Mr.Bricolage, the unifying network of independent local trade for home and garden beautification, presents its consolidated results for the first half of 2022, approved by the Board of Directors meeting on July 27, 2022. In a normalizing market After a strong growth phase during the health crisis, the volume of business of the Group’s networks posted growth of 16.3% like-for-like compared to the first half of 2019, the benchmark year before the health crisis.
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Federator of local independent trade for home improvement
First semester of deployment of the 1Pacte plan for sustainable growth
The implementation of the 1Pacte plan, the 2022-2025 strategic plan to place the Group in sustainable growth, is progressing, in particular the modernization of information systems and CSR actions. Finally, the Group’s good operational and financial performance made it possible to negotiate a refinancing of its debt: “This first half truly marks the launch of our 1Pacte 2022-2025 plan, our collective commitment to sustainable growth. The projects presented 6 months ago are well under way, supported by the adherence of head office and store teams to this ambitious, modern strategy that is faithful to the brand’s values. I thank all the teams mobilized with enthusiasm and determination in the success of this plan”underlined Christophe Mistou, Managing Director of the Mr.Bricolage Group, before continuing: “Today, the solidity of our Group, the competitiveness of our brand, the transformation and modernization of our organization ensure better resilience and allow us to fully support our networks in this period marked by economic and geopolitical uncertainties. After the big leap forward in the sector during the health crisis, it is normal for our market to stabilize. It is in this context that we must continue to demonstrate our solidity and our ability to support member-entrepreneurs, ever more numerous to join us, in the development of their commercial performance and the modernization of their points of sale”.
Good performance in a market in the landing phase
As of June 30, 2022, the member and affiliate networks in France and abroad had 925 stores, compared to 908 at the end of December 2021. Over the half-year, the Group recorded a net balance of 17 new points of sale, including 1 for the teaches Mr.Bricolage. The growth momentum is in line with the objective of reaching 1,000 points of sale by the end of 2025. Together, these stores represent an overall business volume of approximately €1.2 billion. Compared to the 1st half of 2021, the commercial dynamic, after being stimulated by the health crisis, is normalizing with a decline of -5.7% at current surfaces and -7.4% at comparable stores. This expected trend only slightly attenuates the increase recorded during the health crisis with posted growth of 16.3% compared to the first half of 2019.
In France, the networks of the Mr.Bricolage Group totaled 853 stores as of June 30, 2022 compared to 836 as of December 31, 2021, i.e. a net balance of 17 new points of sale. Together, these stores achieved a volume of business of 1.0 billion euros, up 16.4% compared to the 1st half of 2019 on a comparable store basis, close to the evolution of the market over the period (+16 .9%)1 . Stores under the Mr.Bricolage brand in mainland France also grew by 16.9%.
Internationally, the Mr.Bricolage banner generated a volume of business of €156.4 million, down -2.1% on a comparable store basis, with still 72 stores outside France in 10 countries. The increase in e-commerce sales, (excluding click-and-collect = 2-hour withdrawal) to €5.5 million, up +44.1%, continues under the effect of the development of the direct delivery offer supplier and the increase in references available on www.mrbricolage.fr. Click-and-collect sales are directly integrated into store sales.
Consolidated revenue for the 1st half of 2022 amounted to €175.5 million, almost stable (-0.4%) compared to the 1st half of 2021. The 1.9% increase in sales of goods is linked in particular to the evolution of e-commerce transactions (excluding click-and-collect), the continuation of range changes and the inflationary context. The -6.3% decline in the provision of services is linked to the evolution of the volume of business and purchases of the stores during this period, and to a less favorable product mix over this half-year.
Deployment of the 4 Pillars concept
With a total of 65 stores under the Mr.Bricolage brand switched to the 4 Pillars concept at the end of June 2022, the deployment of the 4 Pillars concept continues in a context of geopolitical uncertainty and inflation which temporarily slows down investment projects . As part of the 1Pacte plan, Mr.Bricolage SA offers solutions to member-entrepreneurs wishing to modernize their stores in exchange for an increased member charter period. 14 other deployment projects are planned by the end of 2022.
Among the projects that should materialize in the second half of the year, Mr. Bricolage will inaugurate its return to the center of Paris next fall with a 689 m2 convenience store, in the colors of the 4 Pillars concept, located at Ateliers Gaîté, in Paris- Montparnasse.
Implementation of the 1Pacte plan
1Pacte pursues 4 objectives – Offer, Customers, Networks, CSR – relying on two levers – Human transformation and Information systems. The modernization of the SDSI at head office and in stores is progressing. It contributes to a more agile management of stocks, prices and customer follow-up. To date, 23 stores are equipped with the CGI Retail solution, and nearly 50 more stores will be equipped in the second half.
In addition, several projects have been implemented to make stores more virtuous and responsible:
- The signing of partnerships to deploy charging stations in the car parks of the stores in its networks. By the end of 2022, nearly twenty points of sale of the Mr.Bricolage Group should be equipped with fast and ultra-fast charging stations, in order to allow their customers to charge their vehicles while shopping.
- The negotiation of an offer for the installation and supply of LED lighting in stores. This technology strongly contributes to the reduction of consumption, which makes sense both in terms of sobriety and management of energy prices.
- The launch of the Spareka self-diagnosis service on the merchant site to support customers in the repair of their tools and household appliances.
In order to make an initial diagnosis and highlight areas for improvement in terms of CSR, an assessment was carried out by EthiFinance, an independent extra-financial analysis agency. Four areas (governance, human capital and transformation, environment, stakeholders) were covered. Mr.Bricolage obtains a score of 61/100, qualified as “advanced” by the analysis, and which testifies to the Group’s commitment in these areas.
The outlook for 2022
- During the second half of 2022, the Group will continue to deploy the 1Pacte plan to strengthen its competitiveness and meet the challenges of responsible growth with the following objectives:
- Development of the network of stores under brands and affiliates, in France and abroad, to achieve the ambition of more than 1,000 points of sale by 2025;
- Tight support for members-entrepreneurs of the network in the modernization of their stores according to the 4 Pillars concept;
- Acceleration of the Human Transformation of head office and network teams in the service of the common ambition to be the champions of human relations for sustainable growth.
In view of the current economic context (rise in interest rates, inflation which affects the purchasing power of households, tensions on the prices of raw materials and energy, the Russian-Ukrainian conflict), the Mr.Bricolage Group is counting on a less favorable market environment in the second half of 2022 than in the previous two years. However, the Group relies on solid fundamentals, a clear course and gives itself the means to strengthen its competitiveness to continue its growth trajectory. Changes in profitability ratios will take into account the investments planned under the 1Pacte plan. Over the next 4 years, the plan provides for an increase in investments linked to the implementation of the 1Pacte plan, which the Group would adapt if conditions were to change.
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