Leroy Merlin SA
TypeSubsidiary
IndustryRetail
Founded1923 (1923)
FounderAdolphe Leroy & Rose Merlin
Headquarters
Lille, France
Area served
France, Cyprus, Greece, Italy, Poland, Portugal, Romania, Russia, Spain, Ukraine, China, Brazil, South Africa, Egypt
ProductsDo it yourself
Home improvement
Garden Supplies
OwnerGroupe Mulliez (84 %)
Employees (16 %)
Number of employees
164,764 (2021) Edit this on Wikidata
ParentGroupe Adeo
WebsiteLeroy Merlin

Leroy Merlin (French: [ləʁwa mɛʁlɛ̃]) is a French-headquartered home improvement and gardening retailer serving several countries in Europe, Asia, South America, and Africa. Leroy Merlin is owned by the Mulliez family, which also owns Auchan.

History

Leroy Merlin in Kalisz, Poland
Leroy Merlin around the world.

In 1923, Adolphe Leroy and Rose Merlin, associates in private and business life, opened a business of American surplus. Strengthened by this first success, they decided to sell DIY products and supplies at moderate prices. In 1960, the firm was named Leroy Merlin. It became a precursor, as it was the first company to offer free delivery services.[1]

Generally established on the outskirts of major towns and cities, Leroy Merlin stores are large centres (9000 m2 on average) providing self-service and sales assisted services. Its business is centred on six main sectors: DIY, building, gardening, sanitary equipment, renewable energy, and interior decoration.[2]

Controversies

Following the 2022 Russian invasion of Ukraine, many international, particularly Western, companies pulled out of Russia. Leroy Merlin, however, on 11 March announced that it has no plans to reduce its operations in Russia, where it operates 143 stores.[3] On 17 March, they cut off the Ukrainian office from corporate communications and stated that they would increase supplies to the Russian Federation.[4]

Leroy Merlin has a strong presence in Russia and generates 18% of its turnover there.[5] In 2020, the company paid $335 million in taxes as a result of their operations in Russia. In 2021, the company's revenue amounted to 457 billion rubles.[6] The company has been criticized for making indirect contributions to the Russian military effort.[7]

On the night of 20-21 March 2022, a shopping centre in Kyiv housing a Leroy Merlin shop was bombed. Shop employees called on the company to leave Russia,[8] as did the Ukrainian MP Oleksiy Honcharenko. The latter, elected in the constituency of Odesa and member of the Ukrainian delegation to the parliamentary assembly of the Council of Europe, broadcast a video.[9] The video was shot in front of the devastated store.

In a statement to AFP, Adeo, Leroy Merlin's holding company, said a closure would be considered a "premeditated bankruptcy"[10] and says that it has an "employer's responsibility towards (its) 45,000 employees and their families who have been contributing to the building of Leroy Merlin Russia for the past 18 years". However, there are reports of insults and threats from customers following the company's continued operations in Russia.[11]

In March 2023, Adeo announced its intention to transfer the Russian Leroy Merlin network to local management. According to the company, this process has already begun.[12] On 24 July 2023, the company's Russian branch in Moscow was struck by a drone attack.

Earlier in July, it was named "an international sponsor of war" by the Ukrainian government after Russia obliged all large companies operating in the country "to contribute directly to its war effort". It was placed on the list alongside Unilever and Procter & Gamble.[13]

See also

References

  1. ↑ "LEROY MERLIN | LEROY MERLIN, nearly 400 home improvement stores in 12 countries". Archived from the original on 2009-02-26. Retrieved 2008-11-06.
  2. ↑ "LEROY MERLIN | LEROY MERLIN, nearly 400 home improvement stores in 12 countries". Archived from the original on 2009-03-23. Retrieved 2008-11-06.
  3. ↑ Pladson, Kristie. "Which companies have pulled out of Russia over the Ukraine invasion? | DW | 10.03.2022". DW.COM. Retrieved 2022-03-11.
  4. ↑ "Leroy Merlin blocks Ukraine office from corporate communications, paralyzing aid". english.nv.ua. Retrieved 2022-03-17.
  5. ↑ Estelle Imbert (23 March 2022). "War-in-Ukraine: Leroy Merlin employees in Ukraine are mobilising to get the sign withdrawn in Russia". Forbes. Archived from the original on 2022-05-14. Retrieved 2022-03-23.
  6. ↑ "ООО "Леруа Мерлен Восток"". www.rusprofile.ru (in Russian). Retrieved 2023-12-26.
  7. ↑ "An explosion in Kyiv killed an employee of Leroy Merlin, which continues to operate in Russia". Ukrainska Pravda. Retrieved 2022-03-21.
  8. ↑ "Leroy Merlin Ukraine employees call on the company to leave Russia". BFM BUSINESS. Retrieved 2022-03-21..
  9. ↑ "VIDEO. War in Ukraine: Leroy Merlin bombed in Kyiv, employees ask the company to leave Russia". In a recent interview with the BBC, the author of the article, "Leroy Merlin, a brand new company, is in the process of being bombed by the Ukrainian government." {{cite web}}: Missing or empty |url= (help)
  10. ↑ "Despite Zelensky's appeal, Leroy Merlin remains in Russia and explains why". Le HuffPost. 23 March 2022. Retrieved 2022-03-24.
  11. ↑ "Leroy Merlin: employees threatened and insulted by customers because of the group's continued operations in Russia". Retrieved 2022-03-30.
  12. ↑ "Владелец Leroy Merlin передаст российские активы местному менеджменту". Kommersant (in Russian). 24 March 2023.
  13. ↑ "Unilever to comply with Russian conscription law if staff called up". The Guardian.
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