Leroy Merlin files a second legal appeal against the municipal license granted to Bauhaus in Torrevieja

English version

Leroy Merlin files a second legal appeal against the municipal license granted to Bauhaus in Torrevieja

The French multinational Leroy Merlin has filed a second administrative appeal before the Elche Administrative Court against the building license granted by the Torrevieja City Council to the German home improvement chain Bauhaus for the opening of a large DIY store in Sector 20 – La Hoya.

This new legal action follows the dispute that began in August 2024, when a previous municipal license issued to Bauhaus was annulled by the court after an earlier appeal lodged by Leroy Merlin. On that occasion, the court ruled that a mandatory public consultation phase within the urban planning procedure had not been properly completed, forcing the municipality to restart the entire administrative process.

After correcting the procedural shortcomings and completing the required legal steps, the City Council once again granted the construction license to Bauhaus, allowing the project to move forward. However, Leroy Merlin has decided to challenge the permit again, although the specific legal grounds for this second appeal have not yet been made public.

According to the municipal secretary, Federico Alarcón, no precautionary measures have been requested so far, meaning that the license remains valid while the court reviews the appeal.

The legal dispute has delayed the opening of the Bauhaus store by more than a year. The project is located in one of Torrevieja’s key urban expansion areas, close to the CV-905 road and near a large residential development with thousands of planned homes.

From an economic perspective, the arrival of Bauhaus had been viewed as a potential boost for employment and local commercial activity, but the legal conflict has postponed its implementation. The case highlights the importance of strict compliance with administrative and regulatory procedures in large-scale urban development projects, particularly in sectors characterized by intense commercial competition.

Major European DIY and Home Improvement Chains

No.	Company	Country	Turnover (€ bn)	Presence and format
1	IKEA	Netherlands 🇳🇱	≈ 45.1	Furniture and home products. Present across almost all EU countries.
2	Groupe ADEO	France 🇫🇷	≈ 30.2	Group including Leroy Merlin, Weldom and Bricoman.
3	Kingfisher plc	United Kingdom 🇬🇧	≈ 15.2	Owner of Castorama, B&Q and Screwfix.
4	OBI	Germany 🇩🇪	≈ 8.2	Extensive DIY retail network across Central and Eastern Europe.
5	Stark Group	Denmark 🇩🇰	≈ 7.8	Major B2B supplier of construction materials.
6	Hagebau	Germany 🇩🇪	≈ 6.6	Cooperative of independent retailers, strong in the DACH region.
7	XXXLutz Group	Austria 🇦🇹	≈ 6.4	Main competitor to IKEA in German-speaking markets.
8	Hornbach	Germany 🇩🇪	≈ 6.2	Large-format DIY hypermarkets with garden areas.
9	Bauhaus	Switzerland 🇨🇭	≈ 6–8*	Private company; exact figures not publicly disclosed.
10	JYSK	Denmark 🇩🇰	≈ 5.6	Furniture, bedding and home décor.

* Sector analysts’ estimate.

Why Spain is a key market for DIY retail chains

Spain has become one of the strategic markets in Southern Europe for major DIY and home improvement chains due to several factors: sustained residential construction, large-scale renovation of existing housing stock, the importance of residential tourism, and a high rate of home ownership. In addition, the mild climate encourages year-round maintenance of gardens, terraces and outdoor spaces. In this context, expanding cities such as Torrevieja are particularly attractive locations for large retail operators, intensifying competition and, in some cases, shifting it into the judicial arena.