102-year-old international retailer expanding rapidly in South Africa 

 ·31 Dec 2025

Leroy Merlin is expanding its operations in South Africa, with the French company set to open a new store in KwaZulu-Natal. 

Leroy Merlin’s history dates back to 1923, when Adolphe Leroy and Rose Merlin sold surplus American goods to aid the nation’s reconstruction in Northern France. 

In 1933, after experiencing substantial success, the husband-and-wife team began offering home-building kits in their store, along with other building materials.

The company continued to expand and opened additional warehouses in northern France after the Second World War. 

The brand was then rebranded from its original name, Stock Américain, to Leroy Merlin in the 1960s. 

After facing financial difficulties, the Mulliez family, who also own Decathlon, acquired a stake in Leroy Merlin in 1979. It took complete control in 1981. 

With a focus on the DIY market, the company saw its first international expansion to Spain in 1989. 

By 2018, the company had expanded to South Africa, opening a massive store in Greenstone, Johannesburg. 

Despite its stores being incredibly large and needing vast amounts of capital, the company has continued to expand across South Africa.

The company opened new stores across Gauteng, including sites in Greenstone, Boksburg, Little Falls, Lone Hill, and a location in Centurion (opened this year). 

The company is now expanding out of South Africa’s richest province and will open a new R220 million location in Durban by November 2026. 

“This flagship in Cornubia is the first step in a broader plan for future development and expansion in KwaZulu-Natal,” said Patrycja Pelowska, Senior Project Manager for Leroy Merlin. 

“The store will not only create local employment opportunities but will also bring accessible, innovative home-improvement solutions closer to the communities of KZN.”

The development is set to inject R300 million in initial private capital, with bulk earthworks already underway. It is expected to create 2,500 construction jobs and 1,200 permanent jobs within Ward 102. 

“We are proud to welcome Leroy Merlin to our City through this significant strategic investment,” said EThekwini Mayor Councillor Cyril Xaba. 

“The commencement of construction on their new 10,000 sqm retail facility will not only transform this area into a vibrant construction site but will also create much-needed job opportunities for the local community.”

The store becomes the first anchor investment for the broader Cornubia Business Park precinct, an initiative expected to create over R2.5 billion in top-structure development value once the whole node is built out. 

On top of its physical presence, Leroy Merlin launched an app for the South African market in September 2025.

International businesses still keen on South Africa 

South Africa has seen a host of international exits over the last year, including Anglo American spinning off its platinum business and HSBC exiting the country. 

However, a host of other countries are still keen on the South African market, with banks, hotel giants and retailers expanding their local operations. 

When it comes to French companies in KZN, Club Med will launch a new R2 billion resort in Tinley Manor in 2026. 

Another luxury hotel player, OKU Hotels, recently purchased the iconic rundown Ritz Hotel in Seapoint, Cape Town.

In the financial services space, London-headquartered Revolut has formally applied for a South African banking licence. 

The company submitted its Section 12 application to the Prudential Authority in mid-November and plans to become a fully fledged bank in the country. 

In the retail space, New Balance is set to open four new stores in South Africa in 2026, having recently opened a new store at Somerset Mall in Cape Town. 

Tata Motors is also returning to South Africa, selling a range of new passenger vehicles, while West Wits Mining has opened the nation’s first new underground gold mine in 15 years.

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