Acquisition-fuelled growth

29.05.2007

Bricorama’s founder Jean-Claude Bourrelier has estab-lished the success of this French DIY group through deliberately making strategic acquisitions

The group is represented in France by the Bricorama (66 stores) and Batkor (9) retail chains and, since taking over the Wickes stores, also has a presence in Belgium (21 outlets) and the Netherlands (19). Including its nine franchised stores, the group has an overall selling space in excess of 330 000 m² and employs a workforce of more than 2 400.
Last year the Bricorama group, which has its headquarters at Fontenay-sous-Bois, generated double-figure sales growth: gross sales rose by 15.3 per cent to 436 mio euro (FRF 2 860 mio). Growth of 20 per cent to 316 mio euro was greatest in France, but developed more moderately in the markets of the Benelux countries, where sales rose by 4.25 per cent to 120 mio euro. Reported for the first quarter of this year is a sales increase of 6.6 per cent over the same period last year. The French stores achieved comparable growth of 5.7 per cent.
Bricorama stores are sited in towns with 35 000 to 40 000 inhabitants.
The largest proportion of sales in the Bricorama stores is achieved by décor products (25 per cent), followed by hardware and plumbing (13 per cent each) and the areas of electrical (14 per cent) and gardening (12 per cent). Bringing up the rear are timber (10 per cent) and building materials (4 per cent). New to the product offer, which consists of the eight product families just listed and around 70 000 items, are own brands, which were developed last year. They are available under the respective names of the Bricorama and Batkor chains. Whereas Bricorama stocks own brands in almost every product category, the range is less comprehensive in the Batkor stores.
In its Batkor stores the Bricorama group is going for the discounter concept and product merchandising is orientated to the cash & carry style. Product turnover compensates to a great extent for lower margins in these stores. Communication activities include the quarterly publication of a 48-page catalogue, which highlights a comprehensive seasonal range of products for consumers and trade customers alike. There are in addition eight special theme promotions each year, designed to boost sales in the departments concerned (plumbing, timber, etc). The Batkor stores carry 18 000 items on an area of 2 000 m² to 3 000 m², and 30 per cent of sales is generated through trade customers. The proportion of value sales achieved by indi- vidual product categories correspondingly differ from the results in Bricorama stores. The biggest share of 22 per cent is scored by the plumbing department, followed by decoration (20 per cent), building materials (14 per cent), timber (13 per cent) and electrical and hardware (10 per cent). The category of tools at 8 per cent is ahead of garden products, which account for a 3 per cent share of sales.
The Bricorama store concept is adapted to the selling space available and customers’ expectations. The stores are mainly situated in towns with a population of 35 000 to 40 000, though in centres of industrial concentration as well. Town centre outlets have floorspaces ranging from
1 000 m² to 2 000 m², presenting themselves as neighbourhood convenience stores. Outlets with floorspaces of 2 000 m² to 3 500 m² are situated out of town. A common product offer is stocked in stores with a selling space in excess of 3 500 m² (of which 1 500 m² goes to building materials and 500 m² to gardening).
Batkor is the Bricorama group’s discounter arm.
Beyond the border
In the last few years Bricorama has gone to great lengths to adjust the stores in the Benelux countries of Belgium and the Netherlands to the group’s image, and in the first half of 1999 these stores were provided with the Bricorama logo. The product mix was also considerably expanded from 4 000 to 18 000 items following the takeover of the Wickes stores. As a result of the particular structure of the market, Bricorama Benelux is positioned somewhere between Bricorama and Batkor.
In Holland the network of branches was extended last year by one new opening in Uden to a total of 19, five stores were reformatted to the Bricorama image. The nine biggest stores had already been converted in 1998. In Belgium ten stores were reformatted and, following one new opening in St.-Niklaas, the total number of DIY stores rose to 21. Store reformatting is being continued this year as well.
Development of the Bricorama group
1975 Jean-Claude Bourrelier opens the first store1983 Creation of Batkor marketing arm1990 Acquisition of Rictoral chain and seven new openings1991 Four stores of the Projet chain taken over1992 Acquisition of the 10 Bricorama stores1995 Purchase of 16 stores belonging to the Bricaillerie group1996 Stock market flotation1997 Acquisition of the Wickes stores in the Netherlands (18), Belgium (19) and France (2)1998 Takeover of six Outirama stores and one store in Bondy, plus one new opening in Belgium1999 Bricorama logo introduced in Benelux, four new openings in France, two in Benelux
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