Approval for Leroy Merlin’s stake in Domaxel

The French ministries of economic affairs, finance and industry have given their approval to the 50 per cent stake acquired by the French DIY operator Leroy Merlin in the Domaxel cooperative. The aim of their working together is to strengthen and further develop a concept for neighbourhood stores, which envisages both corporate stores and a network of independent trading companies as well. Philippe Hyvert has been named Président du Directoire of Domaxel Achats & Services. Yvon Jolivet, Directeur Général Délégué of Leroy Merlin, is to be deputy chairman of the Domaxel supervisory board. Christian Giro is remaining as chairman.
According to a press announcement, Leroy Merlin is to contribute know-how in matters of merchandising, marketing and buying, as well as its experience in utilizing the synergies of its neighbourhood formats Bricocenter, Akí and Obi. Domaxel is contributing its knowledge about the neighbourhood market, in the management of small and medium-sized businesses, logistical know-how and experience from working in partnership with independent retailers. Domaxel has 447 stores in France, which operate under the Weldom format in the consumer segment and Dom-Pro in the contractor business. Leroy Merlin, the French market leader, operates 280 stores in eight countries and recorded sales of around € 4.8 bn in 2003.