Company Overview: Leroy Merlin DIY

Résumé du document

Leroy Merlin sells “do-it-yourself products” in 13 different domains including painting, sanitary equipment, gardening, etc. The Leroy Merlin group is the sixth leading group in the world in this sector with an increase in turnover from 2654 million euros in 1998 to 4088 million euros in 2002.

The Tourcoing Leroy Merlin store was created in 1984 and expanded in 1995. It is composed of 10 managers, with one store director named Didier Marchez, one control manager Isabelle Staes, and eight sector managers responsible for from one to three areas.

Moreover, the store offers 40,000 references spread across the 13 areas and achieves a turnover of 25 million euros, thus ranking 60th among the 80 Leroy Merlin stores in France. With its 10,000m² area, it is positioned 30th in comparison to the other Leroy Merlin stores in France.

Leroy Merlin has got various competitors which are:

•Its main competitors are the ‘Hard Discounters' which offer varying low prices.In 2002 a “Brico-Dépot” store set up operations in front of Leroy Merlin Tourcoing that provoked a decrease in the latter's turnover. Faced with this problem, it responded by offering more competitive prices, a fidelity card and a wider range of products, for example, in its decoration area which doesn't exist in the portfolio of Hard Discounters.

•Castorama: It figures among the main competitors of Leroy Merlin. Leroy Merlin offers a more diverse furnishings department than Castorama and offers a complete range of products If a customer wants to change his bathroom, he can find all necessary accessories, for example, tiled floor, a wall paper, a soap dish, etc.

•Bricorama, Mr Bricolage: They are also competitors of close proximity but they are smaller than Leroy Merlin.

Extraits

[...] The supplier will deliver directly the products to Leroy Merlin Tourcoing warehouse. After that products are controlled by the staff and implemented on the shelf. Leroy Merlin Head office decides to order particular products on all the Leroy Merlin stores in France. They order a certain amount of products for each store and the supplier deliver the products to the Leroy Merlin national warehouse, and finally the products are transported from the national warehouse to Leroy Merlin Tourcoing warehouse where the products are controlled and then implemented on the shelf. [...]

[...] At the moment, Leroy Merlin Tourcoing counts discrepancies in its accountancy by passing a loss and by passing a countable provision. Maybe they should find “physical” solutions to suppress them (reinforcing the procedures of delivery to ensure that they really receive what they paid) Business and customer needs Business needs. The implementation of JIT would question again the philosophy of the store for different reasons: The philosophy of Leroy Merlin is actually to have sufficient stocks to always satisfy the customer. [...]

[...] The customer purchase which is a custom made service, is totally independent. In the store, an area is especially dedicated to the ordering of custom made products. There is also a specific area to store the products ordered by customers and manufactured on purpose for them. They can go for them when they want. In the storerooms the number of (stocking unit) is distributed according to the weight of each area. For example: X racks are attributed to the materials department, they are located either outside either in a covered place. [...]

[...] Leroy Merlin should have a back office related with its suppliers. Thus the suppliers can see when Leroy Merlin needs products or when Leroy Merlin would pass an order and they can anticipate and start to product to reduce the delays of delivering the products Organisation and structure Considering the organization of the store, we can formulate some recommendations to improve it: The store should focus more on the “beaconing” (signalization) of: - Departments and checkouts (using signs, arrows ) - Specific offers inside departments. [...]

[...] Castorama: It's the main competitor of Leroy Merlin. Meanwhile, Leroy Merlin has got a decoration area more important than Castorama and proposes a complete range of products If a customer wants to change his bathroom, he can find all accessories wanted for example tiled floor, a wall paper, a soap dish Bricorama, Mr Bricolage: They are also competitors of proximity but they are smaller than Leroy Merlin. Caracteristics of Leroy Merlin Tourcoing Different elements which characterize Leroy Merlin Tourcoing are: Tourcoing is a good commercial place with the benefit to be near Belgium. [...]