Leroy Merlin East Leroy Merlin Vostok

Leroy Merlin is an international retailer specializing in the sale of goods for the construction, decoration and arrangement of a house, summer cottage and garden.

Leroy Merlin East is a chain of hypermarkets for building materials and household goods.

History and Performance Indicators

2023

Scenari Holding became the owner of Leroy Merlin in Russia

Scenari Holding LP, registered in the UAE, became the main owner of Leroy Merlin's Russian business, receiving a 99.993% stake in Leroy Merlin Vostok LLC. The corresponding entry was entered into the Unified State Register of Legal Entities (USRUL) on December 1, 2023.

According to Interfax, citing data from the Unified State Register of Legal Entities, the remaining 0.007% of the Russian legal entity Leroy Merlin was retained by the French group Adeo, which includes a network of construction hypermarkets. At the same time, the DIY retailer did not make an official announcement about the change of owners by November 4, 2023.

Scenari Holding LP became the main owner of the Russian business Leroy Merlin

In March 2023, Adeo announced plans to transfer Leroy Merlin's Russian business to local company executives. Then it was argued that the deal would not have any impact on the network, and all jobs would be preserved, and relations with partners and customers would remain the same.

Adeo clarified to Vedomosti that the Russian business will be transferred to the board of directors of Leroy Merlin in Russia. According to the publication, it includes General Director Laurent Defassier, Deputy General Director Marina Fytova, Head of the Anti-Crisis Committee and Personnel Director Vera Boyarkova and others.

The Ministry of Industry and Trade said that "the company made a reasonable decision to transfer assets to local management."

The chain will not only continue to operate and retain all staff, but also plans to open new stores. The company's performance is good, - said State Secretary - Deputy Minister of Industry and Trade of the Russian Federation Viktor Yevtukhov, whose words are quoted by the newspaper.

According to Mikhail Burmistrov, general director of Infoline Analytics, since 2022, the Russian division of Leroy Merlin has been operating autonomously, practically without any contact with the foreign owner.^[1]

There was a leak of customer data from Bukvoed, Leroy Merlin, Yours and Eat at Home

On June 8, 2023, it became known about a data breach to customers of four large companies in: Russia the online bookstore "," Pedant the construction store, "the Leroy Merlin culinary recipe portal" Eat at Home "and the clothing store". " Yours More. here

Russian tax evasion charge

The first deputy chairman of the State Duma Committee on Security and Anti-Corruption Andrei Lugovoi in March 2023 said that Leroy Merlin in Russia underestimated the tax base, withdrawing money through loans. For example, in 2020, the company's profit before taxes amounted to 7.5 billion rubles, and payables - 95.7 billion rubles.

Retail chains are the business of Mülier's French relatives. Companies are registered and pay taxes in France, the Netherlands and Luxembourg, where hundreds of billions earned in Russia go. It turned out that in their homeland, Mulier is considered malicious tax evaders.

2022

Creation of an IT company in Russia

On October 11, 2022, it became known about the creation of Leroy Merlin Digital Technologies. This "daughter" of the chain of stores for repair, according to the SPARK-Interfax system, is engaged in software development, and its head is Viktor Kisilenko, who holds the positions of general director in companies in Moscow, Kaliningrad and the Kemerovo region. Read more here.

Statement on the continuation of work in Russia

On March 11, 2022, Leroy Merlin announced its continued work in Russia and is ready to increase supplies and expand the range. The construction retailer made this statement against the background of how many foreign companies decided to stop activities in the Russian Federation in response to the start of the Russian special operation in Ukraine and the subsequent Western sanctions.

"Despite any rumors, we continue to work and do not plan to stop the company's activities," says a letter signed by Deputy General Director of Leroy Merlin Vostok LLC Eric Pule and Director of Supplier Relations Anna Goncharova.

The appeal also says that due to the current situation, the company will not fine partners for disrupting supplies, but expects them to "fulfill the level of service." It is noted that the retailer will consider requests for changes in purchase prices in a shortened time, but will not accept unreasonable proposals.

2021

Revenue growth by 31.5% to RUB 456.63 billion

Leroy Merlin's revenue in Russia in 2021 reached 456.63 billion rubles, which is 31.5% more than a year earlier. Sales growth rates increased sharply - in 2020, the rise was measured + 11.5%. Net profit of Leroy Merlin Vostok LLC in 2021 amounted to 35.52 billion rubles against 4.39 billion rubles in profit for the previous year. Such data in accordance with Russian accounting standards were released in April 2022.

Leroy Merlin revenue in Russia in 2021 reached 456.63 billion rubles

As Interfax notes with reference to the data of the SPARK-Interfax system, the net profit of Leroy Merlin Vostok LLC in 2021 was a record. The company's gross profit increased by 41.5%, on 140.56 billion rubles, and profit from sales more than doubled to 44.51 billion rubles.

Leroy Merlin's commercial expenses in Russia in 2021 increased by 24.7%, to 79.16 billion rubles. Management costs increased by 18.3%, to 16.88 billion rubles.^[2]

Construction of a warehouse in Domodedovo

As it became known in mid-December 2021, Leroy Merlin bought 7.5 hectares in the South Gate industrial park. It is located at the intersection of the A-107 federal highways, the Don M-4 highway and the Central Ring Road A-113, in close proximity to Domodedovo Airport. The seller of the site was Radius Group, told Kommersant in this company.

For this site, a network of stores for repairs could pay 300-350 million rubles, says Konstantin Fomichenko, regional director of the industrial and warehouse real estate department at Knight Frank. Another 1.5-1.6 billion rubles will be required for the construction itself, adds Mikael Ghazaryan, a member of the board of directors of JLL.

Leroy Merlin begins to build a warehouse in Domodedovo for billions

The site is adjacent to the existing warehouse of the company with an area of ​ ​ 100 thousand square meters. m, which was built in 2016 by Radius Group according to the BTS scheme and then completely purchased by Leroy Merlin. The complex of premises forms a single autonomous territory in the industrial park "South Gate," which will be used only by Leroy Merlin.

In particular, it is planned to expand the existing innovative logistics center by 32 thousand square meters. m to a potential total area of ​ ​ 132 thousand square meters. m for use as a distribution and distribution center.

Denis Borshchev, head of the warehouse building at Yuzhnye Vorota, said that given Leroy Merlin's development plan until 2023 and forecast for trade growth, as well as an online trading development strategy, the expansion is planned to increase warehouse capacity and close logistics needs.

This project will allow us to increase the depth of storage of the product range, create a fulfillment center for the e-commerce store, automate part of the processes, increase the efficiency of the warehouse and create a service for our customers at an even higher level, "Borshchev said.[3]

2019

"Leroy Merlin" voiced a strategy for the medium term

Retailer Leroy Merlin intends to re-focus on the development of new formats of offline trade and sales via the Internet in the medium term. This was announced in December 2019 by the deputy general director of Leroy Merlin Vostok LLC Kozak Nikolai. "We will be opening stores, but opening new hypermarkets won't take us to the goals we want. The market is already oversaturated with green stores. We will play with new formats, "said Kozak^[4].

According to him, the retailer relied on the development of its own ecosystem, including online trading. This is a market requirement, Kozak explained. "People compare" Leroy Merlin "not even with" Petrovich "and other DIY players. People compare us to other marketplaces, goods.ru, for example. They can have free delivery, a good service for tracing, reliable flow (information about the availability of goods - ed.), "- said the deputy general director of Leroy Merlin Vostok. The retailer will actively develop its own Marketplace so as not to lose competition in this market, he summed up.

Nikolai Kozak added that when developing its own online trading platform, the network will bet, among other things, on an expanded commodity offer (outside the DIY segment). "We need new customers who wouldn't have come to us otherwise. For example, those who purchase diapers for a child or cat food via the Internet, "he said.

2018

Revenue 325 billion rubles (+ 20%)

The revenue of the DIY network "Leroy Merlin" in Russia at the end of 2019 will reach 390 billion rubles. including VAT. In June 2019, the general director of Leroy Merlin Vostok LLC Vincent Jeanti told reporters about this. According to him, the network expects an increase in the indicator by 20%. In 2018, Leroy Merlin's revenue in Russia also increased by 20% to 325 billion rubles. with VAT, added Jeanti.

Nikolai Kozak, deputy general director of Leroy Merlin Vostok, in turn, shared the retailer's plans for the development of the online sales segment. According to him, the company intends to increase its share in revenue from 3% to 10-15% within three years.

"We are now moving away from the expression" online sales "and come to the expression" omnichannel sales. " The client now does not distinguish which world he is in. When we talk about omni-sales, there are three very important things. The first is when the client prepares to visit the store, studying the information on the company's website. The Leroy Merlin website is now 20 million visitors per month. The second is directly sales via the Internet with delivery. The third is collect & get, pickup, which also forms this share of sales, "said Kozak (quoted by Interfax).

Vincent Jeanti also commented on the retailer's possible purchase of Castorama hypermarkets. According to him, the entire network is not interested in the company, only specific hypermarkets. 'They've started selling it all together now. We have interest in several facilities. If there is such an opportunity, it is good, "said Zhanti (quoted by RIA Novosti).

Nikolai Kozak, in turn, added that Leroy Merlin intends to open 35 hypermarkets in Russia, Belarus and Kazakhstan within three years.

Leroy Merlin will build the largest warehouse in Russia near Moscow

DIY retailer Leroy Merlin will build a new distribution center in the Dmitrovsky district of the Moscow region. RIA Novosti writes about this with reference to the deputy governor of the region Denis Butsaev in September. The complex will become the largest such object of the trading network in Russia, the material says.

The area of ​ ​ the distribution center will be 130 thousand square meters. m. The object will be erected in the industrial park "White Rast." Its commissioning is scheduled for autumn 2019, the start of work is for the first quarter of 2020. Leroy Merlin's costs for the construction of the complex will amount to 10 billion rubles.

Recall that the Leroy Merlin distribution center is already operating in the Moscow region. The object with an area of ​ ​ 92 thousand square meters. m is located in the urban district of Domodedovo on the territory of the industrial park "South Gate." This complex cost the retailer half the price: about 5 billion rubles.

Leroy Merlin buys K-Rauta hypermarkets

Leroy Merlin, a retail chain for home goods and repairs, bought out the space of rival retailer K-Rauta in early 2018. Vincent Jeanti, general director of the French network in Russia, told reporters about this. All outlets will become hypermarkets "Leroy Merlin," the corresponding reconstruction will take from four to six months.

The transaction amount amounted to 12 billion rubles. For this price, the French DIY retailer acquired 12 stores out of 14, including eight hypermarkets at once in the northern capital. "Buying K-Rauta stores allows us to win ten years of development in St. Petersburg," Jeanti commented. The deal also included three hypermarkets in Moscow and one in Kaluga.

The average retail area of ​ ​ purchased stores is from 6 to 7 thousand square meters. m. For comparison, hypermarkets with an area of ​ ​ 8 thousand and 10 thousand square meters are standard for Leroy Merlin. At the same time, the area of ​ ​ one of the newly acquired stores - on Vasilyevsky Island in St. Petersburg - is only 4 thousand square meters. m. It will be the smallest Leroy Merlin outlet in Russia^[5].

The deal did not include two K-Rauta hypermarkets in Yaroslavl and Tula. Leroy Merlin does not need retail outlets, since their own operate in these cities nearby, explained Vincent Jeanti. As you can judge, hypermarkets in any case will change owners.

2017

At the end of 2017, the revenue of the Leroy Merlin DIY network in Russia amounted to 266 billion rubles. The corresponding figure was announced by the general director of Leroy Merlin Russia Vincent Jeanti. Compared to 2016, the turnover of Leroy Merlin hypermarkets increased by more than 40%. In the year before last, the same figure amounted to only 188.3 billion rubles. According to Jeanti's estimates, the French retailer in the departed 2017 increased its share in the Russian DIY market to 12.8%^[6].

It is noteworthy that experts predicted Leroy Merlin significantly more modest revenue. The corresponding indicator at the end of 2017 "will exceed 200 billion rubles," a representative of Infoline Analytics noted in a comment to Kommersant. The turnover of the Russian DIY market as a whole, according to the consulting company, in 2017 grew by 2% and approached 1.4 trillion rubles.

As of January 2017, the company's staff is more than 5,000 people.

2016: Revenue growth of 24%

The revenue of the retailer Leroy Merlin increased by 24%, amounting to 220 billion rubles. The increase was 3.1% in comparable areas and 24% in all areas. In 2017, the network expects to increase revenue by another 27% to 280 billion rubles.

The company intends to achieve such a significant growth in turnover due to new hypermarkets. Leroy Merlin plans to open about 20 new stores in Russia annually. Agglomerations with a population of more than 1 million people remain priority cities for the retailer: by the end of 2018, the network intends to cover 22 of them. To date, it is represented in 17 million people.

In addition to opening new stores in Russia, Leroy Merlin is considering entering the markets of Kazakhstan and Belarus, as well as creating a franchise.

2006

In 2006, Leroy Merlin's band became GROUPE ADEO. Nine brands of the D.I.Y. (Do-It-Yourself) sector of four professional categories have merged under this brand: Hypermarkets: LEROY MERLIN Stores of medium area: AKI, BRICOCENTER, WELDOM, DOMPRO Stores-warehouses: BRICOMAN, BRICOMART Innovative concepts: ZODIO, KBANE

Notes