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Castorama

Castorama is a prominent retailer specializing in do-it-yourself (DIY), tools, supplies, and related products, operating large-format stores that offer a wide range of items for , , and outdoor . Founded on 13 June 1969 by Christian Dubois as "Central Castor" in Englos near , —the country's first large-scale DIY warehouse spanning 5,000 square meters—it has grown into a key player in the European sector. The company's early expansion in the 1970s and 1980s focused on , introducing innovative formats that combined hardware, tools, and building materials under one roof, which helped establish the modern hypermarket-style DIY model in . By the 1990s, Castorama had entered international markets, including in 1994, where it now holds a leading position. In 1998, it merged with Brico Dépôt to form Groupe Castorama-Dubois, enhancing its portfolio with value-oriented formats; acquired a majority stake in 1998 through a merger with its B&Q subsidiary, and the remaining stake in 2002, integrating it into a broader network of over 1,900 stores across eight countries. As of fiscal year 2024/25 (ending 31 January 2025), Castorama operates 94 stores in and 107 in , employing thousands of colleagues focused on , , and services. In , headquartered in Templemars, the company reported sales of £2,014 million, with like-for-like sales down 6.2% amid subdued consumer confidence but outperforming the market through growth of 13.4% (7% penetration) and initiatives like store modernizations and dedicated zones in underperforming locations. In , sales reached £1,788 million with flat like-for-like performance (-0.1%), supported by space expansions (including five new stores), programs like the CastoPro zones and a dedicated app, and up 4.3% (3% penetration), alongside sustainability efforts such as reducing CO2 emissions by 2,085 tonnes. In March 2024, Castorama and Brico Dépôt restructured into independent operating companies within the Group to enhance agility and profitability, with Pascal Gil appointed as Managing Director of Castorama while remaining on the group executive team. The retailer emphasizes customer-centric innovations, including the launch of a Mirakl-powered in in January 2025, adding over 500,000 third-party products, and in earlier that year. Despite challenges like market declines and impairments (£84 million charge in ), Castorama continues to prioritize trade customers (24.5% penetration in ) and , positioning itself as a vital resource for homeowners and professionals across its markets.

History

Founding and Early Growth

Castorama was founded in 1969 by Christian Dubois in Englos, near in northern , marking the launch of the country's first large-scale do-it-yourself (DIY) store spanning 5,000 square meters. Initially named Central-Castor—drawing on the French word for "" to evoke industriousness—the store operated within a and introduced a format inspired by American "category-killer" warehouse retailers. This model emphasized vast selections of products, allowing customers to browse and select items independently, which set it apart from the more personalized, counter-service approach of traditional stores. The early years focused on building a comprehensive range of DIY essentials, including tools, , paints, and supplies, all under one to cater to the growing post-war interest in home renovation among households. By 1972, a second store had opened, followed by a third in 1973, with four locations concentrated in the region by 1974. Expansion accelerated in 1975 with the opening of the first store outside the north in Plaisir, a suburb, signaling a push into urban markets and the adoption of the enduring slogan "Chez Casto, y’a tout ce qu’il faut!" (At Casto, we've got everything you need!). Through the 1970s and , Castorama pursued rapid alongside strategic acquisitions, such as the purchase of the 19-store Californie chain, which propelled the network to 35 outlets by 1979 and generated FFr 1.2 billion in sales with 2,500 employees. reached 74 stores by (FFr 3 billion in sales, 5,000 employees) and 86 by 1989 (FFr 7.5 billion in sales, 7,500 employees), surpassing 100 locations in by the early through further integrations like the family-owned Dubois Matériaux network, which expanded offerings into professional wholesale materials. Key milestones included the establishment of flagship stores in major cities like and , alongside innovations in the such as larger store formats (8,000–10,000 square meters stocking 50,000 products), the debut of a 196-page catalog distributed to 3.5 million households in 1987, computerized inventory systems in 1979, an in-house training school in 1989, and the introduction of in-store tool rental services to support projects.

Acquisition by Kingfisher

In 1998, formed a with Castorama by merging its operations into the Castorama Group, acquiring a 55% economic stake in exchange for the integration of 's European activities. This arrangement also encompassed Castorama's ownership of the Brico Dépôt discount chain, creating Europe's largest retailer at the time with combined annual sales exceeding £4 billion. Although held majority ownership, management control remained shared through a co-controlled governing board structure established under the merger terms. By 2002, pursued full ownership amid a broader corporate to streamline its toward DIY . The company launched a £3.2 billion offer for the remaining 45% stake in Castorama Dubois Investissements , including the Brico Dépôt subsidiary, at €67 per share, funded partly through a £2 billion . This acquisition, completed by October 2002, granted Kingfisher 100% control, resolving prior tensions over governance and aligning with its divestiture of non-core electricals businesses like Kesa Electricals. Following the , initiated immediate operational changes to enhance synergies, including the of supply chains across its DIY brands to achieve cost efficiencies and improved . Management structures were reorganized to centralize , with executives assuming full oversight of Castorama's operations, while limited efforts focused on harmonizing product offerings and store layouts with the broader without altering the Castorama . The strategic rationale centered on leveraging Castorama's established and emerging European presence to offset saturation in the UK DIY market, where faced intense competition and limited growth opportunities. This move positioned as a pan-European leader in , emphasizing cross-border scale to drive revenue diversification and operational leverage.

International Expansion and Market Exits

Castorama began its international expansion in the late 1980s, starting with before venturing further afield. The company's first overseas store opened in in 1988 in , marking its entry into the competitive European DIY market. By the early 1990s, Castorama had established a presence in neighboring , opening its first store in in 1994, and briefly operated in with a small number of outlets. These early moves were driven by the goal of replicating its successful French model in adjacent markets with similar consumer demand for products. In , Castorama formed a local subsidiary in 1994 and opened its inaugural store in in 1997, quickly scaling operations to capitalize on the country's post-communist . Through aggressive growth, it became the leading retailer in Poland, a status it has maintained, reaching 50 stores by 2009. Further expansion included entry into in 1997 with a flagship store in São Paulo, aimed at penetrating the South American market, though operations remained limited to a handful of locations. In 2005, following the acquisition by , Castorama entered , opening its first store in in 2006 and expanding to 13 outlets by 2015, targeting urban centers with growing housing demand. Under Kingfisher's ownership, initial strategies emphasized European dominance, leading to further store openings in —reaching 31 by 2008—and consolidation in existing markets. However, economic pressures, including the and rising operational costs, prompted a strategic refocus on core profitable regions. Castorama exited in 2004 by selling its operations to local retailer Casa e Construção for an undisclosed sum, effectively ending its South American presence. The Italian business was divested in 2009 to Groupe Adeo (parent of ) for €615 million, allowing Kingfisher to reduce debt and streamline its portfolio. In , geopolitical instability and underperformance led to the sale of the 15-store operation to Maxidom in 2020 for £73 million, with the transaction motivated by the need to mitigate risks and concentrate resources elsewhere. Similar withdrawals occurred in smaller markets like (closure of six stores in 2003) and (sale in 2002), leaving no active operations outside and by the 2010s. This shift enabled Kingfisher to prioritize investments in its two largest markets, where Castorama generates the majority of its revenue.

Operations

Retail Presence in France

Castorama operates 94 stores across as of July 2025, with its located in Templemars in the region. The store network is primarily concentrated in urban and suburban areas, serving densely populated regions around major cities such as , , and to cater to local needs in space-limited environments. As a leading player in the DIY sector, Castorama competes with , the market leader holding approximately 40% share, and its sister brand Brico Dépôt, which offers lower-cost alternatives. The company positions itself in the mid-to-high-end segment of , emphasizing quality products and services for projects amid a challenging market environment marked by a 6.2% decline in like-for-like sales for the fiscal year ending January 2025. Under parent company , Castorama implemented an accelerated profitability plan for 2024-2025, addressing underperformance through store closures, modernizations, and cost reductions. Key actions included transferring one low-performing store to the Brico Dépôt format, completing five modernizations and one comprehensive refit, and planning interventions for 11 additional underperforming locations in the following year; these efforts contributed to a 1.6% reduction in operating costs and a slight increase in profit to £95 million despite sales declines. Operationally, Castorama integrates with Brico Dépôt to provide complementary offerings, allowing customers access to both premium and budget options within the France portfolio, as demonstrated by the recent store conversion. The company has also emphasized urban store formats, such as the smaller Casto proximity concept (around 380 m²), to adapt to space-constrained city centers and enhance accessibility in metropolitan areas like and .

Retail Presence in Poland

Castorama has operated in Poland since opening its first store in Warsaw in 1997, establishing itself as the country's leading home improvement retailer. By 2025, the chain had expanded to 107 stores nationwide, surpassing competitors and solidifying its market dominance in the DIY sector. As of July 2025, the store count remains at 107. This growth reflects Castorama's strategic focus on the market, where it holds a significant share alongside rivals like , with the two chains collectively accounting for nearly half of the sector. The company's success in Poland stands in contrast to challenges faced in other regions, driven by robust regional economic expansion and consumer demand for home improvement products. Castorama tailors its product assortments to Polish consumer preferences, emphasizing local sourcing and culturally relevant offerings to meet the needs of both urban and suburban households. This approach includes partnerships with regional suppliers to provide items suited to Poland's climate and building practices, such as specialized tools and materials for renovations in a market influenced by post-communist housing upgrades. The retailer operates a mix of store formats, including large suburban hypermarkets that function as comprehensive one-stop shops for major projects and smaller urban compact stores, like the 'Castorama Smart' model, designed for densely populated areas with quick-access layouts. These formats enable efficient coverage across Poland's diverse geography, from major cities to outlying regions. A key development in 2025 was the launch of Castorama's third-party marketplace on January 23, which integrated over 500,000 additional products from verified sellers, enhancing its online presence and driving sales penetration to around 3% early in the year. This initiative builds on the chain's ongoing digital expansion, complementing its physical footprint amid competitive pressures from and , both of which also emphasize strategies. Despite a flat overall DIY market in during parts of 2025, Castorama reported positive sales trends and gains, supported by new store openings and strong performance in trade professional segments.

Store Formats and Customer Services

Castorama operates a variety of store formats tailored to different needs, primarily featuring large hypermarket-style ranging from 5,000 to 15,000 square meters. These locations, typically situated in suburban or peripheral areas, are organized into dedicated departments for do-it-yourself (DIY) projects, , and , providing extensive product ranges and space for customer . To serve high-density urban areas, Castorama has introduced compact formats designed for city centers, such as the "Casto" stores in , which span approximately 300 to 400 square meters and emphasize quick-access essentials inspired by traditional hardware shops. In , the "Castorama Express" variant adopts a similarly streamlined layout with low shelves under two meters high for intuitive navigation, often integrated into retail parks of 1,500 to 2,500 square meters. These smaller formats prioritize convenience in densely populated zones while maintaining core offerings. Customer services at Castorama stores focus on enhancing the in-store experience and supporting project execution. In-home services are available through partnerships with installers, covering tasks like assembly and shelving setup, with free consultations and quotes provided. Tool rental options, offered via collaborations such as with Loxam, allow customers to access -grade equipment like saws, sanders, and drills for short-term use directly in stores. Additionally, planning tools, including an in-store appointment-based service and the Castorama application, enable personalized project visualization with custom plans and cost estimates. The , known as C-Casto or C-Casto Max, rewards customers with points redeemable for discounts, a 5% coupon, and exclusive offers upon annual membership. Indoor navigation via the Castorama , powered by Interact Retail technology, guides shoppers to products using store lighting for precise and aids staff in restocking efficiency. Recent innovations include a 2024 franchise pilot program in , testing the model at two underperforming stores in Lormont and Villabé, with operations transitioning in June 2025 to optimize network efficiency while retaining brand standards. Delivery services integrate with assembly options through partnered providers, ensuring seamless project completion. Omnichannel features like click-and-collect, via the "Drive 2h" system, allow online orders to be prepared for store pickup within two hours, bridging physical and digital shopping.

Products and Services

Core Product Categories

Castorama specializes in a wide array of DIY and products, with core categories centered on tools and , building materials, and outdoor items, and home appliances and furnishings. These categories support both and projects, emphasizing accessibility and quality for and needs. In the tools and category, Castorama offers power tools such as drills, saws, and grinders, alongside hand tools including hammers, screwdrivers, and measuring instruments. This range includes own-brand options like Magnusson for budget-friendly essentials and Erbauer for more robust, professional-grade items, ensuring a mix of affordable and durable choices. Building materials form another pillar, encompassing paints, , supplies, and interior elements like ceilings and . Customers can find low-VOC paints for eco-friendly interior applications, and options, and fixtures including systems for projects. The assortment prioritizes sustainable sourcing, with nearly 100% of products certified from managed forests. Gardening and outdoor products include , care tools, outdoor furniture, and seasonal items like barbecues and heaters. serves as the own-brand for essentials, such as fertilizers and hoses, with an emphasis on peat-free alternatives to support . Seasonal lines adapt to weather patterns, offering planting supplies and summer decking materials. Home appliances and furnishings cover , , kitchen fittings, and fixtures, blending functionality with decor. GoodHome provides integrated solutions like and hardware, often incorporating energy-efficient and sustainable materials. This category differentiates Castorama by extending beyond tools to include broader home decor elements, such as wall coverings and storage systems. Castorama's product strategy balances own exclusive brands, which account for a significant portion of sales, with third-party premium items from established manufacturers. focuses on , including recycled materials in wood waste-derived products and energy-saving options like efficient heaters. Services such as product installation are available for select items to enhance .

Digital and E-commerce Offerings

Castorama operates dedicated e-commerce platforms in and , providing access to its full product catalog through castorama.fr and castorama.pl, respectively. These sites enable customers to browse and purchase items such as tools, building materials, and home decor, with options for or click-and-collect at nearby stores. The company's mobile application enhances the digital experience by allowing users to check product availability in real-time, locate stores via integrated maps, and utilize (AR) features to visualize products in their home environment before purchase. Additional app functionalities include in-store navigation for hybrid shopping experiences and a voice-activated DIY assistant, Hello Casto, which provides tutorial videos controllable by voice commands. In March 2024, Castorama launched a marketplace powered by technology, integrating over 500,000 products from verified third-party sellers to expand its online assortment sevenfold beyond its core ~70,000 items. This initiative contributed to a 32.7% year-over-year increase in sales, reaching £98 million in the first half of 2025, with online penetration rising to 9.0%. Building on this model, Castorama Poland introduced its own marketplace in January 2025, adding more than 500,000 products from third-party merchants to its e-commerce channels and achieving an e-commerce penetration of 11.4% by July 2025. As part of Kingfisher's broader digital strategy, these marketplaces have driven group-wide growth, with marketplace gross merchandise value increasing 62% in the 2024/25 fiscal year.

Corporate Affairs

Ownership and Governance

Castorama has been a wholly-owned of , a London Stock Exchange-listed international retailer, since 2002, when Kingfisher acquired the remaining stake following a arrangement. As one of Kingfisher's four core retail brands—alongside B&Q, Brico Dépôt, and —Castorama operates independently in branding and market strategy while integrating into the group's overarching operational framework. The company's governance structure reflects its status within the Group, with headquarters located in Templemars, . Castorama France is led by CEO Pascal Gil, who assumed the in April 2024 and continues to oversee operations as of 2025; the CEO reports directly to 's Group Executive, ensuring alignment with group-wide priorities such as sustainability and digital transformation. The board of Castorama operates under 's central governance framework, chaired by Claudia Arney at the group level, and includes a mix of executives and local representatives to address regional regulatory and market needs. Historically, Castorama operated as an independent entity from its founding in 1969 until 1998, when it entered a with that granted the latter a 55% stake; full ownership was achieved in 2002 with no subsequent changes to the subsidiary structure. Within the broader Group, which encompasses over 1,900 stores across eight European countries, Castorama plays a pivotal role in establishing the company's leadership in the DIY sector, particularly through its strong presence in and .

Financial Performance

Castorama's financial performance is closely integrated with its parent company, , contributing significantly to the group's overall results as one of its largest banners. In the 2024/25 (ended 31 January 2025), Castorama reported sales of £2,014 million, a decline of 6.8% from the prior year, with like-for-like (LFL) sales down 6.6%, amid subdued consumer demand and milder weather impacting seasonal categories. This contributed to 's group sales of £12,784 million (approximately €15 billion), a 0.8% decrease at constant currency, and an adjusted pre-tax profit of £528 million, though statutory profit before tax fell 35.4% to £307 million due to impairments and restructuring charges. In contrast, Castorama demonstrated resilience, with sales rising 3.2% to £1,788 million and LFL sales broadly flat at -0.1%, supported by stable market conditions and trade customer initiatives. sales grew 4.3% in Poland, maintaining 3% penetration, bolstered by the launch of a in Q4 FY 2024/25. Overall, Castorama's retail profit totaled £185 million, with at £95 million (down 29.8%, margin 2.4%) impacted by an £84 million impairment and £33 million in costs and provisions, while Poland rose 8% to £90 million (margin 5.1%). To address challenges in , announced a profitability plan in March 2024 aimed at enhancing performance through store optimizations, cost reductions, and trade focus, including work on 13 underperforming stores and . This initiative incurred £15 million in costs and £18 million in provisions during FY 2024/25, with early progress in rightsizing stores yielding low double-digit sales density improvements compared to FY 2019/20 levels. In , grew 13.4% to 7% penetration, aided by a Q1 marketplace launch that reached 14% by year-end. Historically, following Kingfisher's full acquisition of Castorama in for €5 billion, the banner supported robust group expansion in . However, recent years have faced headwinds from , competitive pressures, and economic slowdowns, leading to LFL sales declines across . The completion of Brico Dépôt Romania's sale in May 2025 for €70 million enabled greater strategic focus on core markets like Castorama , where the divested unit had represented just 2.1% of group sales but a retail loss. Kingfisher allocated substantial to Castorama in FY 2024/25, with £157 million to France and £69 million to for store modernizations, digital enhancements, and expansions—part of the group's £317 million total capex (approximately €370 million), emphasizing 44% on stores and 31% on technology. This investment supports ongoing resilience in , where five new stores were opened, and aims to counter France's pressures through targeted upgrades.

Sustainability and Corporate Responsibility

Castorama, as part of , aligns its sustainability efforts with the group's overarching target by fiscal year 2040/41 for Scope 1 and 2, and by 2050/51 for Scope 3, focusing on reducing environmental impacts across its and operations. In 2024/25, Castorama contributed to Kingfisher's achievement of 92% of electricity sourced from zero-carbon or renewable sources group-wide, including through the installation of 17 photovoltaic systems in adding 2.5 MW capacity. The company emphasizes sustainable sourcing, with 97.9% of wood and paper products responsibly sourced in 2024/25, including a significant portion certified by the (FSC). Castorama has phased out peat-based soils for its own-brand products as of 2025 to protect ecosystems, while promoting alternatives like Verve peat-free . Additionally, over 95% of its interior paints carry the A+ label for very low (VOC) emissions, supporting healthier indoor environments. Efforts to reduce plastic packaging include Kingfisher's group-wide target of a 25% reduction in own exclusive brand plastic by weight by 2025, with Castorama achieving a 10.2% year-on-year decrease on a like-for-like basis in 2024/25. On the social front, Castorama implements diversity and inclusion programs tailored to its markets, such as the Women Leader initiative in to promote and the employment of 159 colleagues with disabilities in during 2024/25. Employee development includes apprenticeships, internships, and mentorships, with 123 participants in France's NQT program since 2021 to build skills in retail and . Community engagement features partnerships like the Majsterkowo workshops in , which reached 50,000 children across 104 stores in 2024/25 to teach DIY skills, and the Castorama Foundation's Boutiques Solidarité in , supporting 55 solidarity projects with over 600 colleagues volunteering. These initiatives align with 's goal of reaching one million people through community investments, totaling £6.0 million group-wide in 2024/25. Ethically, Castorama ensures compliance with EU regulations on product safety and responsible sourcing, including phasing out harmful chemicals like and , with 98% of own exclusive brand chrome-finished products free of VI in 2024/25. The company conducts audits on 85% of high-risk production sites every two years, addressing 127 business-critical issues in the latest reporting period. A notable past labor resolution involved the 2013 court battle over Sunday trading in , where Castorama successfully obtained permission to open stores on Sundays after initial fines were imposed, contributing to broader legalization efforts. Castorama's and corporate responsibility activities are detailed annually in Kingfisher's Responsible Business , which includes a Performance Data Appendix aligned with frameworks like the UN Global Compact, Task Force on Climate-related Financial Disclosures (TCFD), and (SASB). Key metrics from the 2024/25 highlight progress, such as 53.4% of group sales from sustainable home products and Castorama Poland's to Landfill program, which diverted 730 tonnes of recyclable waste.

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