Decathlon beat by supermarkets to the finish line as UK arm slumps into red

French sportswear giant Decathlon, often dubbed the Ikea of sports retailing, has plunged into the red in Britain, despite an increase in sales.

Revenues were up by 28.9% to £187 million for the year to December 31. However, it made a loss of £8.4 million from pre-tax profits of £800,000 the year before, Companies House accounts showed on Wednesday.

The UK business, which made its debut in 1999, warned the second half of the year had been more difficult because of Brexit and a challenging retail environment.

It also said supermarkets were encroaching on its turf, “devoting more floor space to non-food items” and making it harder to stay competitive on price. The discount retailer is privately owned and has more than 1000 stores around the world, of which 42 are in Britain.

Decathlon plans to have up to 300 shops here in the next decade. In June it unveiled its new store-cum-HQ in Surrey Quays after a £14 million makeover. It sells anything from running clothes to fishing gear.