Global strategic lodging procurement, sustainability & enhanced adoption

Challenge

Groupe Adeo, part of the Mulliez Group, stands as a leader in the global home improvement retail market. Originating in 1923 and evolving into Groupe Adeo in 2007, it comprises six brands, including Leroy Merlin and Bricoman. With a turnover of €30.7 billion in 2023 and 110,000 employees across 21 countries, it is the premier home improvement retailer in France and ranks third worldwide.

Despite this strong global position, Groupe Adeo faced several challenges that led to a reevaluation of its procurement, travel, and expense strategies.

Decentralized Procurement:
Due to its wide range of brands, Groupe Adeo suffered from a decentralized procurement approach that created inefficiencies and missed savings. To address this, the group established the Société de Recherche Synergies (SRS) to centralize and optimize procurement while allowing brands to maintain autonomy over supplier selection.

Low Program Adoption:
Before partnering with HRS, adoption of the existing travel and expense system was low. The system did not meet user needs or preferences, leading to dissatisfaction and inefficiencies.

Key KPIs (2023 vs. 2022 / 2023–2024 YTD):

• -6.5% cost avoidance vs. public rates
• 84% program adoption (up from 34%)
• -10% CO₂ per room night
• 98% VCC acceptance

Solution

To address procurement and program adoption challenges, Groupe Adeo initiated a strategic alliance with HRS in August 2021 through a three-year contract focused on lodging management end-to-end. Key drivers for choosing HRS included procurement expertise, attractive rates, and the successful precedent set by Auchan, another Mulliez Group company.

Savings:
A critical goal was achieving financial savings across travel and expense management. The partnership avoided substantial costs compared to sharply rising public rates, demonstrating the efficiency of the strategic procurement approach.

Sustainability:
Groupe Adeo and HRS committed to reducing the carbon footprint associated with travel. This led to a 10% reduction in carbon emissions per room night, reflecting strong environmental responsibility.

Traveler Satisfaction & Adoption:
Enhancing the user experience and increasing adoption rates were key objectives.
Program adoption rose from 50% to 84%, proving the effectiveness of the implemented processes.
Virtual Credit Card (VCC) acceptance reached 98%, indicating high compliance and satisfaction with the payment solution.

These results exemplify the project’s success and position it as a model for conglomerates refining their travel and expense management.

Results

Groupe Adeo achieved:

• -6.5% cost avoidance vs. public rates
• 84% program adoption (up from 34%)
• -10% CO₂ per room night
• 98% VCC acceptance

These results highlight improved cost control, sustainability performance, and traveler satisfaction through a more efficient, centralized, and digitized lodging program.

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