Retail chain Decathlon under heavy fire for ‘modern slavery’

French retail chain Decathlon is under heavy fire. Investigative journalists accuse the multinational of exploiting workers “to the level of modern slavery”. These include alleged child labour and exploited Uyghur workers in China. The company is also linked to massive deforestation in Brazil.

Founded in 1976, Decathlon grew into a global brand over the years with its innovative and affordable sports and camping gear. Today, the group has as many as 1,700 branches. In 2023, turnover was 15.6 billion euros, net profit was 931 million euros. The first crack in the brand’s reputation occurred when French research platform Disclosure revealed in late 2023 that Decathlon was still selling its products in Russia via a roundabout route.

Consequences of low-cost strategy

Further investigation by Disclosure and TV programme Cash Investigation exposed ‘the serious human and environmental consequences of Decathlon’s low-cost strategy’, Disclosure said. ‘Scarce wages in Bangladesh, child labour and human trafficking in China: Decathlon’s main suppliers resort to various forms of modern slavery in Asia.’ It also uses companies responsible for large-scale deforestation in Brazil, according to the research platform.

The group’s controversial production method is due to Decathlon’s pressure on its suppliers to keep costs as low as possible. The company has nine in-house production sites and also uses 1,272 suppliers worldwide. The main suppliers are located in Bangladesh, China and Vietnam. Extremely low wages in a poor country like Bangladesh are considered a big advantage. The cost per minute would even be calculated to four decimal places.

Decathlon keeps a close eye on entire supply chain

Moreover, internal documents disclosed to Disclosure show that Decathlon knows very well what it is doing. The company keeps a close eye on its entire supply chain: from its supplier to its supplier’s supplier. Commenting on the revelations, Decathlon reported that it disapproves of all forms of child and forced labour. It also says it will take all necessary measures if the allegations are proven. However, the French investigators dismiss this as “meaningless statements”.