The Group's new geographic footprint

Regionalizing in the US

Rexel's US strategy made it possible to accelerate sales growth and improve profitability. For a little over a year, reorganization efforts have concentrated on three key areas:
> Strengthening local networks, with 52 new branches at the end of March 2019 and a nationwide branch extension and renovation plan
> Improving service primarily through a larger product offering closer to customer needs
> Regionalizing by focusing business on 8 regions (Northwest, Midwest, Northeast, Southeast, Florida, Gulf Central, Mountain Plains & California) instead of a national banner-based approach in order to improve customer relations and leverage synergies.

The US market remains fragmented, with less than 30% for the top five players. However, business is particularly consolidated at the state level, the best scale by which to achieve profitability. Platt, which is based in Oregon and was acquired in 2012, is a perfect example: its local activities have substantial market share, its logistical organization is extremely efficient, its brand is well-recognized by customers, and its profitability is higher than that of the national average.
In this environment, Rexel's reorganizational efforts should continue to generate greater operational efficiency, gain market share, and improve profit margins.


2018 sales in North America, +6.6% vs. 2017

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