The DIY giant, Leroy Merlin, has been working the last few years in improving its digital service and reinforcing the technological development of the company. Thus, with the arrival of the restrictions in physical stores of 2020, they managed to enable a telephone assistance and advice service in just three days. A prompt response that allowed him to keep the company afloat during the pandemic year, generating 69.4 million euros in orders in this way.
The new channels, such as the telephone, sales through its eCommerce or Whatsapp have achieved a strong boost during 2020, generating a turnover of 160.1 million euros, almost triple what was obtained in 2019. Specifically, the Online sales reached 91 million euros (+51.9%).
As the company explained in the presentation of its annual results, 2020 was a pretty good year in terms of numbers for the company, achieving an EBIT of 127.2 million euros, 50.5% more than in 2019. For its part, the net profit of the brand for the same year was 100.2 million, 58% more than in 2019. In this way, the French giant saw excellent results thanks to the new sales channels, deciding to leave them permanently. permanent among their business methods.
Video calls come to Leroy Merlin
As part of the growth in the digital ecosystem that Leroy Merlin has had, the French company has recently announced the incorporation of a service channel for video calls. a channel that The Goose has also recently incorporated into its stores offering a unique experience for shoppers.
For Leroy Merlin, the focus of this channel will be to establish a more solid dialogue with consumers in addition to reinforcing sales. In this way, customers will be able to show their projects to the brand’s employees and receive advice regarding offers of products and materials that are more suitable for carrying out their works and DIY tasks, generating a more organic shopping experience. At the moment it is a project under development, without an estimated date for its incorporation into the company’s usual channels and which will start at its Rivas center.
Leroy Merlin prepares for a 2021 of strong growth
Together with this innovative approach to its sales channels, the French company plans a 2021 of growth and expansion, with a sales target of 2,850 million euros. Also, according to the statements offered by Inigo Perez, Financial Director of the brand in Spain, Leroy will resume his investment plan this year. It had stopped last year, which helped significantly in reducing expenses and increasing profits that we talked about at the beginning.
Leroy Merlin will make an investment of 27.5 million for technological development and its supply chainwhich includes its new video call sales channel, as well as a boost to your online store and telephone and digital sales channels. The company will try to shorten delivery times with immediate collection at the store with Click&Collect and directing the points of sale to function as proximity logistics platforms. To do this, the online store will guide the search results based on the availability of products in the store closest to the customer.
The company also intends to make an investment of 67 million euros, in order to develop its physical presence. Thus, three new stores are being inaugurated, one recently opened in Jaén and two more in León and Tenerife, together with the transformation of 17 AKI stores. process started in 2018 as part of a strategy to improve the customer experience. On the other hand, the company’s workforce will also be expanded, with an estimated 5,000 new hires for this new year.
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