Author : Gaspar Villard
In term of building construction, the market is not very good. There are less project and companies have less money to spend. Concerning the French families, they have a decreasing purchasing power. But this is not necessarily a bad new for retailers because it means that people are more inclined to work by themselves. They don’t have enough money to pay for an expert. Thanks to the internet, there are so many web sites which are explaining how to renovate a house or how to plant trees and flowers that experts can be sometimes useless.
The weather has also an importance in the turnover of retailers. During the summer of 2013, because of the rainy week ends, people stayed at home and did not spend money on housing improvement or garden products.
HOW DOES RETAILERS ADAPT TO THIS NEW TRENDS ?
For the second semester of 2013, the turnover of Brico Dépôt has decreased of 2.6% wheareas its partner Castorama has a stable one(787M).
A new Brico Dépôt store has been opened in the beginning of december in the south of France. The new store, large of about 7000 square meters, will employ 39 experts and will try to compete with the other actor of the Do It yourself market.
A new Brico Dépôt store has been opened in the beginning of december in the south of France. The new store, large of about 7000 square meters, will employ 39 experts and will try to compete with the other actor of the Do It yourself market.
The strategy of Brico Dépôt stays the same, good prices and a deep stock available at any time. But how does the brand gets better prices than Leroy Merlin or Castorama ?
Brico Dépôt is a big stock where there are few references in the shelves, covering three range of quality : bottom, medium and top of the range. The retailer knows what his customers want and because there are only 10.000 references, the quantity available is more important and the prices lower.
The other good idea performed by Brico Dépôt to lower the prices in the decoration of the store. There are no big ads, no nice televisions, no advisers. It’s like a big and ugly hangar where products are in a mess. The consumer as to find what is looking for by himself.
Brico Dépôt is a big stock where there are few references in the shelves, covering three range of quality : bottom, medium and top of the range. The retailer knows what his customers want and because there are only 10.000 references, the quantity available is more important and the prices lower.
The other good idea performed by Brico Dépôt to lower the prices in the decoration of the store. There are no big ads, no nice televisions, no advisers. It’s like a big and ugly hangar where products are in a mess. The consumer as to find what is looking for by himself.
The competitors, such as M. Bricolage or Leroy Merlin, are aware of this strategy and the opening of new Brico Dépôt stores.
To face this competition, Leroy Merlin is moving fast. Because the target is amateurs who want to improve their home, Leroy Merlin is very active for instance on Social Networks. With about 150.000 fan on Facebook, the community is big and it helps to get closer to the consumer.
To face this competition, Leroy Merlin is moving fast. Because the target is amateurs who want to improve their home, Leroy Merlin is very active for instance on Social Networks. With about 150.000 fan on Facebook, the community is big and it helps to get closer to the consumer.
Even if there is the crisis, the Do It Yourself sector is doing good because people have less money to pay professionals. So they work on their own. Nevertheless, Leroy Merlin or M. Bricolage for instance are always evolving with the market. New stores, betters services, lower prices, more references.
Source :
http://www.bricodepot-recrute.com/concept.php
https://www.facebook.com/leroymerlin
http://www.insee.fr/fr/themes/document.asp?reg_id=0&ref_id=ip1386&page=sdb#def2
http://www.huffingtonpost.fr/2013/10/29/ouverture-dominicale-appel-refere-bricorama-leroy-merlin-castorama_n_4172464.html
http://www.bricomag-news.com/index.php/en/distributeurs-197/distributeurs-bricolage/1434-kingfisher-des-resultats-positifs
http://www.toute-la-franchise.com/vie-de-la-franchise-A9711-le-marche-du-bricolage-decroche-en.html
Source :
http://www.bricodepot-recrute.com/concept.php
https://www.facebook.com/leroymerlin
http://www.insee.fr/fr/themes/document.asp?reg_id=0&ref_id=ip1386&page=sdb#def2
http://www.huffingtonpost.fr/2013/10/29/ouverture-dominicale-appel-refere-bricorama-leroy-merlin-castorama_n_4172464.html
http://www.bricomag-news.com/index.php/en/distributeurs-197/distributeurs-bricolage/1434-kingfisher-des-resultats-positifs
http://www.toute-la-franchise.com/vie-de-la-franchise-A9711-le-marche-du-bricolage-decroche-en.html
