Leroy Merlin expands Russian store network

Leroy Merlin plans to open ten new DIY stores in Russia in 2015, in particular in cities with over 400 000 inhabitants. This was announced by Vincent Gentil, General Manager Russia, at the forum on “The Russian Retail Business”, organised by the Adam Smith Institute in Moscow. Although the priority continues to be the mega-cities, the French chain, belonging to the Groupe Adeo, is taking cities with 200 000 plus inhabitants into consideration. However, a more compact format will be operated here. As a guideline, Gentil envisions 20 new openings annually and a store network of 120 stores by 2019. The Russian market has the potential for 500 new large format stores with around 10 000 m² in the next ten years and the same amount again with 5 000 to 6 000 m².
In 2014, Leroy Merlin recorded a revenue increase of 30 per cent in Russia but the company expects only around 20 per cent plus for 2015. In view of the depreciation of the Russian rouble, the prices have increased by around 10 per cent but in a crisis, homes and gardens have a more important value. However, the customers are currently turning to the middle or lower price levels.