Auchan opens first retail store -- Decathalon

French group Auchan has announced opening of its first

retail store, Decathalon, in Bangalore, the first big-format niche retail chain in India. The 43 billion euros (Rs 30,028 crores) French group’s venture is one of the early bird licences under a new investment policy which allows 100 per cent foreign funding of single-brand retail stores.

Auchan’s proposal to invest Rs 700 crores got a nod on February 13, the same day that the FIPB also cleared single-brand retail plans of Promod SAS, Le Creuset and Fossil. Most of Decathalon’s stores now sport an ‘open to all’ sign to indicate the change in its policy. The company does not have a clear competitor as the sports goods retail market in India. It has been present in the wholesale market with a cash-and-carry model for the past three years. This would be the first test of big-format retail’s impact on small merchants in a niche segment.

Decathalon stores are big, sprawling over at least 4,000 sq. ft. compared to other sports goods shops in the country. Even in malls or supermarkets, sports goods get only a corner, about half the area of a typical Decathalon store. It uses the extra space for indoor sporting facilities.

The company opened a store in Mumbai last week and plans to open in Hyderabad and Chandigarh too. About 3,000 customers thronged the store on the first day. That is a big draw for a niche segment currently valued at Rs 2,500 crores but estimated to grow to 6 billion dollars (Rs 32,562 crores) by 2025 in India.