7/31/2019 Julie Carrefour S07 S2
1/26
Carrefour
Presented by:
Shirley Chen, Yi Wang,
Lindsey Milliken, and Julie Hoff
7/31/2019 Julie Carrefour S07 S2
2/26
Agenda
Introduction
History
Industry Analysis
Company Analysis
Competition Recommendations
7/31/2019 Julie Carrefour S07 S2
3/26
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
7/31/2019 Julie Carrefour S07 S2
4/26
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
7/31/2019 Julie Carrefour S07 S2
5/26
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
7/31/2019 Julie Carrefour S07 S2
6/26
History - Carrefour in America
1990- first hypermarket in Philadelphia,United States
1991- second hypermarket in New Jersey 1993- Carrefour closed two stores in
America
7/31/2019 Julie Carrefour S07 S2
7/26
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
7/31/2019 Julie Carrefour S07 S2
8/26
2000 Market share began to fall inFrance
2003 Wanted to change its governancepolicy to expand into new areas
7/31/2019 Julie Carrefour S07 S2
9/26
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
7/31/2019 Julie Carrefour S07 S2
10/26
Global Issues
Diversity and cultures of new area
Government Regulations
Pressure on smaller companies
7/31/2019 Julie Carrefour S07 S2
11/26
Risks
Competition
Location
7/31/2019 Julie Carrefour S07 S2
12/26
Future Trends
Technology
Online shopping
7/31/2019 Julie Carrefour S07 S2
13/26
Strengths
Hypermarket
7/31/2019 Julie Carrefour S07 S2
14/26
Breakdown of consolidated netsales by store formatDecember 31, 2005
7/31/2019 Julie Carrefour S07 S2
15/26
Hypermarket's Advantages
Diverse products
Convenient location
Possibly low price
7/31/2019 Julie Carrefour S07 S2
16/26
Large Economic Scale
Great number of stores11,594 in Europe
835 in Americas471 in Asia5 in Africa
High speed of setting-up new stores
7/31/2019 Julie Carrefour S07 S2
17/26
Weaknesses
Produits libres
Low end products
Increased obligations of quality
Monopoly to suppliers
7/31/2019 Julie Carrefour S07 S2
18/26
Opportunities
Online stores Reduce capital expenditures Land costs
Labor costs Increase trade efficiency
7/31/2019 Julie Carrefour S07 S2
19/26
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
7/31/2019 Julie Carrefour S07 S2
20/26
Threats
Severe working environmentunconcerned relationship between
employers and employees
Globalization
competition from big retailers as well aslocal stores
7/31/2019 Julie Carrefour S07 S2
21/26
Indirect Competition
Convenience Stores - generalmerchandise and various supermarket
items Shopping Centers - variety of items all in
one location
Grocery Stores - sell food items
7/31/2019 Julie Carrefour S07 S2
22/26
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
7/31/2019 Julie Carrefour S07 S2
23/26
7/31/2019 Julie Carrefour S07 S2
24/26
7/31/2019 Julie Carrefour S07 S2
25/26
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.
7/31/2019 Julie Carrefour S07 S2
26/26
Conclusion
Recommended