Going circular - Transition towards a circular economy

DECATHLON has been working for several years on the design of its products to extend their lifespan. This approach aims to integrate sustainability issues (durability, reliability, performance over time with timeless design) and repairability starting at the product design phase.

Progress made with sustainability
Thanks to methodologies and the associated tests developed since 2020, sustainability criteria are now incorporated through specifications into the definition of Eco-design products. The database helps to make available a roadmap with clear criteria to product engineers. This test-based design methodology has produced a framework and sustainability standards by means, for example, of a choice of more durable components.

We established in 2023 a network of specialist engineers after organising training courses dedicated to this issue. These designers were in charge of creating frames of reference for all articles in their product range, along with identifying those that comply with the sustainability framework through four essential steps:
1. The diagnosis made by the specialist defining the causes of end-of-life, then deducing whether to treat the issue from a durability or repairability standpoint.
2. The test phases that confirm the diagnosis.
3. The interpretations help to put together the frames of reference.
4. The conclusions amassed in the collaborative design software, lead to sustainable design rules.

Thanks to this product sustainability perspective, sports design teams can make the necessary decisions when putting together their range and identify the products to stop or improve.This year, the frames of reference have been completed for the entire clothing range, shoes with studs, backpacks, water bladders, gym balls and jumping balls.

DECATHLON shares its research and conclusions externally within the l’AFNOR (certification organisation) technical committee called DUR-HABI, intended to set up a standard that helps define durability criteria.

Advances made in repairability
Getting inspiration from the repairability index developed in France by the ADEME (French Environmental Transition agency), Decathlon established criteria setting out its products potential for repairability. For each family of items, the criteria to be met for a product to be considered repairable are:
📄 documentation is accessible;
🧩 spare parts are available;
🛠 the product can be disassembled
💶 the repair costs are a least 30 % less than the purchase price of the new product.

By following these four criteria, and thanks to a great deal of work done drawing up a list of the critical issues that arise within each product family, teams have been able to define, for each product type, the percentage of damage and failure covered by a repair solution. 

For a DECATHLON product to be considered as benefitting from an ecodesign approach40, 80% of the breakages and breakdowns related to the nature of the product must be covered.

Please note that we distinguish between a high repairability potential, such as bikes, and eco-design products that benefit from work put in at the design stage to make them more repairable than products on the market
As with the sustainability project, the main work done this year has been to define the frames of reference for each sport, in other words, set out the criteria and thresholds for each product family. Once these categorisation rules established, the network of trained specialist in the repairability concept could share these with
product engineers.

DECATHLON continued defining reference frameworks for the 130 product types identified as priority products, i.e. establishing the criteria and thresholds to be reached by product engineers for each one. 

In 2023, a framework was devised to assess product repairability for 80 of these product types.
The company continues to implement actions on product repairability to reach the target of 100% of sales generated from products benefitting from an ecodesign approach by 2026. In 2023, DECATHLON tested the design rules put in place to be used by product engineers for backpacks, certain inflatable products (paddleboards and kayaks) and certain textiles (jackets). Ultimately, the goal is to systematically use these rules for all priority product families. In 2023, 450 product references were granted the “repairable ecodesign” qualification (6% of all products benefitting from an ecodesign approach).

This article is available to find out more about repairability at DECATHLON.

Decathlon aims to take action at every stage of its value chain to reduce its products environmental impact. Subsequently, studies were conducted, better taking into consideration articles end-of-life, to improve their recyclability right from the design phase.

Several experiments have been carried out since 2021 with different recycling sector stakeholders (recyclers and environmental organisations) to co-create a method and an assessment tool for product recyclability.

The goal of this index is to define and check each product for:
▪️ the recycling potential and approve recyclability is backed by an industrial sector;
▪️ existing links with recycling sectors;
▪️ potential disruptors to recycling (presence of metallic elements or a wide variety of materials can, for example, downgrade the recyclability rating).
Tests validate this data. In 2022, teams tried and tested the recyclability of fins with an external partner.
This collaboration aims to check the feasibility of reproducing fins with the same component thanks to a material grinding and sorting line. The trial is continuing in 2023 with swimming goggles, skis and helmets.

Once this recyclability index defined for priority product families (footwear, clothing, tents, helmets), training was given to product engineers concerned, supported by the publication of recyclable product design help guide, and then accompanied by design rules to carry out concrete actions plans for certain types of products. Initially used by certain teams (helmets, footwear and mountain sports) in 2022 as a test, this guide will be introduced for all products in 2023.

To make these activities compatible with planetary boundaries while maintaining the company's financial viability, DECATHLON aims to transform its business model by accelerating the development of the product-service system.


Opting to promote usage ahead of ownership involves considerable thought and experimentation to make it possible for products to be repaired, hired, resold, reused for as long as possible, and finally, recycled, if possible.A design distributor, therefore, needs to rethink its entire value chain to create sustainable value while reducing the company's impact on the environment.
We've done this transformation based on in depth analysis of users' needs and feedback.

Scaling up lower carbon emitting services (second life, product hire, product repair) will enable the group to provide its customers with responsible and diverse sports services and encourage access to sport.

Figures 2023
▪️DECATHLON continued developing its in-store buy-back system, which is now available in eleven countries.

▪️The monthly subscription rental offer continued to grow in popularity, with more than 60,000 contracts signed in five countries in 2023 (20,000 in two countries in 2022).

▪️DECATHLON continued working to increase the application of repair solutions internationally.

The development of products' second life is gaining pace at DECATHLON thanks to the circular sales turnover being incorporated into financial reporting and in line with the transformation of the company's business model.

43 countries currently have a second life products offer with buy-back and new digital solutions helping to encourage the development of circular economy applying to more and more goods.This acceleration is taking place while meeting DECATHLON's requirements.

Articles put back on sale are inspected with the same standards applicable to new products, in particular, thanks to the detailed inspection sheets, gradually developed by design engineers and specific to each type of DECATHLON product.

The buy-back system allows customers to sell their used sports goods directly. This system is available in stores in Belgium, France, the Netherlands, Poland, Portugal and Spain.

The model was also rolled out in Germany, Italy, Romania, Switzerland and the United Kingdom this year.

The buy-back offer continued to grow in 2023, concerning over 100 product types (20 in 2022) in fitness and body building, winter sports (skis and snowboards), water sports (canoes, surfboards and paddleboards), urban mobility (bicycles, scooters, skateboards and in-line skates), hiking equipment (tents, bags, hiking poles, warm jackets and textile equipment having a sales price of more than €35), golf, fishing, horseback riding, racket sports (tennis, padel and badminton) as well as hunting and shooting (textiles). Service simplicity is fundamental in promoting the development of buy-backs. In Decathlon stores, customers can sell their products in exchange for a voucher or direct payment to their bank account (in France since 2022).

The products are then inspected and covered by a warranty, allowing the new buyers to benefit from a money-back guarantee.

DECATHLON’s testing in various areas to build strategic convictions based on experimentation and innovation means rentals are becoming a sustainable activity, thus enabling the company to rethink its business model. In 2023, the company offered two rental solutions: short-term rentals and monthly subscription rentals. 

DECATHLON also continues to seek flexible solutions that are suited to customer needs in order to facilitate the adoption of consumption patterns with a reduced impact.

SHORT-TERM RENTALS
Short-term rentals come with a one-time payment, so customers can use Decathlon products for a few hours, a few days or an entire season. This is especially suited to outdoor sports products50. In 2023, this service was available in 17 countries, which are directly responsible for setting up an adapted local solution to ensure the smooth functioning of the service. This model grew strongly this year, generating more than €14 million in sales (€9 million in 2022).

MONTHLY SUBSCRIPTION RENTALS
Monthly subscription rentals offering increased flexibility (usually a minimum of three months) were available in five countries in 202352 (two in 2022). This subscription model, which DECATHLON has identified as a priority in its rental development strategy, continues to be rolled out, notably for children's bicycles.

This year, DECATHLON France discontinued its subscription service for children’s tennis rackets but continued monthly rentals for adult bicycles, weight lifting equipment and golf equipment. In 2023, DECATHLON France also tested a home delivery service for fitness equipment (treadmills, elliptical bikes, rowing machines and exercise bicycles).

In 2023, Decathlon’s central services also worked on re-renting products after their first subscription rental.
Until now, all returned products have been sold as second life items. From 2024, thanks to the structuring and standardisation of the re-rental system, new countries in which monthly subscription rentals will be available will adopt this way of working. It will also be gradually rolled out in countries already offering the monthly subscription rental offer. There was a significant increase in the number of monthly subscription rentals overall in 2023, with 60,000 contracts signed (20,000 in 2022) and an average customer satisfaction rating of 4.8/5. This rental model continued to grow this year, generating over €6 million in sales (€1.3 in 2022).

The company continues to study the offering, detailed conditions, customer experience, logistics and customer risk management of each rental model to determine the format that best matches customers’ needs.
The 2023 financial results for rentals confirm customers’ growing interest in these services. Thanks to encouraging growth in all countries, global rental sales reached €20.6 million this year (€12 million in 2022). Decathlon’s ultimate goal is to offer its customers an omnichannel and complete rental experience (choice of duration, level of commitment, products and associated services).

INTERNATIONALLY
Product repair is the cornerstone of Decathlon's circular economy approach, and lies at the heart of the development
of a business model that allows customers to increase the lifespan of their products through a network of 1,712 in-store workshops and 3,739 technicians worldwide.

It will also play a major role in the future through the development of second life and rentals to guarantee product safety.
The development of maintenance and repair solutions worldwide relies on the skills of trained technicians, standardised operating procedures and the availability of tools and replacement parts. The network of “repairability-repair managers” at DECATHLON’s sports and repair departments provides all these resources.

Because repairability is considered right from the design phase, products can be repaired at DECATHLON's store workshops or even by the customers themselves. So, backed by the expertise of workshop technicians, the sports and design teams are now working hard to meet DECATHLON’s commitment of 30% of products being repairable by 2026.

These efforts helped improve the company’s performance in 2023, with 16.1% of products being repairable as of 31 December 2023 (11% in 2022).

Thanks to the growing number of repairs made this year, 70.6% of products that are considered repairable actually were repaired in 2023, compared to 66.5% in 2022. Note
that the 2023 performance remains lower than the 2021 result (77.1%) due to the expansion of the offer of repairable products to include items having varying levels of repairability.

For repairs made directly by customers, an after-sales service site with links to compatible replacement parts and explanatory tutorials is available at https://support.decathlon.fr in 12 languages and in 13 countries. Technical support is also offered in nine countries, with experts guiding customers in their repairs (for bicycles, table tennis tables, electronics and fitness equipment) by email, telephone or video conference, depending on the country.