Description
Strong brand awareness : legitimacy
(as a pioneer, a leader), seriousness
• Leader in overall “Brand Capital” Remember „Chez Casto, y a tout ce qui faut‟
(„At Casto‟s, there‟s everything you need‟)Leader in Hardware
• Leader in Gardening
• Competitive in Building
• Range of choice
• Quality Fast development
• Choice to develop internationally
February 2012
2
Agenda
? General presentation of Kingfisher France
? Castorama
? Brico Dépot
3
Key Figures
Market shares in France
Kingfisher France
ADEO France
(*)
Mr Bricolage
Bricomarché
Bricorama
Source : UNIBAL – 2010
(*) Excluding Weldom
4
Key Figures
France Region (excluding Spain)
23,4%
2007
Market share (1)
Sales (£bn)
Retail Operating Profit (£mil)
3,2
23,8%
2008
3,9
237 283
2009
24,3%
4,2
322
CASTORAMA (£bn) 1,7 2,1 2,2
BRICO DEPOT (£bn) 1,5 1,8 2,0
All figures are reported data
(1)Source UNIBAL: Market share based on calendar year
(2) excluding Weldom
ADEO 21,2
2
Mr Bricolage
Bricomarché
Bricorama
7,2%
7,9%
2,5%
20,5%
2
7,3%
7,9%
2,1%
Store number 98 99 101
Store number 89 98 100
Store number 186 197 201
2010
4,2
348
2,3
1,9
101
102
203
24,6%
22,9%
2
8,7%
7,7%
2,6%
Sales
+9,2%/y
(CAGR 2006/11)
ROP
+14%/y
(CAGR 2006/11)
5
Market context
Kingfisher outperforms a market that is recovering...
12 rolling months - comparable store
3,1%
1,9%
-6,0%
-5,0%
-4,0%
-3,0%
-2,0%
-1,0%
0,0%
1,0%
2,0%
3,0%
4,0%
5,0%
nov-08 nov-09 nov-10 nov-11
Kingfisher France Market (Banque de France)
6
cumulative 12 months
160 000
180 000
200 000
220 000
240 000
260 000
nov-08 nov-09 nov-10 nov-11
Authorized Started
Market Context
… and where demand on real estate market is supportive
Started
Authorized
Market recovery of existing homes
Nb of transactions existing homes
(cumulative 12 months, in OOO)
Number of new Individual Homes
construction is increasing
Sources : Ministère du logement, Banque de France
7
The French story
Castorama Castorama + store transferred to BD
0
10
20
30
40
50
60
70
80
90
100
110
120
130
7
15 Briker
1992
1969 1971
1977
20 stores
32 transferred to
brico dépot
Store
number
Brico Dépôt
Poland
Italia
1
9
6
9
1
9
7
1
1
9
7
3
1
9
7
5
1
9
7
7
1
9
7
9
1
9
8
1
1
9
8
3
1
9
8
5
1
9
8
7
1
9
8
9
1
9
9
1
1
9
9
3
1
9
9
5
1
9
9
7
1
9
9
9
2
0
0
1
2
0
0
3
2
0
0
5
2
0
0
7
2
0
1
1
0
61
103 102
8
The French story
Castorama : a position which no longer fits the market in 2003...
Historic Strengths 2003 limits
Brand image
• Strong brand awareness : legitimacy
(as a pioneer, a leader), seriousness
• Leader in overall “Brand Capital”
• Masculine & technical identity
• In a market undergoing „feminisation? and
tending towards decorative & showroom
Communication
• Remember „Chez Casto, y a tout ce qui faut?
(„At Casto?s, there?s everything you need?)
• Has not followed the evolution of the
clientele, who has moved on from just „home
improvement repairs? to „home
improvement projects?
Range /
Products /Prices
• Leader in Hardware
• Leader in Gardening
• Competitive in Building
• Range of choice
• Quality
• Weaker Decorative
• Weaker Showroom
• Lack of clarity in the structure of the ranges
• Bad price positioning
Stores/
Merchandising
• Fast development
• Choice to develop internationally
• Heterogeneous store portfolio
• Lack of investment and maintenance
9
The French story
...a need to launch an ambitious plan to ensure achievement of results
2003 2004 2005 2006 2007
Efficiency
Supply Chain
Price
Offer
Store
Investment
CPR
Redefine principles
and organisation
Return to basics
through strong actions
Improve /
accelerate
10
The French story
Brico Dépot: A decade of success with double-digit growth…
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
3 000
2 500
2 000
1 500
1 000
500
10
20
30
40
50
60
70
80
90
100
2002-2007 CAGR
19.3 % Sales
12.2 % store numbers
# stores Turnover € m (tax incl.)
#stores Turnover
11
Market
Appropriate
business
model
Innovative
positioning
Group
support
The French story
… offering the opportunity to develop the model quickly...
12
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
10
20
30
40
50
60
70
80
90
100
12.1%
17.7%
7.3%
2.8%
1.4%
-3.6%
-5.4%
# stores
2008-2009 CAGR
1.1 % Sales
6.7 % store numbers
LFL growth #stores Turnover
3 000
2 500
2 000
1 500
1 000
500
Turnover € m (tax incl.)
The French story
…but growth levelled off since 2007...
13
Market
Inappropriate
business
model
Challenged
position
Critical
size
The French story
…the model faced to its own limits...
14
The French story
…encouraging us to develop a 2 steps strategy...
15
Two companies Two concepts Two business models
One Strategy
16
The French story
A customer approach for each Opco...
17
The house to build The house to live in
Our conviction
… in a home market that can be split into two areas …
18
Maintenance
Lasting
Strong
Pleasantness
Fleeting
Nice
The deco house The heritage house
The house to build The house to live in
Our conviction
… with different customer expectations
19
Technical offer
Short areas
Durability / Reliability
Deco offer
Showroom areas
Change / Disposable
The house to build The house to live in
Our conviction
… and different retail answers
20
T
h
e
h
o
u
s
e
t
o
b
u
i
l
d
The house to live in
Deco showroom offer
Showroom areas
Change / Disposable
Technical offer
Short areas
Durability / Reliability
21
T
h
e
h
o
u
s
e
t
o
b
u
i
l
d
The house to live in
Deco showroom offer
Showroom areas
Change / Disposable
Technical offer
Short areas
Durability / Reliability
22
Two differentiated businesses in terms of positioning
? Heavy DIYs and professionals
? 20/80 for building and renovation
? Private customers / female market
? Everything for the fitting out of the
house and the garden
23
? 10-12 000 product references
? Low prices, everyday
? Products available in great quantities
? >50 000 product references
? 1st price / good / better / best
? Selection and collections
? The 4 house-styles
Two differentiated businesses in terms of offer
24
Kingfisher France
Working together
Create links
Create sources of
short-term
improvement
Build a
performing and
long-term
development
• Opco Board meetings
• KF France Board
• Operational cross-opco
steering committees
• Purchasing synergies
• GNFR synergies
• Sharing best practices
• Empowerment through profit sharing
• Store development strategy
25
Kingfisher France
Delivering value together
134
186
215
230
206
237
283
322
348
100
150
200
250
300
350
400
2003 2004 2005 2006 2007 2008 2009 2010 2011
6,9%
8,3%
7,0%
€mil
% Sales
169 stores
205 stores
179 stores
26
Two companies Two concepts Two business models
One Strategy
CASTORAMA
FRANCE
Our strategic
choices
HOW TO SPREAD THE DIY MARKET
TO THE LARGEST NUMBER?
HOW TO IMPROVE OUR ECONOMIC MODEL?
2003 Today
REVAMP
PRODUCTS & SERVICES
INNOVATION
EMPLOYEE COMMITMENT
RANGE
REVIEWS
Henin Beaumont Villabe Cormeilles La Défense Brest Toulon Antibes
Learning from our EXPERIENCE
…Movement creates growth
Lormont
PERMANENT
REVAMP
PRODUCTS
& SERVICES
INNOVATION
EMPLOYEE
COMMITMENT
Learning from our EXPERIENCE
…Movement creates growth
4 GROWTH DRIVERS
Additional turnover
shares
PRODUCTS &
SERVICES AND
INNOVATION
REVAMP
EMPLOYEE
COMMITMENT
0%
100%
Our BELIEFS
The obsolescence of too much choice
The power of self-service
Services and myths
Greater choice is obsolete if it is not comprehensible
and accessible for the customer
Self-service is a source of growth and productivity
Services constitute an economic model that is generally
dilutive in our business line
…Strengthen our fundamentals
Develop purchase power
Invest in our prices, so that DIY remains a way
to save money easily for our customers
Learning from the MARKET
A slowing market BUT…
87%
WOULD LIKE HELP
WITH THEIR DIY PROJECTS
Lack of training is the main factor
preventing more DIY activity
60%
WAIT FOR
SIMPLER PRODUCTS
TO BUILD OR USE
Castorama IFOP survey of 1,007 French people from 1 to 7 April 2011
…that still has great potential
DIY FRENCH MARKET TREND
Source: Unibal – April 2011
DIY FRENCH MARKET TREND
Source: Unibal – April 2011
90
100
110
120
130
140
150
2002 2003 2004 2005 2006 2007 2008 2009 2010
Total DIY Gardening
In constant €. Base 100 in 2002
Learning from our ENVIRONMENT
What role will the store
play in the future?
…A multi-channel society
? Sharing know-how
? Product simplification
? Use of social networking contacts
? Strengthening the in-store experience
(immediacy/sensory experience)
The VIRTUAL
The REAL
Stores:
53.7M
contacts in
2010
Forums:
+ than 3,5M
unique visitors
since 1 June 2011
Website:
+ than 65M visits
in 2011
Facebook:
+ than 35,000 fans
Castorama application:
475,000 downloads
50,000 unique users
per week since 2010
Castorama videos:
+ than 1.7M views since 2010
Search engines:
+ than10M product pages consulted
Troc’Heures Community:
3,360 registrations
1,150 barters
BELIEFS
EXPERIENCE
ENVIRONMENT
STRATEGIC
DIRECTION
Our VALUES
CREATIVITY
SIMPLICITY
AUTONOMY
COMMITMENT
Our STRATEGIC PLAN
INCREASE the SIMPLICITY
and the AUTONOMY
INNOVATE
SHARE the KNOW-HOW
STIMULATE GROWTH
SPEAK to EACH OTHER
The FUNDAMENTALS of
our BUSINESS
EVERYTHING UNDER
the SAME ROOF
SELF-SERVICE SALES
CHOICE
MASS SALES
PROFITABLE SERVICES
INTERNAL PROMOTION
Our VALUES
CREATIVITY
SIMPLICITY
AUTONOMY
COMMITMENT
Our STRATEGIC PLAN
INCREASE the SIMPLICITY
and the AUTONOMY
INNOVATE
SHARE the KNOW-HOW
STIMULATE GROWTH
SPEAK to EACH OTHER
The FUNDAMENTALS of
our BUSINESS
EVERYTHING UNDER
the SAME ROOF
SELF-SERVICE SALES
CHOICE
MASS SALES
PROFITABLE SERVICES
INTERNAL PROMOTION
Our VISION: Do !t Smart
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Product Do !t Smart
100% AVAILABLE PRODUCTS OWN BRANDS & QUALITY
INNOVATION
SIMPLE & EASY TO USE PRODUCTS
ECO PRODUCTS
Customer Do !t Smart
SIMPLIFY PROJECTS
FROM IDEA ? TO STORE ? TO HOME
VIDEOS
MOBILE APP
GUIDE & PACKS
3D PROJECT SIMULATION
COMMUNITY
SMART
MERCHANDISING
Co-worker Do !t Smart
DEVELOP AUTONOMY AND THE COMMITMENT OF THE TEAMS
SIMPLIFY THE EVERYDAY LIFE OF OUR CO-WORKERS
ACTORS OF
PROFESSIONAL
DEVELOPEMENT
CREATORS OF VALUE
TOOLS TO SIMPLIFY
A NETWORK
COMPANY
ACTORS OF
IMPROVEMENT OF
MANAGEMENT
PRACTICES
The Smart Store
THE DO !T SMART EXPRESSION
I want it,
I’m taking it!
I’ve learned
how to drill a
wall and I’ve
never touched
a drill in my life!
I can do it,
I’m going to
do it!
I can find a
good product
in the blink of
an eye!
I can plan my
kitchen online in
the morning,
and pick it up
in-store in the
afternoon!
Two major proposals: simplicity
& autonomy
100% AVAILABLE PRODUCTS
In self-service or by
interactive kiosk
Drive the Do !t Smart towards
the customer shopping experience
In
store
Take away
area
AUTONOMY &
AVAILABILITY
Drive the Do !t Smart towards
the customer shopping experience
MORE WAYS TO
BUILD YOUR
PROJECT
FROM A TO Z
In
store
At home or in
store
Drive the Do !t Smart towards
the customer shopping experience
5 AREAS TO LEARN
DIY BASICS IN 5
MINUTES
In
store
MORE WAYS
TO LEARN
At home
WORKSHOPS
Drive the Do !t Smart towards
the customer shopping experience
MORE WAYS
TO CHOOSE
Points of interest Castorama
Lormont
Tinting
Machine
Teaching
Area
3D
Projects
Made to
Measure
Workshops and
Troc?heures
area
Interactive
Kiosk
Take Away
Area
Orientation
Interactive
Kiosk
February 3rd, 2012
46
Brico Dépôt
February 3rd, 2012
47
Agenda
Core model & value proposition
Transformation program
February 3rd, 2012
48
Agenda
Core model & value proposition
Transformation program
February 3rd, 2012
49
Brico Dépôt France
102 stores
7 800 employees
Sales : € 2670M (incl. tax)
February 3rd, 2012
50
Concept
70 FTE
5 000 m² sales area
10 000 references
€30 M sales, incl. taxes
Typical store characteristics:
February 3rd, 2012
51
Concept
"Depot" Concept : volume, density, availability, peripheral locations, low service
Volume / High racks
"Full" sensation
Saturated facing
Product availability
In-store storage and reloads
Unperfect alignments
"Busy", lively sensation
Sales people
Efficient service and advice
"Pro" sensation
Convenient Lay-out
Readable ranges
Large price boards
Product Reach
Touchable
No Packaging
Self-service
Premises
Out-of-town locations
Basic building and parking
Service
No delivery
February 3rd, 2012
52
Everything under one roof
Self-service to maximize customer productivity
Core market product offering, with volume
Best price vs expected value
Short, flexible structures
All activities converging to maximize store efficiency
Only necessary activities undertaken
February 3rd, 2012
53
February 3rd, 2012
54
Highly efficient business model
February 3rd, 2012
55
Mass culture, expertise which develops,
21
st
century markets
1
Expert customers, essential products,
the store, low cost underpinning prices
2
Those who perceive DIY positively,
and have developed skills
3
Select essential products in volume that are
the constituents of the 21
st
century home
4
Operational efficiency, economic
returns, community feeling
5
Structured offering (quality / usage / price),
store organization
6
Positive relation to project, value of work,
back to basics
7
1
INSIGHTS
2
HERITAGE
3
TARGET
4
ROLE
5
BENEFITS
6
TRUST
FACTORS
7
VALUES
Value proposition
February 3rd, 2012
56
Agenda
Core model & value proposition
Transformation program
February 3rd, 2012
57
February 3rd, 2012
58
February 3rd, 2012
59
Pricing strategy & tools
Renewed communication
Direct Sourcing
Cross marketing
Customers survey
Products strategy
Range review
Self-service
Visual identity
Merchandising
Store revitalisations
Shelf-ready
EDI
ELAN (lean management)
DNA / Culture
In-company communication
Incentive scheme
Leadership training
February 3rd, 2012
60
2008 2009 2010 2011
3%
6%
0
-6%
-3%
LFL Growth (%)
-3.6
-5.4
-0.5
+4
2011 Overview
Sales = € 2790M (incl. tax)
LFL Growth = 4% (Q3)
Employees = 7 789 (7 120 FTE)
Stores = 102
Position in France = 3
e
Market share = 13%
all surfaces
+3.5% -1.2% +0.1% +5.7%
Brico Dépôt in 2011
Thank you
doc_627194945.pdf
Strong brand awareness : legitimacy
(as a pioneer, a leader), seriousness
• Leader in overall “Brand Capital” Remember „Chez Casto, y a tout ce qui faut‟
(„At Casto‟s, there‟s everything you need‟)Leader in Hardware
• Leader in Gardening
• Competitive in Building
• Range of choice
• Quality Fast development
• Choice to develop internationally
February 2012
2
Agenda
? General presentation of Kingfisher France
? Castorama
? Brico Dépot
3
Key Figures
Market shares in France
Kingfisher France
ADEO France
(*)
Mr Bricolage
Bricomarché
Bricorama
Source : UNIBAL – 2010
(*) Excluding Weldom
4
Key Figures
France Region (excluding Spain)
23,4%
2007
Market share (1)
Sales (£bn)
Retail Operating Profit (£mil)
3,2
23,8%
2008
3,9
237 283
2009
24,3%
4,2
322
CASTORAMA (£bn) 1,7 2,1 2,2
BRICO DEPOT (£bn) 1,5 1,8 2,0
All figures are reported data
(1)Source UNIBAL: Market share based on calendar year
(2) excluding Weldom
ADEO 21,2
2
Mr Bricolage
Bricomarché
Bricorama
7,2%
7,9%
2,5%
20,5%
2
7,3%
7,9%
2,1%
Store number 98 99 101
Store number 89 98 100
Store number 186 197 201
2010
4,2
348
2,3
1,9
101
102
203
24,6%
22,9%
2
8,7%
7,7%
2,6%
Sales
+9,2%/y
(CAGR 2006/11)
ROP
+14%/y
(CAGR 2006/11)
5
Market context
Kingfisher outperforms a market that is recovering...
12 rolling months - comparable store
3,1%
1,9%
-6,0%
-5,0%
-4,0%
-3,0%
-2,0%
-1,0%
0,0%
1,0%
2,0%
3,0%
4,0%
5,0%
nov-08 nov-09 nov-10 nov-11
Kingfisher France Market (Banque de France)
6
cumulative 12 months
160 000
180 000
200 000
220 000
240 000
260 000
nov-08 nov-09 nov-10 nov-11
Authorized Started
Market Context
… and where demand on real estate market is supportive
Started
Authorized
Market recovery of existing homes
Nb of transactions existing homes
(cumulative 12 months, in OOO)
Number of new Individual Homes
construction is increasing
Sources : Ministère du logement, Banque de France
7
The French story
Castorama Castorama + store transferred to BD
0
10
20
30
40
50
60
70
80
90
100
110
120
130
7
15 Briker
1992
1969 1971
1977
20 stores
32 transferred to
brico dépot
Store
number
Brico Dépôt
Poland
Italia
1
9
6
9
1
9
7
1
1
9
7
3
1
9
7
5
1
9
7
7
1
9
7
9
1
9
8
1
1
9
8
3
1
9
8
5
1
9
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103 102
8
The French story
Castorama : a position which no longer fits the market in 2003...
Historic Strengths 2003 limits
Brand image
• Strong brand awareness : legitimacy
(as a pioneer, a leader), seriousness
• Leader in overall “Brand Capital”
• Masculine & technical identity
• In a market undergoing „feminisation? and
tending towards decorative & showroom
Communication
• Remember „Chez Casto, y a tout ce qui faut?
(„At Casto?s, there?s everything you need?)
• Has not followed the evolution of the
clientele, who has moved on from just „home
improvement repairs? to „home
improvement projects?
Range /
Products /Prices
• Leader in Hardware
• Leader in Gardening
• Competitive in Building
• Range of choice
• Quality
• Weaker Decorative
• Weaker Showroom
• Lack of clarity in the structure of the ranges
• Bad price positioning
Stores/
Merchandising
• Fast development
• Choice to develop internationally
• Heterogeneous store portfolio
• Lack of investment and maintenance
9
The French story
...a need to launch an ambitious plan to ensure achievement of results
2003 2004 2005 2006 2007
Efficiency
Supply Chain
Price
Offer
Store
Investment
CPR
Redefine principles
and organisation
Return to basics
through strong actions
Improve /
accelerate
10
The French story
Brico Dépot: A decade of success with double-digit growth…
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
3 000
2 500
2 000
1 500
1 000
500
10
20
30
40
50
60
70
80
90
100
2002-2007 CAGR
19.3 % Sales
12.2 % store numbers
# stores Turnover € m (tax incl.)
#stores Turnover
11
Market
Appropriate
business
model
Innovative
positioning
Group
support
The French story
… offering the opportunity to develop the model quickly...
12
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
10
20
30
40
50
60
70
80
90
100
12.1%
17.7%
7.3%
2.8%
1.4%
-3.6%
-5.4%
# stores
2008-2009 CAGR
1.1 % Sales
6.7 % store numbers
LFL growth #stores Turnover
3 000
2 500
2 000
1 500
1 000
500
Turnover € m (tax incl.)
The French story
…but growth levelled off since 2007...
13
Market
Inappropriate
business
model
Challenged
position
Critical
size
The French story
…the model faced to its own limits...
14
The French story
…encouraging us to develop a 2 steps strategy...
15
Two companies Two concepts Two business models
One Strategy
16
The French story
A customer approach for each Opco...
17
The house to build The house to live in
Our conviction
… in a home market that can be split into two areas …
18
Maintenance
Lasting
Strong
Pleasantness
Fleeting
Nice
The deco house The heritage house
The house to build The house to live in
Our conviction
… with different customer expectations
19
Technical offer
Short areas
Durability / Reliability
Deco offer
Showroom areas
Change / Disposable
The house to build The house to live in
Our conviction
… and different retail answers
20
T
h
e
h
o
u
s
e
t
o
b
u
i
l
d
The house to live in
Deco showroom offer
Showroom areas
Change / Disposable
Technical offer
Short areas
Durability / Reliability
21
T
h
e
h
o
u
s
e
t
o
b
u
i
l
d
The house to live in
Deco showroom offer
Showroom areas
Change / Disposable
Technical offer
Short areas
Durability / Reliability
22
Two differentiated businesses in terms of positioning
? Heavy DIYs and professionals
? 20/80 for building and renovation
? Private customers / female market
? Everything for the fitting out of the
house and the garden
23
? 10-12 000 product references
? Low prices, everyday
? Products available in great quantities
? >50 000 product references
? 1st price / good / better / best
? Selection and collections
? The 4 house-styles
Two differentiated businesses in terms of offer
24
Kingfisher France
Working together
Create links
Create sources of
short-term
improvement
Build a
performing and
long-term
development
• Opco Board meetings
• KF France Board
• Operational cross-opco
steering committees
• Purchasing synergies
• GNFR synergies
• Sharing best practices
• Empowerment through profit sharing
• Store development strategy
25
Kingfisher France
Delivering value together
134
186
215
230
206
237
283
322
348
100
150
200
250
300
350
400
2003 2004 2005 2006 2007 2008 2009 2010 2011
6,9%
8,3%
7,0%
€mil
% Sales
169 stores
205 stores
179 stores
26
Two companies Two concepts Two business models
One Strategy
CASTORAMA
FRANCE
Our strategic
choices
HOW TO SPREAD THE DIY MARKET
TO THE LARGEST NUMBER?
HOW TO IMPROVE OUR ECONOMIC MODEL?
2003 Today
REVAMP
PRODUCTS & SERVICES
INNOVATION
EMPLOYEE COMMITMENT
RANGE
REVIEWS
Henin Beaumont Villabe Cormeilles La Défense Brest Toulon Antibes
Learning from our EXPERIENCE
…Movement creates growth
Lormont
PERMANENT
REVAMP
PRODUCTS
& SERVICES
INNOVATION
EMPLOYEE
COMMITMENT
Learning from our EXPERIENCE
…Movement creates growth
4 GROWTH DRIVERS
Additional turnover
shares
PRODUCTS &
SERVICES AND
INNOVATION
REVAMP
EMPLOYEE
COMMITMENT
0%
100%
Our BELIEFS
The obsolescence of too much choice
The power of self-service
Services and myths
Greater choice is obsolete if it is not comprehensible
and accessible for the customer
Self-service is a source of growth and productivity
Services constitute an economic model that is generally
dilutive in our business line
…Strengthen our fundamentals
Develop purchase power
Invest in our prices, so that DIY remains a way
to save money easily for our customers
Learning from the MARKET
A slowing market BUT…
87%
WOULD LIKE HELP
WITH THEIR DIY PROJECTS
Lack of training is the main factor
preventing more DIY activity
60%
WAIT FOR
SIMPLER PRODUCTS
TO BUILD OR USE
Castorama IFOP survey of 1,007 French people from 1 to 7 April 2011
…that still has great potential
DIY FRENCH MARKET TREND
Source: Unibal – April 2011
DIY FRENCH MARKET TREND
Source: Unibal – April 2011
90
100
110
120
130
140
150
2002 2003 2004 2005 2006 2007 2008 2009 2010
Total DIY Gardening
In constant €. Base 100 in 2002
Learning from our ENVIRONMENT
What role will the store
play in the future?
…A multi-channel society
? Sharing know-how
? Product simplification
? Use of social networking contacts
? Strengthening the in-store experience
(immediacy/sensory experience)
The VIRTUAL
The REAL
Stores:
53.7M
contacts in
2010
Forums:
+ than 3,5M
unique visitors
since 1 June 2011
Website:
+ than 65M visits
in 2011
Facebook:
+ than 35,000 fans
Castorama application:
475,000 downloads
50,000 unique users
per week since 2010
Castorama videos:
+ than 1.7M views since 2010
Search engines:
+ than10M product pages consulted
Troc’Heures Community:
3,360 registrations
1,150 barters
BELIEFS
EXPERIENCE
ENVIRONMENT
STRATEGIC
DIRECTION
Our VALUES
CREATIVITY
SIMPLICITY
AUTONOMY
COMMITMENT
Our STRATEGIC PLAN
INCREASE the SIMPLICITY
and the AUTONOMY
INNOVATE
SHARE the KNOW-HOW
STIMULATE GROWTH
SPEAK to EACH OTHER
The FUNDAMENTALS of
our BUSINESS
EVERYTHING UNDER
the SAME ROOF
SELF-SERVICE SALES
CHOICE
MASS SALES
PROFITABLE SERVICES
INTERNAL PROMOTION
Our VALUES
CREATIVITY
SIMPLICITY
AUTONOMY
COMMITMENT
Our STRATEGIC PLAN
INCREASE the SIMPLICITY
and the AUTONOMY
INNOVATE
SHARE the KNOW-HOW
STIMULATE GROWTH
SPEAK to EACH OTHER
The FUNDAMENTALS of
our BUSINESS
EVERYTHING UNDER
the SAME ROOF
SELF-SERVICE SALES
CHOICE
MASS SALES
PROFITABLE SERVICES
INTERNAL PROMOTION
Our VISION: Do !t Smart
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Product Do !t Smart
100% AVAILABLE PRODUCTS OWN BRANDS & QUALITY
INNOVATION
SIMPLE & EASY TO USE PRODUCTS
ECO PRODUCTS
Customer Do !t Smart
SIMPLIFY PROJECTS
FROM IDEA ? TO STORE ? TO HOME
VIDEOS
MOBILE APP
GUIDE & PACKS
3D PROJECT SIMULATION
COMMUNITY
SMART
MERCHANDISING
Co-worker Do !t Smart
DEVELOP AUTONOMY AND THE COMMITMENT OF THE TEAMS
SIMPLIFY THE EVERYDAY LIFE OF OUR CO-WORKERS
ACTORS OF
PROFESSIONAL
DEVELOPEMENT
CREATORS OF VALUE
TOOLS TO SIMPLIFY
A NETWORK
COMPANY
ACTORS OF
IMPROVEMENT OF
MANAGEMENT
PRACTICES
The Smart Store
THE DO !T SMART EXPRESSION
I want it,
I’m taking it!
I’ve learned
how to drill a
wall and I’ve
never touched
a drill in my life!
I can do it,
I’m going to
do it!
I can find a
good product
in the blink of
an eye!
I can plan my
kitchen online in
the morning,
and pick it up
in-store in the
afternoon!
Two major proposals: simplicity
& autonomy
100% AVAILABLE PRODUCTS
In self-service or by
interactive kiosk
Drive the Do !t Smart towards
the customer shopping experience
In
store
Take away
area
AUTONOMY &
AVAILABILITY
Drive the Do !t Smart towards
the customer shopping experience
MORE WAYS TO
BUILD YOUR
PROJECT
FROM A TO Z
In
store
At home or in
store
Drive the Do !t Smart towards
the customer shopping experience
5 AREAS TO LEARN
DIY BASICS IN 5
MINUTES
In
store
MORE WAYS
TO LEARN
At home
WORKSHOPS
Drive the Do !t Smart towards
the customer shopping experience
MORE WAYS
TO CHOOSE
Points of interest Castorama
Lormont
Tinting
Machine
Teaching
Area
3D
Projects
Made to
Measure
Workshops and
Troc?heures
area
Interactive
Kiosk
Take Away
Area
Orientation
Interactive
Kiosk
February 3rd, 2012
46
Brico Dépôt
February 3rd, 2012
47
Agenda
Core model & value proposition
Transformation program
February 3rd, 2012
48
Agenda
Core model & value proposition
Transformation program
February 3rd, 2012
49
Brico Dépôt France
102 stores
7 800 employees
Sales : € 2670M (incl. tax)
February 3rd, 2012
50
Concept
70 FTE
5 000 m² sales area
10 000 references
€30 M sales, incl. taxes
Typical store characteristics:
February 3rd, 2012
51
Concept
"Depot" Concept : volume, density, availability, peripheral locations, low service
Volume / High racks
"Full" sensation
Saturated facing
Product availability
In-store storage and reloads
Unperfect alignments
"Busy", lively sensation
Sales people
Efficient service and advice
"Pro" sensation
Convenient Lay-out
Readable ranges
Large price boards
Product Reach
Touchable
No Packaging
Self-service
Premises
Out-of-town locations
Basic building and parking
Service
No delivery
February 3rd, 2012
52
Everything under one roof
Self-service to maximize customer productivity
Core market product offering, with volume
Best price vs expected value
Short, flexible structures
All activities converging to maximize store efficiency
Only necessary activities undertaken
February 3rd, 2012
53
February 3rd, 2012
54
Highly efficient business model
February 3rd, 2012
55
Mass culture, expertise which develops,
21
st
century markets
1
Expert customers, essential products,
the store, low cost underpinning prices
2
Those who perceive DIY positively,
and have developed skills
3
Select essential products in volume that are
the constituents of the 21
st
century home
4
Operational efficiency, economic
returns, community feeling
5
Structured offering (quality / usage / price),
store organization
6
Positive relation to project, value of work,
back to basics
7
1
INSIGHTS
2
HERITAGE
3
TARGET
4
ROLE
5
BENEFITS
6
TRUST
FACTORS
7
VALUES
Value proposition
February 3rd, 2012
56
Agenda
Core model & value proposition
Transformation program
February 3rd, 2012
57
February 3rd, 2012
58
February 3rd, 2012
59
Pricing strategy & tools
Renewed communication
Direct Sourcing
Cross marketing
Customers survey
Products strategy
Range review
Self-service
Visual identity
Merchandising
Store revitalisations
Shelf-ready
EDI
ELAN (lean management)
DNA / Culture
In-company communication
Incentive scheme
Leadership training
February 3rd, 2012
60
2008 2009 2010 2011
3%
6%
0
-6%
-3%
LFL Growth (%)
-3.6
-5.4
-0.5
+4
2011 Overview
Sales = € 2790M (incl. tax)
LFL Growth = 4% (Q3)
Employees = 7 789 (7 120 FTE)
Stores = 102
Position in France = 3
e
Market share = 13%
all surfaces
+3.5% -1.2% +0.1% +5.7%
Brico Dépôt in 2011
Thank you
doc_627194945.pdf