective of its global community’s aspirations. This approach exemplifies Decathlon’s dedication to collective intelligence and stakeholder-driven leadership, aligning with principles of whole-system thinking and adaptability.
For a visual overview of Decathlon’s innovative approach to sports retail and its Vision 2030, you may find the following video insightful:
Financial Strategy: Leveraging Liquidity for Growth
Decathlon’s recent sale and leaseback of 82 stores unlocked €527 million in capital—a strategic move aimed at funding digital transformation, sustainability initiatives, and market expansion. While this aligns with the Strive phase of the Strive & Thrive Cycle, where short-term resources fuel immediate goals, the challenge lies in using this liquidity to support the company’s Thrive objectives.
History offers cautionary tales, such as the Dutch retailer V&D, whose similar financial strategies led to increased rent burdens and eventual bankruptcy. Decathlon’s success will depend on its ability to avoid over-leveraging and to reinvest in ways that enhance resilience, such as advancing its circular economy model and expanding its footprint in high-potential markets like India.
Stakeholder Impact: A Balancing Act
Decathlon’s ecosystem of stakeholders—from customers and employees to suppliers and local communities—is vast and varied. For customers, the brand delivers affordable, quality products that promote active lifestyles. Suppliers benefit from Decathlon’s global scale, but they also face pressures to meet sustainability and cost targets.
The company’s sustainability initiatives have clear environmental benefits, yet its operations still contribute to resource consumption and emissions. Local communities gain jobs and economic stimulation but may also face challenges from large-scale retail operations. To thrive, Decathlon must continuously balance these impacts, ensuring its growth benefits all stakeholders equitably.
Strive & Thrive Performance Ratings
The Strive & Thrive Cycle offers a unique lens to evaluate a company’s performance by balancing two critical aspects:
- Striving: Reflects the company’s ability to generate profits, maintain financial health, and meet short-term goals.
- Thriving: Reflects the company’s long-term impact, including sustainability, purpose-driven initiatives, and stakeholder well-being.
Using a 1-5 scale, here’s how Decathlon rates:
- Striving (Profit): 4/5
Decathlon demonstrates strong financial health, with €15.6 billion in revenue and €931 million in net profit in 2023. Its strategic reinvestments, digital sales growth, and market expansion reflect robust profitability.- Why not 5? Reliance on sale and leaseback strategies introduces financial obligations that could impact long-term resilience.
- Thriving (Purpose): 3/5
Decathlon has made impressive progress with eco-design, circular economy initiatives, and ambitious sustainability goals like achieving net-zero emissions by 2050. However, gaps remain in employee well-being, and the sustainability impact of its global supply chain still needs improvement.- Why not higher? While efforts are commendable, Decathlon lags behind leaders like Patagonia in embedding purpose and sustainability across all operations.
Conclusion: Room to Thrive
Decathlon scores higher on Strive, reflecting its financial success and operational scale. However, it has room to grow on Thrive, where Patagonia’s deep commitment to purpose sets the benchmark. For Decathlon to match Patagonia’s legacy, it must deepen its sustainability efforts, improve employee well-being, and consistently prioritize long-term impact over short-term gains.
The Road Ahead: From Strive to Thrive
Decathlon is undoubtedly on a transformative journey, striving for operational excellence while laying the groundwork for long-term impact. By reinvesting strategically, scaling its sustainability initiatives, and prioritizing employee and stakeholder well-being, the company has the potential to thrive as a leader in ethical and sustainable sports retail.
However, the journey isn’t complete. To match Patagonia’s legacy and truly embrace the Thrive phase of the Strive & Thrive Cycle, Decathlon must address its remaining gaps with urgency and purpose. It must ensure that every decision—whether unlocking liquidity, designing products, or supporting employees—aligns with a vision of ethical prosperity for all.
The world of sports retail is changing, and Decathlon has the tools to lead. The question is: will it rise to the occasion?
Decathlon by the Numbers: A Snapshot of Growth and Impact
Decathlon has demonstrated significant growth and commitment to sustainability. Below is an overview of the company’s key statistics:
Company Overview
- Founded: 1976
- Headquarters: Villeneuve d’Ascq, France
- CEO: Barbara Martin Coppola
Global Presence
- Number of Stores: 2,082 in 79 countries (as of 2024)
- Employees: Approximately 101,000 (2023)
Financial Performance
- Revenue: €15.6 billion in 2023
- Net Profit: €931 million in 2023
Sustainability Initiatives
- Eco-Designed Products: Targeting 100% by 2026, up from 5% in 2019
- Carbon Emissions Reduction: Aiming for a 20% reduction by 2026 compared to 2021 levels
- Net-Zero Emissions Goal: By 2050
Digital Transformation
- Digital Sales Contribution: 17% of total revenue in 2022
Recent Strategic Moves
- Sale and Leaseback Transaction: Sold 82 stores in Europe for €527 million to reinvest in digital transformation, market expansion, and sustainability initiatives
These figures highlight Decathlon’s robust financial health, expansive global footprint, and proactive approach toward sustainability and digital innovation.
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