Leroy Merlin is undoubtedly one of the benchmarks in the DIY and hardware products sector, however The company wants to further expand its offering and has started to allow it to diversify its business. The most striking of them is a new marketplace, but not for products, but one designed to connect technical professionals and installers with consumers: Hogami.
Hogami, a new project for a new stage in Leroy Merlin
During 2019 Leroy Merlin invoiced 2,653 million euros after the union with AKI, which represented an increase of 24.6% compared to the previous year. Its EBITDA reached 84.5 million euros, and its online store has not been far behind, since it obtained record figures with a turnover of 59.90 million euros, that is, 26.8% more than in 2018.
One of the key points in the performance of Leroy Merlin has been investments: during 2019 it reached 160 million euros, of which 69.5 million were allocated to the transformation and opening of new points of sale, while others 51.5 million euros were for its digital transformation and supply chain.
One of the great bets of Leroy Merlin in 2020 it will be strategic diversification. In this sense, , director of services and large accounts of Leroy Merlin Spain explained that the company “is immersed in the deployment of 3 key projects: supply of merchandise, refurbishment projects and reforms for non-private clients, commercialization of renewable energies and our new marketplace, Hogami”.
Hogami from this February to clients from Madrid and the Canary Islands. Its main objective is putting clients in contact with professionals selected and endorsed by Leroy Merlinfeatured in jobs or home services.
In the Hogami marketplace you can find professionals who perform, for example, cleaning, painting, moving, or various installation services, among others, those who subscribe to their services will also gain visibility, while consumers can trust these professionals.
The platform will be in charge of charging for the work carried out for the clients, and then Hogami will pay them for this service minus a 10% commission. At the end of 2020, Leroy Merlin expects to have 800 professionals serving 25,000 active customers on its marketplace.
Large Accounts and advice on renewable energy installations
But Hogami is not Leroy Merlin’s only bet this 2020, as it will also expand its strategy to offer merchandise supply and adaptation, rehabilitation and reform projects to non-individual clients.
with big accounts, Leroy Merlin will offer these services to companies, such as offices, shopping centers and various companies. This project, which began with the reform of hotels, will now be expanded and its objective this 2020 will be to bill 20 million euros.
In terms of renewable energies for the home, during 2019 the company invoiced 34.4 million euros with the expansion to 6,859 references and the incorporation of turnkey solutions to its catalogue, with which it has managed to democratize access to this type of sustainable solutions. From solar panels to biomass heating, Leroy Merlin will advise and carry out projects for the installation of renewable energy solutions for individuals.
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