Interview with Karim Houchi, published on July 8, 2013, by Olivia Leroux in franhise-magazine.com
"Within 5 years, thanks to our new concept, we hope to reach 500 WELDOM stores in France".
How large is the Weldom network within the Adeo Group today? What is Weldom's position in the French DIY market?
Part of the Adeo Group, the world's 3rd largest DIY retailer and number 1 in Europe [over 800 stores in 13 countries, under the Leroy Merlin, Bricoman, Bricocenter, Aki... banners, editor's note], Weldom generated sales of almost 900 million euros in 2012, with 219 stores and 500,000 m² of retail space. While Leroy Merlin targets large conurbations, Weldom is mainly present in small and medium-sized towns, with outlets ranging from 1,000 to 3,000 m², generating between €1.5 and €6 million in sales, depending on the store. Another difference between Weldom and Leroy Merlin is that the majority of the company's development is carried out by independents: only 22 of the network's 219 units are owned by the group under its own name, while the others are all franchises. Finally, Weldom is only present in France and not internationally, with a local, mid-range positioning. Let me add that, while the company's website is only a showcase for the time being, a merchant version is in the pipeline, based on a model approved and supported by all its members.
Weldom had nearly 250 stores in France in 2011, but today there are 219. How do you explain this slight decline in the number of Weldom stores? We redefined our retail concept some time ago, and a number of stores didn't fit in with the new business model. Hence the decline in the Weldom store base over the past two years. The new Weldom concept has been designed to meet consumer expectations, as well as the requirements of our business leaders. It is based on a redesigned visual identity, a streamlined and better-presented product range, reduced stock levels and an in-store itinerary offering our customers greater autonomy. The idea is also to move towards smaller, more densely-packed stores, offering a better return per square metre. Two pilots were inaugurated on this model in April 2012, and a further ten or so conversions are planned between now and autumn. The aim is to have our entire fleet converted within 5 years. This standardization will undoubtedly enable us to gain in notoriety and communication power.
Read more: http: //www.franchise-magazine.com/actualite/entretiens/karim-houchi-responsable-du-developpement-442.html
