Advertise with

Leroy Merlin will be seeking to lay a foundation in SA when it officially opens its first retail store in the second quarter of 2018.
Leroy Merlin will be seeking to lay a foundation in SA when it officially opens its first retail store in the second quarter of 2018.

Leroy Merlin to give SA retailers a run for money


By Palesa Vuyolwethu Tshandu - Jun 28th 2018, 11:03

French homeware improvement retailer Leroy Merlin will be seeking to lay a foundation in SA when it officially opens its first retail store in the second quarter of 2018. 

The retailer, which currently operates a pop-up shop in Greenstone Edenvale, as well as an online store, is set to come in direct competition with Cashbuild and Massmart-owned Builders Warehouse.

The opening of Leroy Merlin will make it the third consumer-facing French retailer to open in SA recently, after Decathlon in the sporting goods sector and bakery chain Paul, which is looking to expand in Gauteng.

Almost 29 out of the 40 companies in the French stock market index have already established in SA.

Leroy Merlin SA CEO Cedric Sennepin said the opening of the first store was underway. "Two other sites under construction for opening in 2019 and a fourth store beginning 2020, all in Gauteng for the moment."


Explaining the decision to open in SA, he referred to the potential for home improvements and the level of earnings by the population. "We have the capacity not only to steal market share but increase the global market with new practices, new offers and services, including workshops to learn how easy it is for DIY to democratise."

"It seems that the whole spectrum of consumers is currently under huge pressure. It is difficult to speculate who has the most appetite for growth, as I think everybody has the appetite but is hindered by the tough economic environment.

I am sure we will see a good international competitor [Leroy Merlin] have an impact on sales of the other competitors, especially at the middle to higher end of the market"
, says Cashbuild CEO Werner de Jager

Leroy Merlin is a part of Group Adeo, which employs 89,000 people across the world, including in 32 autonomous companies in 13 countries dedicated to 15 retail chains.

In its local online store, appliances range from heaters, drills and workshop equipment, as it aims to position itself as a low-to-middle income DIY store.

SA is also the first country in sub-Saharan Africa with the highest number of French companies, ahead of West African countries such as Ivory Coast.

William Roos, the economic counsellor of the French embassy said: "French companies in the retail sector have shown their ability to develop their activities at international level. SA is a major country to invest in, it has a strong internal market and it is a good gateway to the Southern African region and more largely to all sub-Saharan Africa. Therefore, it is only logical that French business would want to invest in SA."

Roos said that part of the French group’s interest in leading markets could be attributed to SA being considered as a mature market with a significant middle class.

Business Live 

Read more about: retailer | retail | markets | leroy merlin | homeware | diy | business

Related News

The changing UX and CX landscape
13/09/2019 - 16:16
An exceptional customer experience (CX) builds a foundation of loyalty and trust. Similarly, a positive user experience (UX) encourages brand connections with people wanting to come back for more. And yet, local organisations must learn to embrace these more effectively to differentiate themselves from their competitors.

The role of the stokvel in the organisation
13/09/2019 - 10:14
South Africans are well-known for their participation in stokvel saving schemes where members contribute a fixed monthly amount that is paid out to a specific member on a specified date. Nicol Myburgh, Head of the HR Business Unit at CRS Technologies, says employers can integrate these payments into existing processes to make it safer and more convenient for those members.

Improving your restaurant's ambience with these 5 tips
13/09/2019 - 09:44
Owning a restaurant is much more than ensuring that your guests are well-fed. It is about the experience you offer your customers. For instance, have you ever been to a restaurant where everything is just right? And by everything, we mean the decor, lighting, food, and music. This is the first impression you should aim to achieve as a restaurant owner.

Footgear gets go-ahead to buy Edcon's footwear brands
13/09/2019 - 09:24
Footgear, the South African retailer of branded and non-branded footwear, on Thursday received the green light to purchase the assets and business associated with Edcon Limited’s Edgars Active and High Key brands.

4 reasons to be hopeful about South Africa’s economy
12/09/2019 - 14:40
Markets responded positively to South Africa’s economic growth rebounding in the second quarter, up 3.1%, and 0.9% for the year to June 2019.