Decathlon’s UK business was loss-making last year with the French retailer losing £2 million. That came as the market backdrop was tough and it pumped £10 million into various initiatives to transform its business.

The performance was as expected with revenue down 5% and comparable store sales down a narrower 2.5%. It didn’t give a monetary figure.

That said, the fall in 2023 did follow two years of strong growth with a leap of 25% in 2021 (an understandably high figure given the reopening after lockdowns) and 6% in 2022.

As well as its own investments, the company cited the cost-of-living crisis, market dynamics, structural changes in the sports market and the strategic closure of a few UK stores. It has closed six underperforming stores in the past two years, impacting turnover by 2.5%.

It said consumers were cautious during the year and the unpredictable weather dented seasonal sports such as camping and skiing, as well as being part of the reason for a 7% decline in the overall UK cycle market. Other brands and retailers have also talked of a slowing cycling sector.

But despite these challenges, Decathlon said it gained market share across strategic segments.

And its investments should pay off in future with improved operational efficiency, the launch of a new website, more automated warehouses, store upgrades, enhanced product offerings through partnerships and more.

The wholesale business was also expanded in links with Next, Argos, eBay, Asda, Debenhams and Tesco.

Decathlon UK CFO Franck Laden 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.

“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.”