Carrefour

Chase KukuchkaQian Liu (Olivia)

Yang Wang (Doris)Fengliang Wu (Aaron)

Corporation Introduction

Carrefour is the French word for crossroads Based out of Levallois-Perret France Selling both groceries and nonfood items

including services as well as goods Originators of the Hypermarket First international retailer to enter the Asian

market

Corporate Profile

Worlds largest retail chain with over 15,000 stores worldwide employing around 495,000 employees in 2009

Worlds third largest retail chain in terms of profit and the second largest in terms of total revenue

Carrefour is a publically traded company with 3.52 billion shares

Ranked 25 in the Fortune Global 500 for 2009

Company History

Company was founded by Marcel Fournier and Dennis Defforey

Free service was the concept they chose for their new store

The first Carrefour opened in 1957 in the French city of Annecy

Beating the competition with a basement

opening

The Hypermarket

The first hypermarket was opened on the outskirts of Paris in 1963

Combination of a supermarket and a department store

Must have at least 150,000 square feet of floor space

35% of the floor space must be used to sell nonfood goods

Today Carrefour operates over 200 hypermarkets in France alone with over 1,200 worldwide

Five Types of Stores

Hypermarket Supermarket Department store Discount store Convenient store

SWOT Analysis

Strength Strong brand awareness Focus on competitive prices

Weakness Lack of a deep perception of the consumer

behavior Deterioration relationship with local suppliers

SWOT Analysis

Opportunity

Supply more types of stores in areas where it already has hypermarkets

EEU reveals a steady potential of sales for Carrefour

SWOT Analysis

Threat Legislation requires the food wholesalers to offer

the same prices to all the retailers promulgated by France government

Powerful retailers in E-commerce industry

Global Expansion & Challenges

0

1000

2000

3000

4000

5000

6000

7000

1392

2949

6475

4698

120

Figure 1 the Number of 5 Types of Stores

Hypermarkets

Supermarkets

Hard Discount

Convenient Stores

Cash&Carry

Overview 15,634 stores!

Global Expansion & ChallengesGlobal Comparison of Tesco, Wal-Mart, & Carrefour

WalmartCarrefour

Tesco

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

8500

15634

4813

40821

12061

8775

Countries

Store Number

Revenue/10 million

Global Expansion & ChallengesSecond priority: G4 countries

(Belgium, Italy, Spain, & France)

Overview First Priority: France

Third Priority: New merging countries

Global Expansion & Challenges

Sales Percentage

Europe

Asia

Latin America

69%

12%7.5%

Global Expansion & Challenges

Success Model of Carrefour

Vast demands

Bargaining Power

Low prices

Vast sales

Virtuous Cycle

Global Expansion & Challenges

Failures

Reason in the US: fierce competition Reason in Hong Kong: localized laws and

competition Reason in South Korea: consumer behavior

Founded Founder Headquarters Products Revenue Employees

CarrefourAnnecy, French 1957

Marcel Fournier Denis Defforey Jacques Defforey

Levallois-Perret, France

Discount, grocery and convenience stores, cash and carry, hypermarkets

US$119.85 billion (2009)

over 495,000 (2009)

Wal-MartRogers, Arkansas, U.S. (1962)

Sam Walton Bentonville, Arkansas, U.S.

Discount Stores, Supercenters, Neighborhood

US$408.21 billion (2009)

2,100,000 (2009)

TescoEast London(1919)

Jack Cohen Cheshunt, United Kingdom

Groceries, consumer goods, financial services, telecoms

US$100.29 billion (February 2010)

440,000 (2009)

Casino 1898Geoffroy Guichardin

Saint-Étienne, France

Discount, grocery and convenience stores, cash and carry, hypermarkets

US$42.91 billion (2009)

152,380 (2009)

Competitors

$26.59 billion

$197.00 billion

$34.27 billion

$7.44 billion Market Capital

Carrefour

Wal-Mart

Tesco

Casino

Industry Analysis

Retail Industry

9.53%

32.27%

6.94%

2.97%

Market Share

Carrefour

Wal-Mart

Tesco

Casino

Future Trend Reduce price and strengthen process efficiently E-commerce and online retailing(non-shop):

presents about 2.7% of total retail industry revenue

Small single-store and independent retailers are forced out of the markets

Product cycles get shorter

Industry Analysis

Industry Analysis

Global Issues

2007 Credit Crunch Government regulations Cross-cultural risk, country risk, currency risk

and commercial risk Food security

Recommendations

Short-term Recommendations

Giving Back to the Community Improved Employee Moral Using Products Made Locally

Recommendations

Long-term Recommendations

In-depth research before entry Invest more to build the brand recognition Enhance its perception of the market and the

customers’ demand for their products

Conclusion

Small profits but high volume strategy is selectively applicable.

Carrefour frequently failed during expansion, especially in developed countries.

The ability to collaboration is imperative. The final way to success is to establish a good

relationship with employees and outer entities.