ADEO to open 18 stores and recruit 1000 in Portugal by 2020

 In News

France’s ADEO, the owner of DIY and home improvement chains AKI and Leroy Merlin, is to open 18 new shops and contract 1000 employees in Portugal.

It forms part of a “convergence plan” in which the two brands are to be further aligned in a major restructuring plan to save money and leverage investments.

“The expansion plan for the next few years is ambitious with 18 new stores opening by 2021 and the taking on of 1000 staff” states a communique from the group.

“At the same time, ADEO is reorganising its company structure to accelerate the development of different business models and become more competitive.”

In a statement to the Portuguese news agency Lusa, the group said that “the convergence between AKI and Leroy Merlin will increase current market and consumer demands” without stating the actual investment involved in the merger. 

ADEO added that it had not yet decided if it would eliminate one of the brands but would announce a decision by the end of the third quarter of 2018.

“The convergence process towards one company structure is ongoing with the help of external entities. It will be a process of gradual transformation and integration over the next three years, both in terms of central structure and stores.”

French company ADEO (formerly Leroy Merlin) is the third largest home improvements group in the world and owns several international brands such as Weldom, Bricocenter, Zodio, Aki and Bricoman. 

It operates in France, Spain, Portugal, Russia, Poland, Ukraine, China, brazil, Greece, Cyprus and Romania.

In 2016 ADEO achieved a record sales turnover in Portugal of €212 million at its 34 stories with profits up 9% year-on-year.