Decathlon Canada says it is strategically evolving its retail strategy in the Greater Toronto Area, with the closure of five retail locations in Brampton, Burlington, Markham, Scarborough and Vaughan.
The brand said in a statement that it is committed to serving Canadians, and operations will continue in the other 15 stores across the country.
“The retail landscape is changing, and this difficult decision ensures Decathlon Canada can keep delivering great value, quality gear and inspire more Canadians to enjoy the wonders of sport,” it said.
“We will continue to stay agile and adapt our retail offerings to best serve Canadian sport enthusiasts,” says Jérôme Morice, Chief Operating Officer, Decathlon Canada.
“Decathlon Canada is committed to making sport more accessible to everyone no matter where they live, and this means exploring all avenues that meet our customers where they are and continuing to provide quality service.”
The retailer said affected stores will be closing late summer, with a final date still to be determined. GTA customers can continue shopping for products through Decathlon.ca.
“Decathlon Canada is considering options for quicker, more efficient service in the GTA, including wholesale distribution, new strategic partners and smaller format stores. GTA customers can also take advantage of our same-day shipping service, where products leave the warehouse the day customers in select regions place online orders,” it said.
“Decathlon Canada will be supporting employees affected by the closures, and will consider all employees who want to apply for open positions in other markets.”
When Retail Insider requested a company spokesperson for an interview, the reply was: “Right now Decathlon Canada leadership is focused on helping employees transition following today’s news, so unfortunately we won’t have anyone available for interview.”
Bruce Winder, a retail analyst, said the announcement that Decathlon is closing 5 GTA stores is an interesting development, one that mirrors some of the challenges other foreign retailers have faced in Canada.
“As Decathlon is a private company, we don’t have access to detailed sales and margin results but based on the clues they have left us with this announcement and other announcements last year it sounds like several factors may have led to this decision,” he said.
“One could be an over estimation of the sales potential for the Greater Toronto Area. Often, retailers from other countries run into this and expand with too much infrastructure. Therefore, larger stores can’t make money.
“Another potential factor could be real state costs in the GTA. Rents are high and this makes a store’s break even point higher. Particularly for larger footprint stores.
“Also, the competitive intensity in the GTA within the premium sporting goods and outdoor markets is high. From independents to national and regional chains (Sport Chek, Sporting Life, etc.) Toronto has some entrenched retailers who know the market and have been operating here for years.”
Winder said the economy is not great in the GTA as well.
“Consumers have been cautious with discretionary purchases, particularly higher ticket discretionary purchases and this could have impacted sales as well,” he said.
“Finally, they may have chosen the wrong markets with Brampton, Scarborough and others not aligning with target customer demographics of the premium sports and outdoor enthusiast.
“It sounds like they have not given up on the GTA and instead are exploring wholesale opportunities, continued e-commerce opportunities and smaller city stores in the future. This sounds more like a recalibration vs. a complete retreat and exit.”
Here’s the Decathlon statement from its website:
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I noticed that their location at Union Station closed last time I was there too!
That was a unique ‘transit oriented’ location that failed to take off — now the rest of the local stores are closing. Uniqlo is currently building a small store in the former Decathlon at Union Station.
I visited their union store several times and really liked how they curated the store to have seasonal items in stock, got my sons swimming goggles from there just before last summer. However the store was not really busy. I’ve gone to their store at Scarborough Town centre a few times and I don’t think they ever filled the entire second floor of the former sears store, the store check out was never busy. I hope they come back to Toronto with a better strategy. I saw them as a low price store rather than premium, between Walmart and Sport Check, more like a Mountain Warehouse.
I’ve been shopping with them since their first Ontario store in Burlington and I often frequent their Scarborough and Vaughan stores. I hope they return to the GTA with a new store soon.
Decathlon has been my go-to outdoor store since they opened in Eaton Centre in Montreal. I used to shop at MEC on West Broadway on West Broadway in Vancouver and the outdoor stores that surrounded it, but MEC stores in Montreal aren’t easily accessible by public transit which is the primary draw for me.