New formats and ranges

After the success of the growth policy in 2007, which saw a 17 per cent increase in store numbers, the years that followed, 2008 and especially 2009, marked a time of reorganisation that has modified the network of outlets. Certainly the Adeo group's acquisition of the Castorama stores, which numbered more than 30, served only to accelerate a process that had already been initiated: the struggle for differentiation. To all intents and purposes, Italian DIY retailing is over 50 per cent covered by Adeo with Castorama and the other brands, Leroy Merlin, Bricocenter and Bricoman - a strong combined presence that has caused a regular earthquake, both in retailing and in manufacturing. Several other events apart from this major happening have occurred in the Italian marketplace: Bricoman has entered the field from France, with two stores at present in Sardinia and Piedmont, and a third expected to open in Sassari (also Sardinia). Then there is Jo-ho with five stores currently, and finally the 26 outlets of the new Ital brico chain established by the CIO (Centro Italiano bricolage) cooperative. This came about through a split within the Puntolegno cooperative at the end of 2008. In this decisive year there was an increase of 76 sales outlets on 2007, with a steadily growing curve in both halves of the year. However, this was not repeated in the first six months of 2009, when the increase resulted in "only" 19 new stores. These included five multiple stores and 14 owner-operated outlets. A trend reversal was already evident in 2008 though, when the tally came to 48 privately-owned stores and 18 multiple outlets, whereas the previous year had seen the opening of 30 stores that were owner-operated and 35 belonging to multiples or franchise systems. Even though the network failed to show the same growth as experienced in previous years, it is nevertheless true that the chains have been working hard to re-define their formats and product ranges. For instance, the two newcomers Bricoman and Jo-ho immediately introduced other formats and product ranges that were geared to different target groups. One was developed for professionals, but is much appreciated by private customers as well. The second is intended to be a modern interpretation of the hardware shop adapted to a self-service format. But the latest Leroy Merlin store should not be forgotten, either. Situated in Assago, this is Italy's biggest DIY store to date - and it features a very interesting concept, being…