Leroy Merlin is a prominent French retailer specializing in home improvement and gardening products. Founded in 1923 by Adolphe Leroy and Rose Merlin in Nœux-les-Mines, France, the company has grown into a leading name in the DIY (Do It Yourself) sector. Initially operating under the name “Au Stock Américain,” the business focused on selling surplus American military supplies. Over time, it expanded its offerings to include a wide range of construction and home renovation materials.
In the 1960s, Leroy Merlin pioneered the concept of self-service in the home improvement retail sector in France, allowing customers to browse and select products independently. This innovative approach contributed significantly to the company’s growth and set a new standard in the retail industry. By the late 1970s, Leroy Merlin had established 33 stores across France. In 1979, the Mulliez family, known for owning the Auchan supermarket chain, acquired a stake in the company, leading to further expansion and development.
Today, Leroy Merlin operates as part of the Adeo Group, formerly known as Groupe Leroy Merlin. Adeo is a holding company that encompasses various brands specializing in home improvement and decoration, including Bricoman, Bricocenter, Weldom, and KBane. The Adeo Group is majority-owned by the Mulliez family, holding 85% of the shares, while the remaining 15% is owned by company employees. This structure reflects a commitment to involving employees in the company’s growth and success.
Leroy Merlin has a significant international presence, with nearly 400 stores in 12 countries. The company operates in France, Spain, Italy, Poland, Portugal, Greece, Cyprus, Romania, Ukraine, China, Brazil, and South Africa. This extensive network positions Leroy Merlin as a major player in the global home improvement retail market.
In France, Leroy Merlin is the market leader in the DIY retail sector. As of 2017, the company reported sales of approximately €6.64 billion, marking a 7% increase from the previous year. At that time, Leroy Merlin operated 137 stores across the country.
The company’s product range is extensive, covering six main sectors: DIY, building, gardening, sanitary equipment, renewable energy, and interior decoration. This diverse offering caters to a wide customer base, from individual DIY enthusiasts to professional contractors.
Leroy Merlin is also recognized for its innovative approach to retail operations. For instance, the company has implemented real-time delivery tracking systems to enhance in-store operations and improve collaboration across its network. By providing store teams with accurate delivery information, Leroy Merlin has increased punctuality by 20 percentage points and reduced call volumes to customer support teams by 25%.
In recent years, Leroy Merlin has focused on sustainability initiatives. In 2022, the company identified 36 French stores with roofs suitable for photovoltaic panels as part of its solar strategy. This move aligns with the company’s commitment to renewable energy and reducing its environmental footprint.
However, the company has faced controversies, particularly regarding its operations in Russia. Following the 2022 Russian invasion of Ukraine, many international companies withdrew from Russia. Leroy Merlin, which operates 143 stores in Russia, chose to continue its operations, leading to criticism and calls for boycotts. The company stated that closing its Russian operations would be considered “premeditated bankruptcy” and emphasized its responsibility towards its 45,000 employees in the country.
Overall, Leroy Merlin’s blend of innovative retail strategies, international expansion, and commitment to sustainability has solidified its position as a leader in the home improvement retail industry. Despite facing challenges, the company’s adaptability and focus on customer needs continue to drive its growth and success.
