Two prominent regional players, FLO Retailing, the Turkish group that owns the Russian Reebok operation, and Azadea Group from Lebanon, known for managing the Dubai Mall complex, are reportedly positioned to acquire Decathlon’s Russian business. Negotiations are active, and Vedomosti, citing real estate market insiders and one of Decathlon’s local partners, has shared these developments. The discussions reflect a broader trend of consolidation within the sports retail sector as foreign brands recalibrate their footprint in Russia amid changing market conditions.
Industry sources describe two main routes under consideration for the deal. In the first scenario, a full acquisition of the current Russian network would be followed by launching Decathlon stores anew under a franchising framework. In the second, the same base would be retained but with some outlets shuttered as part of an optimization plan. Early estimates suggest the transaction could stretch into the autumn before a final decision is reached. At this stage, it remains unclear whether other buyers are weighing options for Decathlon’s Russian assets and store network.
Meanwhile, Decathlon has rejected the option of long-term lease arrangements tied to facilities where contract terms could be terminated without clear penalties. One of the company’s partners highlighted that Decathlon still enjoys a buffer that allows time for careful negotiations and strategic planning, underscoring the company’s willingness to preserve value while conversations continue.
Market observers have yet to converge on a single valuation for Decathlon’s assets in Russia. Estimates vary widely: some put the portfolio at three to four billion rubles, while others project a higher range around eight to ten billion rubles. A common caveat among analysts is that investors are likely to focus primarily on properties operating under a non-franchise model, as these assets tend to attract more interest due to direct operational control and clearer revenue streams. This nuance suggests that the franchised elements of the network may present a different risk-reward profile for potential buyers than company-owned locations.
During a recent briefing, Viktor Evtukhov, Deputy Head of the Russian Ministry of Industry and Trade, clarified statements from the French parent about Decathlon’s Russia plans. He indicated that the group had not disclosed a definitive intention to end or sell its Russian business and countered reports that some stores had already changed hands. Evtukhov emphasized that Decathlon continues to honor rent obligations and to compensate employees in Russia, underscoring the brand’s ongoing operational presence despite market uncertainty. These remarks signal that any strategic decision would be measured, taking into account contractual commitments, workforce considerations, and regional market dynamics, while keeping options flexible for the near term.