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Leroy Merlin plans to double Russian store network in two years
Leroy Merlin in Russia plans to nearly double its network of DIY stores over the next two years. Vincent Gentil, Leroy Merlin Managing Director, revealed the plans to Vedomosti. The retailer plans to open 10 stores a year, at an average cost of RUB1 billion (USD32.5 million) each.
Expansion will be mainly from its own funds, without the assistance of parent company Groupe ADEO (part of Groupe Auchan), and with loans from Russian banks. According to Gentil, the retailer, which entered Russia in 2004, has so far invested more than EUR630 million (USD818 million) in developing the Russian business.
Leroy Merlin is now moving into regional centres with smaller populations, said Gentil. "Earlier this year we opened our first store in Tver. This store is seeing high demand and excellent results," he said. Leroy Merlin currently operates 26 DIY outlets. Only eight are on rented sites, with the rest operating from wholly-owned locations.
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