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.
[...] Leroy Merlin should increase its number of warehouses and make them closer to the store in order to increase the order speed and decrease the time of delivery. This process would be more efficient because Leroy Merlin, instead of implementing huge orders for many products, can order more often the products they need and which are in low stocks (because these products will be sold quickly and Leroy Merlin doesn't need to stock them often). In effect, it wouldn't take a long time to order a product. [...]
[...] 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. Caracteristics of Leroy Merlin Tourcoing Different elements which characterize Leroy Merlin Tourcoing are: Tourcoing enjoys a positive geographical vantage point as it is located near the Belgian border. [...]
[...] First, let see the positive ones: With the Just In Time philosophy, Leroy Merlin would have less product choice but this product quality would be better than before, that's why even if the range of products is reduced the customers would be satisfied due to the better quality. The Just In Time concept will permit the customer to find all the products they want, because Leroy Merlin won't be out of stock so when the customer needs a product, he is sure that Leroy Merlin will have it in his store and that would satisfy the customer. [...]
[...] Otherwise, he can order from the Leroy Merlin national warehouse or another warehouse in closer proximity. The product ordered will be delivered to Leroy Merlin Tourcoing. The product received will be either delivered to the customer or the customer will come to the store himself to collect it Organization of the store Here is the plan of the Leroy Merlin Tourcoing store: Thanks to this graph, one can have an overview of the organization of the store: The store is organized by departments that are quite independent of each other. [...]
[...] However, Leroy Merlin Tourcoing should improve the points below: Sales assistants often have to adhere to a set quantity of products and they often end up ordering more products than they require. They should be careful to order only the products they need. 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 initiate the process to reduce the delays of delivering the products Organization 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, etc) - Specific offers inside departments. [...]
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