🛒 Marketplace Milestone
Leroy Merlin’s online marketplace, launched three years ago, recently reached a significant milestone. In January 2024, it became profitable for the first time. Dmitriy Anderson, CIO and head of e-commerce and marketplace strategy, shared that this success is crucial, especially given the competition from giants like Amazon. Leroy Merlin’s marketplace features over 500 third-party sellers and offers millions of products, compared to the 200,000 items in their physical stores. Anderson said, “Making sure these numbers keep growing and the marketplace stays profitable can sometimes feel like a nightmare.”
🌍 Global Expansion
The marketplace has significantly expanded Leroy Merlin’s product range. For example, in France, the retailer now offers over three million additional products through third-party sellers. This allows customers to find everything from kitchen appliances to furniture in one place. Anderson highlighted their success in South Africa, where the marketplace was launched during the global pandemic in 2020. Despite budget cuts and initial doubts, Anderson pushed the project forward, leveraging increased home improvement activities during lockdowns. Their ecommerce sales increased 20 times between 2019 and 2020.
🚀 Partnering with Mirakl
Instead of building their own platform, Leroy Merlin partnered with Mirakl, a French e-commerce software company. Anderson described Mirakl as the "Rolls Royce of marketplace platforms." Mirakl handled seller onboarding, product catalogues, and platform integration. This approach saved time and resources, allowing Leroy Merlin to launch quickly. Since then, the marketplace has consistently exceeded sales targets. In its first year, the goal was ZAR5M ($278K), but they closed at ZAR12.5M. In 2023, they targeted ZAR80M and achieved ZAR100M. For 2024, they aim for ZAR185M.
🔧 New Services Marketplace
Building on their marketplace success, Leroy Merlin launched a services marketplace this month. Developed with Xebia using Appian software, it connects customers with contractors for various tasks. Anderson explained, “It could be a babysitter or a cleaner or a gardener. It could be for a small job like having a locksmith change a door handle or a big project like hiring a team to renovate an entire bathroom or kitchen.” This new platform adds convenience and credibility, ensuring customers can find reliable service providers for both small and large projects.
How do you think Leroy Merlin can keep growing its marketplace?
