Leroy Merlin plans to treble presence

By 2018 the French DIY retailer Leroy Merlin intends to expand its network of stores in the Russian Federation to 95 outlets, which is more than three times the current total. This was revealed in a presentation made by the company. The chain, which is part of Groupe Adeo, is planning eight new DIY store openings for 2014, and 2015 should see 15 new locations. The company, as the leading contender in the industry, currently has 28 stores at 16 locations and works with two sales formats in Russia: one some 10 000 m² in size that carries 30 000 items, and the other around 12 000 m² with 35 000 items. According to Infoline, a market research institute, Leroy Merlin achieved a market share of more than ten per cent in 2013 for the first time, and increased its sales in Russia by 15 per cent on the result of the previous year (2012: RUB 72 bn, approx. € 1.8 bn). Michail Burmistrow, the boss of Infoline, describes Leroy Merlin’s plans as extremely ambitious, though he is convinced that the company’s successful business model will prove persuasive not only to customers in the Russian megacities but also to those in cities with a population of 300 000 or more.