Two giant international sports retailers are set to enter the ring in Australia, lured by a strong and growing trend for health and wellbeing, exercise and outdoor activity.
Associate Professor Gary Mortimer from QUT Business School said French sporting goods retailer Decathlon was heading to Australia, with British retailer JD Sports hot on its heels.
“Decathlon is likely to be the sporting goods category killer,” Professor Mortimer said.
“It’s the Aldi of sporting goods retailers with its own private label items comprising 60 percent of its sales. Decathlon operates a big box platform and generates almost $12 billion in revenue across 1100 stores.
“It’s a global powerhouse that will shake up the sports retailing market.
“Almost 30 per cent of the Australian market is dominated by Super Retail Group which own Rebel, A-Mart Sports, BCF, and Rays Outdoors. They would have the most to lose as these players enter.”
Professor Mortimer said Australia presented attractive opportunities as we spend more than $4 billion a year on sporting, leisure and fitness goods, plus $2 billion on sports clothing and footwear.
“Our warm Australian climate and love of outdoor leisure activities, like camping, fishing and boating looks like a lucrative market for global sports players like Decathlon and JD Sports," he said.
“We have seen international retailers enter the market more aggressively over the past five years, predominantly in the ‘fast fashion’ sector, such as H&M, Zara, Top Shop and Uniqlo.
“It seems quite logical that another ‘untapped’ sector is set for a shake up from overseas entrants.”
“JD Sports has signalled its intention to acquire Australian retailer Next Athleisure which owns and runs about 30 Glue Store cutting-edge youth fashion outlets and also has franchise rights to operate the UK Topshop businesses in Australia.
“Entry via acquisition is not new, customers don’t usually notice. Last year, for example, US retail consignment store giant TJ Maxx purchased Trade Secret stores.”
Media contact: Niki Widdowson, QUT Media, 07 3138 2999 or n.widdowson@qut.edu.au
After hours: Rose Trapnell, 0407 585 901 or media@qut.edu.au
