Castorama Poland presentation Warsaw PDF

Transcription

Castorama Poland
Press Visit
30 October 2008
Castorama Polska Sp. z o.o.
Press Visit 30/10/2008
1
Introduction
• Market leader in Poland
• “Castorama” and “Brico Depot” brands
• 44 Casto and 4 Brico stores
• Over 9,000 employees
• Stable, winning strategy
• Market with growing consumer uncertainty
2
Agenda
• Poland – market outlook
• Polish home improvement market
• Castorama / Brico today and in the future
• Store visits
3
Poland - market outlook
Macroeconomics
• Market potential
•
•
•
5.5% GDP growth in 2008 compared to 1.2% EU average
Region’s leader in GDP per capita growth
Increasing wages, low interest rates driving investment and customer spend
• People
•
•
Market of 38m people
Young society with more than 50% people under 35 years
• Important consumer market
•
Over 13% retail sales growth in H1 2008(e);
• Other
•
•
Good elasticity of labour regulations (judged 2nd in Europe after UK)*
Low CIT of 19% (judged 3rd)*
*) Source: EY European Attractiveness Survey 2007, Government statistics
4
Macro assumptions * - healthy economy in global crisis environment
•
•
•
GDP growth in 2008 Q3 of 4.3% with generally expected slowdown from 2009 4.8%;
Unemployment expected to remain durably under 10%;
CPI up 4.2% driven by oil, food prices and general consumption increase, balanced by
strong zloty;
•
•
Wages up 11.7% expected to grow at slower pace;
Construction market growth of 18.2% from a high base of 2007 (+30.2%), with uncertain
outlook for 2009.
* Government statistics for H1 2008 unless stated.
5
Credit crunch – implications
•
Consumer confidence index
Polish economy less driven by credit –
mortgages to GDP only 36% in 2008;
•
Polish banks – record profits in H1 2008 –
no toxic assets, under negative influence
from foreign mother banks and frozen
Sep Jun
2003 2004
interbank;
•
Apr
2005
Feb
Dec Oct
Sep
2006 2007 2007 2008
Less exposure to foreign funding hence
Customer level of anxiety Oct 2008
different situation to region e.g. Hungary;
6%
3%
12 %
31 %
•
•
•
41 %
Customer confidence down;
Increased credit restrictions;
Zloty suffering due to lack of confidence;
close to panic
high anxiety
moderate tranquillity
complete tranquillity
moderate anxiety
Source: Gazeta Wyborcza, Ipsos October 2008 survey
6
DIY market implications
Opportunities:
•
•
•
Deteriorating financial position of weaker DIY’ers
Better rental market with renovation needs – potential opportunity;
Improved conditions for Poles working abroad – weaker Zloty and cheaper property;
Threats:
•
•
•
Macro situation might lead to a market downturn in 2 to 3 years;
Mortgage and consumer credit situation may be volatile due to exchange rate fluctuations;
Tightened credit policy could drive property prices down with potential buyers postponing
purchase of new flats.
7
Poland – development of Castorama
800
100
87.5
90
700
703.0
600
52.5
400
46.4
41.4
417.0
22.5
200
507.8
60
Total Sales GBP m
50
EBIT GBP m
40
30.5
300
100
70
58.4
500
80
321.9
285.6
30
236.0
20
179.5
10
0
0
2001/02
2002/03
£m
Total Sales GBP m
EBIT GBP m
EBIT/Total Sales [%]
Store openings
Castorama
Store openings Brico
Total number of stores
2003/04
2004/05
2005/06
2006/07
2007/08
2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08
179.5
236
285.6
321.9
417
507.8
703.0
22.5
30.5
41.4
46.4
52.5
58.4
87.5
12.5% 12.9% 14.5% 14.4% 12.6% 11.5% 12.4%
4
4
3
6
5
4
6
-
12
16
19
25
30
1
35
1
42
8
DIY market - competition
•
•
•
•
Number of
stores
2004
2005
2006
2007
2008
25
29
34
38
44
-
-
1
1
4
Possible consolidations due to weaker
14
16
21
23
26
market
23
25
28
30
30
Alignment of strategies to follow the leader
16
17
17
20
21
35
32
32
32
30
-
-
-
1
2
Castorama / Brico / Competitors
Fierce competition
Development programs – smaller formats
Sales 2006 in PLN m
Castorama Polska
Praktiker
2,918
602
Financials
•
•
Lack of reliable data on market size
Praktiker – the only competitor revealing
data on sales
9
DIY market - client
Following the survey as per the end of June 2008 declared Castorama clients represent 10.64% of adult
population of Poles over 15 years of age which constitutes 3.2m people.
*) Source: TGI I 2001 – VI 2008
10
Customers loyalty
•
•
Leroy Merlin has the smallest number of loyal customers, as opposed to Castorama
25% of Castorama clients purchase also in Leroy Merlin stores, 26% in OBI stores and
24% in Praktiker stores
•
As many as 48% of Leroy Merlin clients purchase in Castorama stores, 46% of Praktiker
clients and 42% of OBI clients
*) Source: TGI I 2007 – VI 2008
11
Where do Poles shop in DIY?
65.4% responding Poles shop in Castorama. However still over 33% are traditional market clients – not
included in this research.
Source: AMS survey „Dystrybucja 2008.
12
Castorama - strategy
Simple, efficient, and friendly in warehouse format
Large range of products for construction, home
improvement and garden for individual consumers
and trade
EDLP
Large quantities of stock available - high density of
products
Clear and simple merchandising to make the
customers experience easier
Pricing policy: ‘Every day low prices’ without false
promises, promotions or rebates
Professional, smiling and friendly advice from our
people
Comfort shopping: returns and lowest price
guarantee with no exceptions
Nobody should beat
our prices!
13
Castorama – strategy, new trends
More feminisation
New, more decorative range
Better display of products to inspire our customers
New way of communication: catalogues (bathroom
inspirations, garden), internet
“How to” boards to make DIY easier
Improved service
Third party installation referrals
Interior designers available in every store on
weekends
14
Brico Depot - strategy
For contractors and big DIY-ers
Close distance, competitive prices
Tighter range to suit their needs:
constructions, installations
Product availability, large quantities
Easy store access, opening hours
For individuals
Competitive prices
Product availability
Close distance, easy store access
Rules
EDLP
Lowest price guarantee
15
Brico – why second format for Poland?
Reasons:
Faster and easier development in Poland
Avoid special planning consent for stores over 2,000 sqm
Gain market shares from competitors and make their
development more difficult
Strengthen Kingfisher Group position on the Polish market
70
70
60
50
Casto
Brico
44
40
30
30
20
4
10
Number of stores planned for
the medium term.
0
Today
Plan
16
Castorama – changing customer
•
Decorative categories: more design,
frequent range changes, new ways of
communication
•
Direct sourcing where it’s profitable
and give us differentiation possibility
•
Own brands: developed with the
group and locally
•
Well structured range very simple
and clear: easy to understand for
everybody!
•
Keep leadership in building and
technical range
•
Be more innovative
17
Castorama / Brico – own brands and
sourcing
Strategic initiatives:
• Increasing own brands to
differentiate from competitors
• More group sourcing, capitalising
on group scale, innovation and
design. Common ranges with B&Q
and other Casto / Brico businesses
18
Castorama – communication with clients
•
•
•
New ads played on major Polish TV
Channels: TVP1, TVN, POLSAT
Institutional and Product
Successful products choice
19
Store visit – Castorama Warszawa Targówek
20
21
22
Warsaw data
2008
Population [person]
City area [km2]
Populate [person/km2]
1 702 139
517
3 292
Number of rooms [average]
3,2
Person for room [average]
0,8
Area of flat [average-m2]
55
Warsaw region - 20 city [person]
3 370 000
23
24

Castorama Poland presentation Warsaw PDF

Transcription

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