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Decathlon announces suspension of operations in Russia

Photo by: Decathlon France/YouTube

Decathlon revealed on Tuesday, March 29, that it will halt all of its activities in Russia. The French sporting goods company said that its supply conditions in the country were no longer accommodated to keep up its operations.

Reuters reported the Mulliez family that owns Decathlon has come under great pressure to make its exit from Russia after it launched attacks to invade Ukraine. The French family also owns two other high-class retail brands - Leroy Merlin, a home improvement retailer, and the Auchan supermarket chain, and these are operating in Russia as well.

Ukrainian President Volodymyr Zelenskyy has criticized Auchan for remaining in Russia and operating as usual. The chain is said to have 231 branches and an e-commerce store that employs around 30,000 staff.

It was not mentioned if the Mulliez group will also be pulling out Leroy Merlin and Auchan but the latter's CEO reportedly told Journal du Dimanche, a French paper, that they are planning to maintain the supermarket's presence in the country because he feared Auchan will risk losing assets or get Russian managers in legal troubles if they halt their business.

On the other hand, Decathlon is definitely leaving. The company said that despite the suspension of its business, it will continue to support its 2,500 staff in Russia.

Meanwhile, BBC News reported that the boycott calls may have a hand in Decathlon's decision to pull out from Russia. The sportswear and equipment retailer has 60 stores there and via social media, people have called to cut off the brand from continuing to do business in the Vladimir Putin-led country.

Most of the major companies have already stopped their operations after the boycott calls, such as McDonald's, Coca-Cola, PepsiCo, and Starbucks. With some firms that still chose to remain, people have not stopped asking them to withdraw. Decathlon is one of the latest firms to yield to the calls.

"In the dramatic context of Ukraine, we are following the evolution of events and particularly the situation of those directly affected," Decathlon said in a statement. "In strict compliance with international sanctions, Decathlon notes that the supply conditions are no longer met to continue its activity in Russia thus Decathlon has to suspend the operation of its stores."

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