Growth of over 20% in 2021 at Roche Bobois

Interesting dialogue, within the framework of the Oddo BHF Forum, with the chairman of the Roche Bobois management board, Guillaume Demulier. Its strategy is to operate own stores in the largest cities and to resort to franchising when volumes are smaller and in conquest territories, such as Australia. The trademark royalty is then 4%. In the United States, a country where the gross operating margin is very high, an agreement has been made with a large franchisee to integrate its stores. The three on the west coast (San Francisco, Seattle, Portland) were bought in November and three others (Atlanta, Houston and Dallas) will be acquired at the start of 2022. The group has the means for this policy, with cash, net of debts, of 65 million euros (excluding rental commitments). Shareholders are also strong with the Roche and Chouchan families (majority shareholders) and, since 2013, the Italian fund listed in Milan Tamburi Investment Partners (35% of the capital). However, apart from the buyout of franchisees, no external growth is on the agenda.

Roche Bobois, tells us its leader, “ last year achieved a growth in turnover of more than 20%, much higher than that of the market, and even of 30% in volume (franchisees included) and does not see any sign of slowing down “. This rate even exceeds 50% in countries like the United States, China or Morocco. In China, the franchisee has ten stores, for more than 20 million euros in turnover. Growth is supported by advertising spending.

The sales made entirely online are quite minimal, as is the case for the entire high-end furniture market, where brands such as Ligne Roset and Bo Concept are also present. Beyond a certain amount, a bit like for a new car, customers prefer at least to finalize the planned purchase in store, especially since there are quite complex options and customizations. The average basket is 3,500 euros for Roche Bobois and 2,000 euros for Cuir center, the other brand of the group, active only in France (78 stores). In the event of an online sale, the nearest store is responsible for managing it. The furniture comes from independent manufacturing partners, in a large proportion Italian, Portuguese and French.