Three openings in three days

The French DIY store operator Leroy Merlin opened three new stores in Brazil on consecutive days in October 2015 in Campo Grande, São Bernardo do Campo and in Jaguaré. The company had already opened one new store in the first half of the year, its 37th store and the first in north-western Brazil. Another new opening followed in December. Overall the French have invested BRL 400 mio in the five new stores opened last year.
A member of Groupe Adeo, the Leroy Merlin chain recorded sales amounting to around BRL four billion in Brazil last year. With a total market volume of BRL 60 bn indicated by the building materials retail association Anamaco (Associação Nacional dos Comerciantes de Material de Construção) for 2014, this is equivalent to a market share of roughly six per cent. While the market was expected to grow by approximately six per cent last year according to the Anamaco forecast, Leroy Merlin aims to maintain growth of 20 per cent.

Leroy Merlin's presence used to be limited to the south-east of the country and the big cities like São Paulo and Rio de Janeiro. However, that does not distinguish this DIY retailer from the rival multiples Telhanorte (38 stores, part of the French Saint-Gobain Group) and C&C Casa & Construção (44 stores). Another major player on the Brazilian home improvement market is Dicico (58 stores). The Chilean retail group acquired a 50.1 per cent stake in this chain operated by a company called Construdecor in May 2013.