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Decathlon UK has revealed that it posted a loss of £2m for the year ended 31 December 2023.
Alongside this, the company saw its turnover drop 5% with a 2.5% decrease for comparable stores.
The retailer has put this decline down to three things; cost of living, market dynamics and store closures.
It also was impacted by cautious purchasing behaviour in the retail industry, a difficult economic environment and unpredictable weather.
The weather had a particular impact on seasonal sports like skiing, and “contributed to a 7% decline in the overall UK cycle market”.
It closed six underperforming stores over the past two years resulting in a 2.5% negative impact on turnover.
Furthermore, the company invested £10m into the business including launching a new online website, enhancing its global product offer through partnerships, modernising top strategic stores and automating warehouses.
Franck Laden, CFO, said: “Looking back at 2023, a year marked by significant challenges for the UK’s retail sector, particularly within key segments of the sports equipment industry, it’s evident that a combination of factors influenced our revenue growth negatively.
“These include declining purchasing power, seasonal hurdles like adverse weather conditions during peak summer and winter seasons, and our strategic decision to close certain stores. In response, our focus has remained squarely on our customers. We’ve implemented price adjustments, enhanced our market positioning, and introduced innovative alternatives through our circular economy models, both in-store and online.”
