“Romania is a fantastic country, with potential in anything, from manufacturing to tourism and retail,” says Eric Mazillier (44), chief executive officer of the company.
Decathlon will continue expansion by two to three stores this year and keep the same pace over the next few years, he added, without providing any city names or any other details.
Romania is a country with a population of 20 million people and more than half of them say the do not exercise. The main reason is that exercising is not affordable for many. Playing fields cost money and for many people sporting gear is too expensive and this is something he wants to change, the executive says.
Many Decathlon stores have playing fields where Romanians can exercise for free. Moreover, Mazillier says that he has been focusing on cutting prices, with the average cut amounting to 20%, since his arrival in Romania.
Such a step eats into one’s profit margin, but gains customers. It is only natural that people would be price conscious but since Decathlon’s prices are similar to those in bazaars or hypermarkets, people are migrating to it. People can see the quality for themselves, with Decathlon being a specialist retailer, whose products are tested. Decathlon has the largest product research and development center in Europe second only to Renault, the French executive says.
Decathlon carries 50,000 products, which it develops and then gets manufactured by suppliers throughout the world. The French retailer makes bicycles, leather footwear and apparel in Romania. Eric Mazillier will not say how many suppliers there are, just that their number is on the rise, because the local market has a competitive edge in the experience and technical skills of the employees.
Romania’s potential shows not only in Decathlon’s manufacturing operations in the country but also in retail.
The company is looking at each space, city, and region separately. They are all different but there is still room for development. The retailer has focused on the major cities and Bucharest, where it has three stores and believes it can develop further, Eric Mazillier says.
When opening a new store, Decathlon seeks a space large enough to allow it enough room for products for 50 sports at least (or up to 90 in some cases). It also seeks a position that allows it to charge low prices, its CEO says, adding he is not willing to pay a lot for a plot of land or rent to secure a central space, because that would translate into higher prices.
Eric Mazillier came to Romania more than three years ago when the Decathlon network had only eight stores generating RON144 million sales. The retailer is now getting ready to open its 14th store in Romania, in Targu Mures, and revenue doubled.
(English version by Loredana Fratila-Cristescu)