Mémoire leroy merlin anglais

Pages: 15 (3609 mots) Publié le: 29 mars 2011
How a company like Leroy Merlin can reconcile “increase in profit” and “just in time” method?

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Mathlouti Farid Mémoire session 2008


I. Presentation of Leroy Merlin 

II. Activities of Leroy Merlin

III. The current state layout

a. Purchase Process

b. Sales Process

c.Organisation of the store

IV. Application of “Just In Time” at Leroy Merlin Strasbourg

V. Recommendations (implementation plan)

a. Appropriate resource levels

b. Systems and procedures

c. Organisation and structure

d. Business and customer needs.

VI. Conclusion
I. Presentation of Leroy Merlin

Leroy Merlin sells “do-it-yourselfproducts” in 13 different areas like painting, sanitary, materials…
The Leroy Merlin group is the 6th in the world in this sector. 4

Its turnover increased as we can see on the graphic below from 2654 millions of euros in 1998 to 4088 millions of euros in 2002.

The turnover evolution

The number of stores

The number of stores has got an annual average growth target of 15%.

Leroy Merlinof Strasbourg

The Strasbourg Leroy Merlin store was created in 1986 and expanded. It is composed of 7 managers whose one director of the store named Frederic Despas, one manager control Fares Benguirech, and 8 sector managers responsible for from 1 to 3 areas.

Moreover, the store offers 90 000 references spread around the 13 areas and achieves a turnover of 25 millions euros. Thus, it is the40th in the 80 Leroy Merlin stores in France. By its 6500m², it is 50th comparing to the other Leroy Merlin stores in France.

Its competitors 

Leroy Merlin has got various competitors which are:

• Its main competitors are the « Hard Discounters » which offer price vary low.
In 2008 a « Brico-Dépôt » store has settled in front of Leroy Merlin La Vigie, that is provoked adecrease in the turnover of Leroy Merlin. Its reaction in front of this problem were to respond by prices more competitive, to propose a fidelity card and offer a wider range of products with for example its decoration area which doesn’t exist in Hard Discounters.

• Castorama: It’s the main competitor of Leroy Merlin. Meanwhile, Leroy Merlin has got a decoration area more important than Castoramaand proposes a complete range of products If a customer wants to change his bathroom, he can find all accessories wanted for example tiled floor, a wall paper, a soap dish…

• Bricorama, Mr Bricolage: They are also competitors of proximity but they are smaller than Leroy Merlin.

Caracteristics of Leroy Merlin Strasbourg 

Different elements which characterize Leroy Merlin Strasbourgare:

• This city is a good commercial place with the benefit to be near Strasbourg.
• The customers come from rich areas and also from Strasbourg and Colmar, less rich parts. The buyers are individuals, professionals (artisans…), and also public services (town hall, schools…).
• The customer spends in general about 49€.
• The stock average is about 127 days. That is why itsobjective is to decrease of 11 days in order to achieve the regional average.

Its competitive advantage

The choice: Indeed, 70 % of the customers attend Leroy Merlin for his choice by its 90 000 references

The price: 35 % of the customers of Leroy Merlin are interested by the prices, from low quality products to high quality

The localisation: 40 % of the customers go to Leroy Merlin forits proximity

II. Activities of Leroy Merlin

Current activities:

■ Sales and advices

It is the philosophy of Leroy Merlin. Indeed, the salesman is responsible for having the right product at the right time in order to avoid out of stock. By this fact, the salesman has an essential role of adviser.

■ Custom made
The customer can order a product specially adapted to his...
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