A brand reorganisation by holding company Adeo will see its Leroy Merlin and Aki stores merging in Portugal and other countries.
The management of the French group of interconnected companies intends to join the two DIY, construction, decoration and garden businesses into one to supply the Portuguese market.
The news was released in Spain where the media revealed the group's intention is to be "closer to the consumer" and to offer an experience "totally adapted to the needs of customers."
The merger process starts this year and will be completed by 2020 but, according to sources from Leroy Merlin and AKI in Portugal, the reorganization of the business structure still requires "rigorous analysis and only after the conclusion of a study can a more concrete decision be made, along with defining how it will happen."
"Adeo's structural objective is to reinforce synergies between its companies and the different markets in view of the challenges of the future."
Adeo says it is always looking at new business mixes that can help it achieve its growth goals.
Aki has 37 stores in Portugal, Leroy has 12 including one that has just opened at the IKEA retail site near Loulé.
Comments
So will Aki drop their prices, or will Leroy Merlin raise theirs?
I think we all know the answer to that one.
Is this concept new for this business? What was their focus before they hit on this one?