Rebel, Decathlon: Sports store war heats up before Christmas

Australia’s love of sport has sparked a fierce retail competition driving prices down and a makeover of stores.

Exclusive: Exercise-obsessed Australians are benefiting from a sports store war that has driven down prices and prompted store makeovers nationwide.

The sector has seen a $2 billion explosion in sales, underpinned by the Covid-inspired shift to more leisure and active wear.

Sports retail giant Rebel is now opening new stores, including virtual soccer pitches and basketball courts, while Decathlon, which launched in Australia in 2018 with the aim of becoming the Bunnings of sport, has been heavily discounting.

Managing director of Rebel Gary Williams said competitors were trying to eat into its market but the retailer was determined to see off any challengers.

“We are the market leader and I say that incredibly humbly because everyone wants to have a slice of the pie and everyone wants to nibble away,” Mr Williams said.

Rebel has now started to roll out upgrades to its stores where people can try the equipment.

Activewear has become a booming business in Australia.

Mr Williams, speaking at the opening of a store on the Central Coast of New South Wales, said the new format would go national.

“This store’s got a football (soccer) experience and it’s got a basketball experience zone where you can actually physically trial the products, go on court, shoot some balls, shoot some hoops,” he said.

The company’s store in Highpoint, Victoria, has a similar set up to the Central Coast store and has seen it climb to the number one spot in the country.

Sports companies across the globe struggled to maintain supply during Covid-19 lockdowns.

Customer demand increased with more people wanting exercise gear, but shutdowns in manufacturing countries such as Vietnam and China choked imports.

Most of the $2bn jump in spending on the Australian sports sector has come in leisure or activewear, with the style replacing jeans as the go-to casual attire.

Decathlon, originally a French company but now with more than 1600 stores globally, has been gaining popularity in its three years in Australia.

Australians are spending an extra $2bn a year on sports gear.

The company claims that it has nabbed up to 10 per cent market share in the areas where it has stores, offering discounts on its own labels.

“Our Decathlon brands are all designed in-house by over 3000 product designers across Europe, so we have exclusive innovative products that you can’t find anywhere else,” the company said in a statement.

“Our in-house brands are on average 30 per cent more affordable than major brands and we offer lifetime return warranty.”

Decathlon also started its Boxing Day sales on December 15, discounting some products by as much as 70 per cent.

Rebel has member pricing where it offers discounts on everyday items after working hard to bring prices down with its key suppliers.

Mr Williams added: “We work with the likes of Nike, Adidas and Under Armour on member pricing products that are at value and it’s every day. It’s not just ‘let’s turn on this promotion this Saturday and turn it off the following Saturday”.

Originally published as Rebel, Decathlon: Sports store war heats up before Christmas