Decathlon has continued to sell products in Russia despite promising to end operations in response to the invasion of Ukraine.
The sporting goods retailer sold its 60 Russia stores to local brand Desport in October as it faced mounting pressure to pull out.
While the move was meant to end the brand’s Russian involvement, it has continued to supply products to Desport, according to investigative website Disclose.
Internal documents revealed the French retailer earned at least £9.5m from Russia, The Times reported.
The Disclose website said: “The French multinational has continued to discreetly supply the Russian market with products bearing its flagship brands: Quechua, Wedze and Kalenji.
“After conducting an investigation based on internal company documents, open-source videos and testimonies from several former employees, Disclose can reveal that Decathlon has set up a large system to conceal its exports under a supply contract with Desport.”
It continued: “At the heart of the move, on the fringes of legality, are the French group’s top leaders, a shell company based in Dubai and a subsidiary of the brand based in Singapore.”
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The website also quoted a former Decathlon staff member, who said: “I heard that Decathlon wanted to keep selling its products in Russia in the summer of 2023.
“I immediately realised that this was a secret project..wwe were not allowed to talk about it with our colleagues. For those of us in the know, using the word ‘Russia’ was banned. We had to use a code name: ‘Sports_R’.”
The sports retailer acknowledged the continue of supply, justifying the move by claiming it wanted to avoid job losses in Russia following the sale of its shops to Desport.
In a statement to AFP news agency, the company said: “It was agreed, in accordance with local and international regulations in force, to continue for a limited duration to supply a limited amount of products so the new owner can launch its operation and preserve jobs.”
In 2022, Decathlon initially resisted calls to pull out of Russia in the wake of its invasion of Ukraine despite swathes of western brands including Ikea, Apple, and Zara suspending their Russian businesses.
However, it finally suspended its Russian business after a backlash from global consumers in late March last year.
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