[size=75:1tbr315o]Regal 12 April 2010

President Chain Mr.Bricolage Jean-Francois Boucher: So 2010 will be a difficult year for our business

Jean-Francois Boucher is CEO of the French chain of type DIY "
Mr.Bricolage. This is the company which first introduced this format in the Bulgarian market and is now struggling with its main competitor - Germany's Praktiker, for first place. Crisis, economic instability and decline in the market automatically led to a slowdown in this business with double digit growth rates. However, the market "
DIY continues to be insatiable for new players entering it.

Boucher was elected to the Governing Body of Mr.Bricolage group in May 2007 he held the posts since then CEO of the group and ANPF - parent organization of Mr.Bricolage. He has over 20 years management experience in various French and international companies. This week he visited Bulgaria.

What do you think of the country last year?

- Bulgaria continues to develop, but slowed pace. The country is among the regions most hit by the global crisis. Comment from my point of view and particular business DIY. The market for such goods is increasingly growing competition. Customers do not consume the same way as before. Limit costs, buy less. And probably the whole this is due to difficulties in the economy.

How was 2009 for your company and the whole business?

- Market DIY "
decline, sales of our competitors decreased. At least this is the information we have. Specifically Mr. Bricolage in Bulgaria has double-digit drop in sales the previous year. However, we have faith in the potential of the Bulgarian market and its development.

How to develop the market in Bulgaria to other countries that are run?

- Bulgaria has an identical decline in other European countries. Some regions suffer less severe consequences of the crisis, such as France. And others have even increased. Eastern European countries have developed very rapidly in recent years. So now the outflow of investments are felt most strongly in them.

When we felt the crisis at the global level and what have applied anti-crisis plan?

- The first signs of crisis are felt at the end of 2007 in France. Downward trend has deepened in two consecutive years. International markets crisis broke a little later. In Bulgaria, the most heavily felt in 2009 as in Spain. However, Morocco and Belgium, where we also have stores continue to grow. Taken concrete measures to deal with the downs. We work more on the range in our shops and we aim to more dynamic and price promotions.

What changed in the range?

- Our goal was to adapt a supply store, so that is closest to the expectation and demand of customers. This is work that continues in a period of three to four years. We started in early 2008 the first fruit is felt at the beginning of last year and plan to apply this approach in Bulgaria.

What will change in Bulgaria?

- We adapt each store to local customers. We will work on assortment, promotions, customer communications and positioning of goods.

What exactly is this adaptation? Will change the product mix will change the pricing policy or something else? Adaptation is a broad concept.

- This means that shops will have to be rearranged. Will reconsider and price range, there will be more own brands and around them are other commodities. This adaptation includes work on price positioning of a product range.

Does this mean that the individual shops in Bulgaria will have a different arrangement of the range and different prices?

- Not necessarily. But above all, supply will depend on the area of the store and where it is. In larger sites will have a kind of goods and prices, and smaller - others. There will be a classification of large stores and will look different from small.

Are you planning new stores in Bulgaria?

- Working on new projects. But now they are focused on Serbia and Albania, and later will return to Bulgaria.

When?

- Now Albania develop a new in Bulgaria likely will happen in 2011

You mentioned that you believe in the Bulgarian market and its potential. What are the reasons for your faith, provided that the market is small, there is strong competition and soon it is not expected recovery of the real estate business?

- With one simple reason. The purpose of Mr. Bricolage, when entering with its chain in the country, is among the leaders - the top three. We argue for first place with our main competitor in Bulgaria. About the country retains an important place in our strategic development. Yes, the markets in Eastern Europe are experiencing a difficult period, but should in the coming months or years to regain the pace of economic growth and we continue to believe in the future of this market.

If we put Bulgaria in the group of countries that believe what those who rely to a lesser extent?

- I believe very much the future of business in Spain for example. The reason is that the market there is quite difficult and was so over the past 15 years. The company failed to establish itself as one of leadership. So I am not convinced of the potential market there.

How to change business crisis DIY?

- I can talk about changes in France. And there they were great. Customers attach increasing importance of proximity to the store. In every sense. Much more important than before to become sellers are competent and able to consult. Following the crisis consumers pay increasing attention to cost-quality and we strive to offer it to them.

When do you expect the market to begin to recover?

- Not to be a soothsayer, I'm afraid that 2010 will be a difficult year. I hope to go to the surface early next year. For this we rely on the results achieved last year.

Despite the decline in the market in Bulgaria chains entering new DIY. How do you explain it?

- So far, Bulgaria is considered undeveloped market. Our European competitors have long been provided, in their development plans to enter here. That and they do.

Bulgaria has the image of the country in which the chains 'DIY' work with high prices. Why is this so and when it will change?

- I told you I suggest you have a lot more to work on their price image. Because in fact, large retailers are able to offer very good price to the final customer. Both have a wide range of products at low prices, but at the same time they are quality. Yes, our task is to price work on their image.

The issue is not only the image but to the final bill.

- Sometimes our prices are such as we have products that we import from France and come a little bit more expensive for the Bulgarian customer, but are associated with better quality. Of course, we must work not only on the image and on the prices themselves.