Case Study

Decathlon’s circular revolution: Scaling sustainable business models

16 pages
November 2024
Reference: IMD-7-2599

The case focuses on Decathlon’s journey from 2023 onwards as it seeks to scale its circular business models and transform from a successful pilot phase to large-scale industrialization. Anna Turrell, Decathlon’s chief sustainability officer, is tasked with achieving ambitious growth targets – to increase circular sales by 6 to 10 times. The case details how Decathlon approached its circularity strategy by expanding second-hand, repair, rental and recycling initiatives across its global operations. It highlights the strategic challenges Anna and her team faced in deciding where to focus their scaling efforts across regions, sports segments and business models. Key enablers of the scaling strategy, including digital transformation, reverse logistics, consumer engagement and strategic partnerships, are explored as critical factors for success. As Decathlon moved toward becoming a global leader in circularity, Anna had to overcome operational complexities and encourage consumer behavioral change while balancing financial goals with sustainability objectives. Despite the clear business potential, the challenge remained of how to scale circularity efficiently across diverse markets and sports while creating a seamless customer experience.

Learning Objective
  • Understand and describe circular business models (second-hand, repair, rental, recycling) and their role in Decathlon’s strategy.
  • Identify key enablers for scaling circularity, including digital transformation, reverse logistics and partnerships.
  • Analyze strategic decisions across regions, sports segments and business models for scaling a circular strategy.
  • Examine challenges like operational complexity and consumer behavior in scaling circular models.
  • Develop a future-back scaling strategy that prioritizes resources and investments.

Keywords
Sustainability, Innovation, Value Creation, Circular Economy, Sustainable Innovation, Business Model, Scaling, Industry Innovation, Industry Infrastructure, Responsible Consumption, Responsible Production, Climate Action, Diversity, Equity, Inclusion
Settings
Europe, France
Decathlon, Consumer Goods, Sports Equipment
2023-2024
Type
Field Research
Copyright
© 2024
Available Languages
English
Related material
Teaching note, Video
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