Decathlon store in Moscow

Decathlon, which has over 1,700 stores worldwide and is an IOC partner for the upcoming Paris 2024 Olympics, continued to sell clothing in Russia despite announcing its withdrawal from the country due to the Russia-Ukraine war, according to a media report published on Tuesday.

The multinational retailer, founded in 1976 in Lille, France, and with a turnover of 15.4 billion euros last year, announced its withdrawal from the Russian market a few weeks after Russia's invasion of Ukraine, according to an AFP report based on an investigation by Disclose.

However, in October this year it sold its 60 local stores in Russia to Desport, marking the end of its presence in Russia. The withdrawal was not genuine, according to the report by investigative media site Disclose. In recent weeks, Decathlon has continued to supply Desport with its flagship brands Quechua, Wedze and Kalenji.

Citing internal documents, open-source videos and testimony from former employees, Disclose claimed that Decathlon "implemented a vast system to conceal its exports as part of a supply agreement with Desport" that it said was worth at least $12 million, using a fictitious Dubai company and a Singapore subsidiary. According to Disclose, the operation pushed Decathlon "to the legal limit".

"I learned in the summer of 2023 that Decathlon wanted to continue selling its products in Russia," the media outlet quoted an unidentified source who recently left the company. "I immediately understood that this was a secret project."

Desport brand replaces Decathlon in Russia
Desport brand replaces Decathlon in Russia

According to the cited report, Decathlon diverted some of its production originally destined for EU markets and increased production at Asian sites in order to meet Russian demand. Under EU sanctions in the wake of Russia's attack on Ukraine on 24 February, the supply of arms, luxury goods or equipment that could strengthen Russia's industrial capacity is illegal.

In response to questions from AFP, Decathlon said: "Decathlon does not operate stores in the Russian Federation, does not employ staff and does not hold shares in companies operating in the country. It added that Decathlon "does everything possible to prevent the resale on the territory of the Russian Federation of products purchased in Europe by third parties".

Decathlon has become an Official Partner of the Paris 2024 Olympic and Paralympic Games. The French brand will bring its expertise to the biggest sporting event in the world, equipping the 45,000 or so volunteers who will play a key role in the organisation of the Games.