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Carrefour

Presented by:

Shirley Chen, Yi Wang,

Lindsey Milliken, and Julie Hoff

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Agenda

Introduction

History

Industry Analysis

Company Analysis

Competition Recommendations

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Introduction

Largest retailer in Europe

Second largest retailer in the world

Various retail business 22nd of the top Fortune 500 companies

11,000 stores

420,000 employees

More than 30 countries and areas

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History

1959- Fournier and Defforey foundedCarrefour in France

1960- the first supermarket began inAnnecy, Haute-Savoie

1963- the world's first hypermarket

1969- the first overseas hypermarket wasbuilt in Belgium

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History

1973- hypermarket in Spain

1975- hypermarket in Brazil

1982- hypermarket in Argentina 1988- Carrefour owned 65 hypermarkets

domestically

1989- first hypermarket in Asia, in Taiwan

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History - Carrefour in America

1990- first hypermarket in Philadelphia,United States

1991- second hypermarket in New Jersey 1993- Carrefour closed two stores in

America

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History

1993- first hypermarkets in Italy andTurkey.

1994- first hypermarkets in Mexico andMalaysia

1995- first hypermarket in China mainland

1996- hypermarkets in Thailand, Korea,and Hong Kong

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2000 Market share began to fall inFrance

2003 Wanted to change its governancepolicy to expand into new areas

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Industry Analysis

Carrefour

Since 2005, the market has grown 4.2%,

almost $949.3 billion 3 essential reasons why hypermarkets

stand out from typical supermarkets and

retail chains:1)Products2)Location3)Prices

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Global Issues

Diversity and cultures of new area

Government Regulations

Pressure on smaller companies

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Risks

Competition

Location

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Future Trends

Technology

Online shopping

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Strengths

Hypermarket

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Breakdown of consolidated netsales by store formatDecember 31, 2005

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Hypermarket's Advantages

Diverse products

Convenient location

Possibly low price

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Large Economic Scale

Great number of stores11,594 in Europe

835 in Americas471 in Asia5 in Africa

High speed of setting-up new stores

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Weaknesses

Produits libres

Low end products

Increased obligations of quality

Monopoly to suppliers

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Opportunities

Online stores Reduce capital expenditures Land costs

Labor costs Increase trade efficiency

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Global Expansion

Carrefour: 50% of its sales in theinternational checkout

Located in 29 countries

Wal-Mart: 16% of its sales outside ofAmericaLocated in 11 countries

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Threats

Severe working environmentunconcerned relationship between

employers and employees

Globalization

competition from big retailers as well aslocal stores

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Indirect Competition

Convenience Stores - generalmerchandise and various supermarket

items Shopping Centers - variety of items all in

one location

Grocery Stores - sell food items

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Direct Competition

Auchan - French grocery chain

E. Leclerc - cooperation of over 550 food retail

franchises Aldi - European discount chain

Ahold - largest grocery retailer in Amsterdam

Tesco - Britains largest retailer of grocery and

general merchandise Wal-Mart - world's number one retailer

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Recommendations

Open a Daycare inside Carrefour

Incorporate a fitness area into the store for

white-collar groups

Enter into more Mexican markets

Discover more sales promotions to attractcustomers.

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Conclusion