Leroy Merlin in R1bn SA expansion
French home improvement retailer, Leroy Merlin, has opened a new store in Little Falls, Roodeport, Johannesburg. This is the brand’s second store in an active pipeline that should materialise into four stores in South Africa by 2020. The total investment is projected to be R1bn, with further nationwide expansion on the cards, beyond 2020.
The store is on a 45 000m2 campus with a sales floor of 9 000m2 and offers a selection of construction, hardware, tools, kitchen, bathroom, home décor and garden products. Thirty percent of the store’s entire range is sourced from the Leroy Merlin supply chain in France and 70% of stock is locally sourced: 30% from international brands that have SA operations and 40% produced and manufactured locally.
“South Africans love their homes and are constantly doing improvements, from facelift renovations to complete structural changes. We uncovered the extent to which that passion influences their hardware purchase behaviour before setting up our first store in Greenstone in 2017,” says Cedric Sennepin, Leroy Merlin South Africa CEO. “Ordinary South Africans welcomed us into their homes and, through over 600 home visits countrywide, we learnt people’s needs and the existing gap in hardware retail. It was the most- insightful research; we listened as people talked us through their aspirations for their homes and their hardware retail experiences.”
The store features a Drive-Thru Building Yard for customers who are looking for a quick in-and-out experience when purchasing construction material. This section spans 4 700m2 and from it, customers can pull up with their vehicles, select and load products they need, and pay up at the counter as they exit.