A stylish partnership

Transcription

1 April 2015 LA FOIR FOUILLE and CM-CIC Investissement A stylish partnership

2 «Our style has changed, not our prices». La Foir Fouille s advertising slogan perfectly sums up its successful transformation. With revenue of 550 million and 220 stores, it is now a leading discount retailer. Ivan Rapoport has headed the company since 2000 and is the main architect behind the change. Ivan Rapoport

3 La FOIR FOUILLE and CM-CIC Investissement, a strong franchise. How has the La Foir Fouille concept developed over time? Ivan Rapoport: La Foir Fouille was created 40 years ago, based on the discount concept. At the end of the 1990s, while continuing to focus on offering good value, we moved into discounted home equipment in the very broad sense, and we now sell decoration products, creative leisure products, bathroom items and party supplies. Each of our stores has over 20,000 product lines. We have also completely stopped selling clothes, which accounted for 40% of our product range 25 years ago. The stores themselves have changed a lot. I.R.: Yes. We are now a long way from our original concept, in which products were displayed on pallets in warehouses. Our stores are still located in the outskirts of cities, but they are much larger. They feature several zones, for example a «shop in shop» for party supplies, and their layout encourages customers to walk around the whole store. This higherquality position is also reflected in our visual identity. 90% of our stores were renovated in line with that new identity between 2010 and The changes in our product range and communication mean that an average store now generates 2.8 million of revenue as opposed to 1 million in Does your business model rely on franchises? I.R.: 75% of our stores are operated under franchise, and our franchiseholders have historically been closely involved in changes to our retail concept. They are all genuine retailers, who have their finger on the pulse when seeking out new trends and opportunities. They are very happy to help us carry out tests regarding products and store concepts, and this gives us great momentum. Another novel aspect of our business model is that franchise-holders have great freedom in their procurement. This forces us to review our products, prices and packaging on an ongoing basis. It s a successful approach, because currently our franchise-holders source over 80% of their products from our purchasing centre and listed suppliers. They generate sales of 2,000 per m2, which is well above average in our industry. What are your main areas of development today? I.R.: We have chosen to pursue controlled growth, opening around 10 stores per year. At that rate, we can focus closely on quality, and our failure rate for new stores is close to zero. Adding in the 10 stores that we transfer in or extend every year, we reinvent almost 10% of our network annually.

4 We also work hard to generate loyalty among our customers. Naturally, that includes the 31 sales promotions we hold every year to capture and retain shoppers attention, but we are also developing new «click and collect» online shopping services. What do you get from your partnership with CM-CIC Investissement? I.R.: CM-CIC Investissement bought into our company in 2010, but CM- CIC is also one of our longest-serving banking partners and it has always supported our growth model. Aside from financial considerations, one of the best things about our relationship is that we can benefit from the experience of an investor that is involved in a number of different companies. CM- CIC Investissement provides us with indicators and advice that we can use to improve our strategy. over e550 million of revenue 220 stores staff

5 LA FOIR FOUILLE as seen by Amaury Leleu, CM-CIC Investissement. La Foir Fouille s success is based on its ability to develop its concept over the last 30 years. It used to be a purely discount retailer, but now takes a modern approach, offering new products alongside permanent lines within a structured product range based on four key factors: novelty, choice, discount prices and pleasure. Amaury Leleu It now has a more quality-focused position, which is also reflected in its new visual identity and the programme of store renovation and modernisation. Stores are now larger and are organised into different zones through which customers are encouraged to walk. La Foir Fouille s new product range and communication mean that it is an attractive and successful model for both franchise-holders and shoppers looking for the right product at the right price. We have been pleased to work with Ivan Rapoport and his teams since 2010, and to support them in rolling out the new store concept, modernising stores and boosting the network s growth. The company is pursuing its development policy with determination. The network now has 220 stores, and should have another 10 by the end of the year. The quality of the management team and its comprehensive knowledge of the market mean that we are confident about the future of this high-potential company.

6 Conquête de l Everest en 1953 par Edmund Hillary et Tenzing Norgay. NOTHING IMPORTANT IS ACHIEVED WITHOUT TRUST This conviction inspires the men and women of CM-CIC Investissement on a day-to-day basis in their relations with the entrepreneurs they work with over the long term. We cover all areas of corporate finance - including venture capital, expansion capital, buyout financing and M&A advisory - in order to meet companies equity financing needs. In addition to professionalism, it is this resolutely peoplebased view of the business and this local relationship with business owners that characterise the success of our approach. CM-CIC Investissement - Lille 33, avenue Le Corbusier Lille Tél Paris - Lyon - Nantes - Lille - Strasbourg - Bordeaux - Montréal TheLINKS.fr - RCS Nantes B Avril Crédits photos : Copyright 2001 British Photographers Liaison Committee/Finers Stephens Innocent As agreed by BAPLA, AOP, NUJ, MPA and the BFP - Musée Air France - Getty Images - La Foir Fouille. Head office 28 avenue de l Opéra PARIS