Supply difficulties were blamed yesterday for a rapid volte face by Decathlon, the sportswear chain that is part of a French retail empire that has come under pressure over its decision to continue doing business in Russia.
Decathlon said that it was suspending activities in Russia, barely 24 hours after Ukraine called for a global boycott of the French conglomerate. The sports kit group is owned by the Mulliez family, which is also behind Leroy Merlin, the DIY retailer, and Auchan, the hypermarket chain, both of which continue to operate in Russia.
Other western companies, such as McDonald’s, Starbucks, Deutsche Bank and Shell, have stepped back under pressure from customers and their governments after the invasion of Ukraine.
“In strict compliance with international sanctions, Decathlon notes that the supply conditions are no longer met to continue its activity in Russia,” the company said. “Decathlon has to suspend the operation of its stores.” It imports most of the products it sells in its 60 stores in Russia. It said it would continue to support its 2,500 staff there, some of whom have been involved with the company since 2006.
Auchan, which has 231 stores and 30,000 staff in Russia, where it makes 10 per cent of its global turnover, has been singled out by President Zelensky of Ukraine for continuing its Russian operations. Leroy Merlin made €5 billion of revenue in Russia last year, its biggest market behind France.
