Continuing growth

Growth was relatively subdued in the first half of 2007 with just eight new stores, but the second half of the year is being heralded as extremely dynamic. In fact, it might even approximate the vitality of 2006, the year when there were 64 new openings in the second six months alone.A new competitor has entered the marketplace. Bricomania, the distribution channel founded by the Famigliulo Group in Calabria, already boasts a total of 38 members and is showing an extremely dynamic rate of growth.At the end of June 2007 there were 583 DIY stores altogether in operation in Italy. The number of franchise stores was on the decline in the first six months, going down by three to 202 between December 2006 and June 2007. However, the second half of the year experienced a positive boost when two trading formats, the French Adeo Group's Bricocenter line and the Brico Io stores belonging to Marketing Trend, a company owned by Coop Lombardia, engaged in a regular "battle for the latest new opening". Brico Io and Bricofer are showing a rapid pace of expansion, although the impetus has somewhat slowed down. Bricofer has announced strategic changes: the buying department has been moved to Milan, smaller franchise stores are being weeded out, and great care is being taken to open corporate stores of 3 000 m² or more in size. Proof of the Rome-based group's new strategy is the most recent opening of a 3 000 m² store in Verona. Coinciding with this event came the announcement that the company is interested in further expansion in northern Italy.The big names also demonstrated positive progress. In this group, Obi topped the list with three new openings (Somma Lombardo (Va), Meran and Andria in the province of Bari). Castorama was dominant in the north with the renovation and introduction of its new format in Cremona, as well as a new opening in Piacenza. Leroy Merlin opened its fourth outlet in Fiumicino, Rome, and its fourth in Lombardy, this one in Rozzano in the province of Milan. As regards the average sales area per store, Leroy Merlin retains its leading position with an increase of 43 m² to 8 750 ² The average sales area of DIY stores in Italy went up from 2 237 m² in December 2006 to 2 250 m² in June 2007. Trading formats like Punto Brico and Bricocenter are also following the trend towards larger sales areas: even though their total number of stores is declining, new openings have raised the average sales area per store. A similar pattern is evident at Bricofer…