Authors : Marie-Anne Maupin and Gaspar Villard
Today, the Do It yourself sector is in good shape. People are more and more willing to work by themselves and take time to improve their home. Because it’s cheaper and instructive, the market is growing and retailers have to answer to the new demand.
In the end of this blog comparing Leroy Merlin and Brico Dépôt, we can assess than both brands are powerful retailers of the Do It yourself market. They both have their own strength and weaknesses and have the capacities to continue growing according to their own differentiated strategy.
In the end of this blog comparing Leroy Merlin and Brico Dépôt, we can assess than both brands are powerful retailers of the Do It yourself market. They both have their own strength and weaknesses and have the capacities to continue growing according to their own differentiated strategy.
Leroy Merlin, a bright future
Leroy Merlin is probably in the best position to face the future challenges. In term of marketing and values, the skills of the retailer are efficient. First, Leroy Merlin is popular thanks to its conceptual stores which are more and more numerous and inventive. Secondly, the reputation benefits from an excellent customers relationship: the aftersales services is a key factor of success and the brand is very active on social medias such as Facebook with more than 140.000 fans.
We would recommend to Leroy Merlin continuing its marketing and communication efforts. The activities are good and the customer relationship is applauded by the experts and fans. With a brand awareness increasing, we don't see what could happened to Leroy Merlin. The progress have to be pursued in the same direction.
We would recommend to Leroy Merlin continuing its marketing and communication efforts. The activities are good and the customer relationship is applauded by the experts and fans. With a brand awareness increasing, we don't see what could happened to Leroy Merlin. The progress have to be pursued in the same direction.
Brico Dépôt is facing new challenges
On the other side, Brico Dépôt is facing many challenges. Even if the market is in good shape, the crisis is jeopardizing the construction building sector and companies, which are a target of Brico Dépôt are facing difficulties. The concept of depot is still effective and it completes the services of Leroy Merlin or Castorama. There always will be consumers looking for cheap products in good quality, and the brand awareness of Brico Dépôt is acceptable for the market. It’s definitely a key player of the retailers selling hardware and tools in big warehouse in huge quantities.
Our recommendation for Brico Dépôt, in order to continue being a leader of the DIY market, would be to start being more consumer friendly. For now, the company is too weak on the social medias such as Facebook or Youtube. In comparison to Leroy Merlin, even if the brand awareness of Brico Dépôt remains good, the fan community is definitely not wide. The retailer should hire new community manager and communicate more frequently about the products, the promotions or the consumers perceptions. Efforts have already being done, but it has to be stronger. Of course, the concept of big dépôt store have to be preserved, but it does not prevent the brand to be consumer friendly.
Our recommendation for Brico Dépôt, in order to continue being a leader of the DIY market, would be to start being more consumer friendly. For now, the company is too weak on the social medias such as Facebook or Youtube. In comparison to Leroy Merlin, even if the brand awareness of Brico Dépôt remains good, the fan community is definitely not wide. The retailer should hire new community manager and communicate more frequently about the products, the promotions or the consumers perceptions. Efforts have already being done, but it has to be stronger. Of course, the concept of big dépôt store have to be preserved, but it does not prevent the brand to be consumer friendly.
The national conflicts over the Sundays opening
Today, one major problem that Do It yourself retailers are facing is the Sunday opening. There is an important political debate in the French government. Currently, a lot of stores are opened on Sundays to answer to the demand of the consumers, even if the law is about to change. The retailers need the sales of the Sundays. Indeed, most of their consumers want to work by themselves on weekends. The turnover is often the highest on Saturday and Sundays.
The conflict is important and for example Bricorama has been suing Leroy Merlin which allows its employees to work on Sundays whereas it’s forbidden or unfair. According to the Bricorama lawyers, only Leroy Merlin and Castorama have the authorization of Sunday opening and this exemption would be unfair and cost 25 million euro to Bricorama. For now the Bricorama demand has been rejected but the debate is not over.
The conflict is important and for example Bricorama has been suing Leroy Merlin which allows its employees to work on Sundays whereas it’s forbidden or unfair. According to the Bricorama lawyers, only Leroy Merlin and Castorama have the authorization of Sunday opening and this exemption would be unfair and cost 25 million euro to Bricorama. For now the Bricorama demand has been rejected but the debate is not over.
Sources :
http://lexpansion.lexpress.fr/economie/bricorama-leroy-merlin-et-castorama-se-disputent-le-travail-dominical-au-tribunal_417256.html
http://www.lemonde.fr/economie/article/2013/09/28/leroy-merlin-et-castorama-determines-a-ouvrir-ce-dimanche_3486643_3234.html
