“There has been a marked contrast in recent strategy between the two leaders in European DIY. On the one hand there is an approach typified by ADEO (whose main business is Leroy Merlin) with a very customer-focussed, service-led strategy. On the other we have seen a cost-led strategy at Kingfisher with the aim of bringing similar sorts of chains together in terms of systems and product offer. To some extent Kingfisher’s approach is dictated by the problems of the UK market, and it would be wrong to suggest that ADEO and Kingfisher are not each adopting the approach we say is typified by the other to some extent, as ADEO’s move to rationalise its portfolio of brands shows. But over the next few years the DIY sector will see these contrasting strategies play out and the performance of these two leading players will be a test bed for their respective approaches.”

– Richard Perks, Director of Retail Research