French sporting goods chain Decathlon is preparing to set up a logistics center in Israel, sources inform "Globes." Decathlon, a favorite of Israelis because of its low prices, and which has been benefiting from growing interest in sporting goods among Israelis, is negotiating to build a permanent logistics center to serve its activity in Israel. One candidate to build the center is the Caesarea Development Corporation.
Decathlon currently relies on the logistics center that it rents in Ashdod. It is unclear whether the new center will replace the old center or be added to it. If it is constructed, the new logistics center will serve the chain's four stores - in Netanya, Rishon Lezion, Tel Aviv, and the Krayot region north of Haifa. Decathlon has also signed contracts to open stores at the BIG Centers site in Beersheva, scheduled to open in 2020 as part of the site's future expansion; on the G site of Gazit Globe in Kfar Saba; and on the Dan Town site in Petah Tikva, scheduled to open in 2021. The logistics center will also serve the chain's website.
Decathlon began doing business in Israel two years ago. Its first store in Rishon Lezion attracted a great deal of attention, with masses of customers crowding into the store and emptying the shelves. The company apparently did not expect such strong demand, and did not prepare sufficient inventory, leaving the store with very little merchandise for weeks, and even months.
Sports fashions have become very popular in recent years, both worldwide and in Israel, while the conventional retail fashion sector has been doing poorly, with falling proceeds at shopping malls and a shortage of tenants for differentiation and attracting shoppers. Sports fashions have become part of daily wear in Israel in recent years, with more people engaging in sports and wearing sports clothes. Shopping malls, which are exposed to the proceeds of the chains operating in them, have already noted the trend, and are striving to bring such a tenant. Fashion groups are seeking additional franchises in sportswear in order to diversify their wares.
For example, the Fox group operates Nike stores in Israel, and in the past 30 months brought the Foot Locker chain to Israel, where it already has 52 stores. Another group is Irani, owners of the Factory 54 chain, which is developing the presence of the Fila brand, and recently obtained the franchise for the Puma sportswear brand. At the same time various players in the sector are taking steps to bring new brands to Israel, among them Canadian sportswear brand Lululemon and Intersport, which competes directly with Decathlon. Hamashbir Lazarchan tried to bring Intersport to Israel, and Azrieli is now trying to bring it here through a franchise holder.
Published by Globes, Israel business news - en.globes.co.il - on December 8, 2019
© Copyright of Globes Publisher Itonut (1983) Ltd. 2019