Decathlon Sells 82 European Stores In €527 Million Sale & Leaseback Deal

- Leading sporting goods retailer Decathlon has announced the sale of 82 stores across Europe in a sale-leaseback deal valued at €527 million. The agreement with Realty Income Corporation, a US-based real estate investment trust specializing in single-tenant properties, sees Decathlon retaining long-term leases on the stores, allowing them to continue operating as usual.

The portfolio sold includes stores in key European markets such as France, Germany, Spain, Italy, and Portugal. While specific locations haven't been disclosed, the average store has been operational for 18 years, highlighting Decathlon's established presence in the region.

Financial Boost for Future Growth:

This deal provides a significant financial boost for Decathlon, unlocking €527 million in capital that can be reinvested into other initiatives. Experts speculate that the funds could be used for:

• Expanding e-commerce operations: Decathlon has been steadily growing its online presence, and this capital could fuel further investments in technology and fulfillment capabilities.
• Entering new markets: Decathlon has ambitious global expansion plans, and this influx of cash could accelerate its entry into new territories.
• Investing in sustainability: Decathlon has pledged to reduce its carbon footprint by 20% by 2026, and this capital could be used to fund green initiatives across its operations.

Long-Term Commitment to Real Estate:

Despite the sale, Decathlon remains committed to its physical store network. Long-term leases on the sold properties ensure operational continuity and provide access to established customer bases. This sale-leaseback model allows Decathlon to free up capital while maintaining control over its physical presence.

Neil Abraham, President of Realty Income International, commented: "We are proud to partner with Decathlon, a leading name in the sporting goods industry, in this landmark transaction. We are confident that these high-performing assets, occupied by a strong tenant with a long-term commitment to the locations, will be a valuable addition to our portfolio."

The Future of Retail:

This deal reflects the evolving landscape of retail. While online shopping continues to grow, brick-and-mortar stores remain vital for customer experience and brand engagement. Sale-leaseback agreements offer retailers a way to unlock capital while maintaining strategic control over their physical presence.

It remains to be seen how Decathlon will utilize the acquired funds, but this deal signifies its continued commitment to innovation and growth in the European sporting goods market.