INTRODUCTION:

The first Carrefour store opened on 3 June 1957, in suburban Annecy near a

crossroads (carrefour in French). The group was created by Marcel Fournier, Denis

Defforey and Jacques Defforey and grew into a chain from this first sales outlet. In 1999

it merged with Promodès, known as Continent, one of its major competitors in the French

market.

Marcel Fournier, Denis Defforey and Jacques Defforey had attended several

seminars in the United States led by "The Pope of modern distribution" Bernardo

Trujillo, who influenced other famous French executives like Édouard Leclerc

(E.Leclerc), Gérard Mulliez (Auchan), Paul Dubrule (Accor), and Gérard Pélisson

(Accor). Their slogan was "No parking, no business."

The Carrefour group pioneered the concept of a hypermarket a large supermarket

and a department store under the same roof. They opened their first hypermarket 15 June

1963 in Sainte-Geneviève-des-Bois, near Paris in France.

In April 1976, Carrefour launched a private label Products libres (free products -- libre

meaning free in the sense of liberty as opposed to gratis) line of fifty foodstuffs,

including oil, biscuits, milk, and pasta, sold in unbranded white packages at substantially

lower prices.

Majid Al Futtaim Group LLC.

Established in 1992, Majid Al Futtaim Group has successfully brought the

concepts of regional shopping malls and hypermarkets to the region. The vision of the

Founder and President of the Majid Al Futtaim Group, Mr Majid Al Futtaim, has changed

the face of shopping, entertainment and leisure in the Middle East and North Africa

region.

Majid Al Futtaim, the Founder and President of the Majid Al Futtaim Group has

successfully brought the concepts of regional shopping malls and hypermarkets to the

region. His pioneering vision has changed the face of shopping, entertainment and leisure

in the Middle East and North Africa (MENA).

Majid Al Futtaim opened his first shopping mall in 1995 and has since created a business

of international significance. Over the past decade the Group has taken his

groundbreaking concepts into other major cities in the United Arab Emirates and

throughout the Middle East and North Africa including; Oman, Qatar, Saudi Arabia,

Bahrain, Egypt, and Lebanon.

The Group consists of a number of core businesses that complement one another, yet are

separately managed. This provides maximum flexibility and potential, enabling the

operating divisions to seize their own opportunities yet work together on major projects.

HISTORY & Milestone:

1992 MAF Investments LLC. is established with its headquarters in Dubai

1995 Promodes (Carrefour) signs a joint venture agreement with MAF Investments LLC

1995 Deira City Centre opens in November along with the first hypermarket and Magic Planet in the Middle East

1998 In March, Sofitel City Centre Hotel and Residence opens

1998 Ajman City Centre opens in December

1999 Cinestar Cinemas opens in Ajman City Centre

2000 Cinestar Cinemas opens in Deira City Centre (11 screen multiplex)

2000 In January, Carrefour opens on Airport Road in Abu Dhabi.

2000 In September, Carrefour opens in Ras Al Khaimah

2000 In November, Carrefour opens in Doha City Centre, Qatar.

2001 In March, Carrefour opens in Marina Mall, Abu Dhabi

2001 September- a joint venture with Dalkia International to create MAF Dalkia, a new energy and facilities management company to service the Middle East

2001 In April Carrefour opens in Al Jimi Centre,  Al Ain

2001 In September, Carrefour opens in Sharjah City Centre along with Magic Planet

2001 In October, Carrefour opens in Muscat City Centre

2002 In December, the first City Centre in Egypt opens in Maadi

2002 Carrefour Shindaga opens in the prime commercial section of Dubai

2003 In March, Alexandria City Centre opens in Egypt

2003 Souk al Nakheel which was later renamed ‘Mall of the Emirates’ to reflect planned expansion was announced

2003 Construction of Mall of the Emirates commences in October

2004 In November, Carrefour opens in Al Khaima Mall in Riyadh

2005 Opening of Carrefour in Dandy Mall in Cairo, Egypt (July)

2005 Opening of Carrefour in Granada Centre in Riyadh, Saudi Arabia (August)

2005 Opening of Carrefour in Century Mall in Dubai, UAE (August)

2005 September - the opening of Mall of the Emirates

2005 September- the opening of Carrefour in Mall of the Emirates

2005 In October, Ski Dubai, the first indoor Ski resort in the Middle East opened in   Mall of the Emirates

2005 November- the opening of Carrefour in Le Mall Riyadh KSA

2006 MAF Fashion signs agreement to exclusively distribute Liz Claiborne brands across the Middle East

2006 Opening of Kempinski Hotel

2006 Dubai Community Theatre and Arts Centre opens in Mall of the Emirates

2007 Carrefour enters Kuwait

2007 Carrefour opens new stores in Riyadh and Jeddah

2007 MAF Dalkia was awarded a 2 year facilities management services contract by Baker Hughes, the worldwide provider of oil and natural gas industry products and services

2007 Majid Al Futtaim Hospitality is in the advanced stages of completing 2 hotels in Bahrain, 2 hotels in Deira City Centre, 2 hotels in Barsha and one hotel in Mall of the Emirates

2007Introducing the Janes Norman brand for the first time in the Middle East by MAF Fashion

2007 Sell out in The Wave, Muscat’s new luxury apartments and waterside

villas. All properties released were sold out in a few hours

2008 Bahrain City Centre opens complete with Carrefour and Magic Planet

2008 Qurum City Centre opens

2008 2 new hotels – an Ibis and a Novotel - open in Port Saeed, Dubai

2008 Carrefour opens stores in Saudi Arabia (x2), Qatar, Oman, Egypt and Bahrain

2008MAF Dalkia opens first overseas office in Bahrain

2008 Mall of the Emirates expansion announced

2008NAJM credit card launched by Majid Al Futtaim Ventures in association with JCB Finance

2008 Majid Al Futtaim Asset Management established

Vision & Mission:

The Group was formed with an objective of putting in place a supervisory tier for the

operating companies that would assist with their development. The four major operating

subsidaries include: Majid Al Futtaim Properties, Majid Al Futtaim Trust, Majid Al

Futtaim Retail and Majid Al Futtaim Ventures.

Majid Al Futtaim Group is the region's most prominent developer of large

consumer focused enterprises

Majid Al Futtaim Group is an integral part of the fulfilment of the economic

vision of the UAE

Majid Al Futtaim Group applies its market knowledge, accumulated expertise and

proven track record to create success and increase the pace of its expansion

Majid Al Futtaim Group is characterised by stability, financial power and driven

by a talented and empowered team.

To create sustainable shareholder value by developing successful enterprises and real

estate projects in the Middle East - North Africa Region and managing them in

accordance with best international practice

Core Essence:

To lead by example; to be international visionaries; and create solutions.

Corporate Values:

To apply the highest ethical standards in everything we do; be honest, open and

transparent; remain ambitious; and recruit, train and empower talented people.

Principles:

To build our business on trust and integrity, and to be the employer of choice in

the markets in which we operate.

To explore fully, and implement, ways in which to limit environmental impact

and conserve energy in the design, construction and the operations of our various

businesses.

Hierarchy of management:

President Majid Al Futtaim

Chairman Sir Michael Rake 

Chief Executive Officer Mr. Iyad Malas

Board Members Sir Michael Rake 

Mr. Waldemar Schmidt

Mr. Tarek Ben Halim

Mr. Richard North

Dr. Fahad Almubarak

Mr. Paul Manduca

Mr. Trevor Coates

Mr. Philip Yea

Dr. Khalid Alkhazraji 

Management Mr. Iyad Malas Chief Executive Officer

Mr. Ahmed Bin Brek Deputy Chief Executive Officer

Management approach:

Segregation:-

We have observed while visiting hyper star that each an every product sorted out in

a proper way. Only useable item are available on the shelves and damaged and expired

products are replaced with fresh products and customer can easily access the product

which he looks for.

Arrangement:-

Every thing is placed in its place in proper way. Sign boards give you direction that

things are available where. We also find out floor painting to utilize the space both there

inside and outside in parking area. Customer can easily follow the directions to reach the

desired location.

The trellis is arranged so that it can easily get able by the customers and the workers as

well.

All the things are kept arrange are easy to maintain and to manage the stock and also

make work efficient for the employee and the customer it also save the time.

Neatness:-

The flour is absolutely clean this makes it easy to know what goes where and have

confidence that everything is where it should be. The key point is that maintaining

cleanliness should be part of the daily work - not an occasional activity initiated when

things get too messy.

STANDARDIZE:

They have set standards for segregation and neatness to recheck whether they

are working well or not.

SUSTAIN:

They train their employee after training need assessment and motivate them by

providing incentives. They have set cameras all over the hyper star.

COMPETITORS of hyper star:

Major competitors:

1- Macro

2- Metro

Medium Competitors:

1- HKB (haji karim bakhs)

2- Al-fatah store

3- Rahat

HYPERSTAR V/S. METRO , MACRO

- Backed by world’s greatest stores chain Carrefour. Operating in every continent of

world with Carrefour, Hypermart and Hyperstar brands.

- Pakistan’s Largest Shopping Place soon to be open in Karachi. You will get everything.

- No Shopping Limit No Membership Required. Buy Even a Candy.

- Prices are higher than Makro but cheaper than Metro (In most cases)

- Located at Fortress, an easy access to it as compared to Metro

- You can find lots of imported items there, i expect soon they will introduce their in-

house Carrefour products.

- Fastest Checkout counters as compared to Makro and Metro.

- You will find a huge crowd of people at Hypermart on weekends and less people out of

them will be there actually for shopping.

- No Minimum Quantity limits on most of the items

- Large number of promotions running than Makro and Metro.

It is good that such big groups like Makro, Metro and now Carrefour is taking interest in

doing business with Pakistan. I’ve been to Hyperstar (Carrefour group’s store) yesterday

and notice the following differences from previous two. I’ve given the differences below

from Hyperstar perspective.

Retailers not Wholesalers:

Makro and Metro both are wholesalers where as this is the first retail store at this big

scale in Lahore. There is a certain minimum shopping limit in first two stores, like Model

Town Makro has a minimum shopping limit of Rs. 500/- where as in Hyperstar you could

even buy one drinking water bottle. Prices of course vary; in Metro you could have 1.5

liter water bottle of Nestle for nearly Rs. 20/- (but you are bound to buy a whole pack of

6 bottles) on the other hand Hyperstar is selling a single bottle at retail price i.e. Rs. 28/-

You could buy single piece of goods rather than packets.

Double Storey:

First thing I notice when I enter into the shopping area that it is very small as compare to

other two but when I was leaving, I get to know that it is double storey. I’ve been used to

travel long at same floor like we do in Metro and Makro. Now I’ve to go upstairs as well,

Oh here is the sports section. Hyperstar’s Upper storey has electronics, sports, books,

perfumes, cosmetics, garments and toys section, where lower storey has food and daily

consuming goods. It has entry and exits from both stories upper or lower which directly

takes you to the parking area.

No Cafe Inside:

When I reach there I was dead thirsty, I thought to get something inside the

Hyperstar’s cafe as we have in Metro and Makro but I was disappointed not to see eating

area inside it. I took the drinking water bottle, came out to drink it, then they sealed the

bottle in shopping bag if I’ve to carry it. Otherwise they have well bakery section which

has all those stuff needed to have in a cafe.

I was amazed to see they are selling ready made food like legumes. I’ve seen cooked

Mash daal for Rs. 135/per kg. Am I suppose to take it for Rs. 20/- for one person?

Less Space to Display Products:

They have treadmills standing in packed position but outside of their cartons. Electronics

section was pretty much crowded and it was hard to find space there. They have given

less space to that section specially. On the other hand I’ve always experience a free space

in both Metro and Makro, they have plenty of free space.

Hyperstar has also much space available compare to any other store in Lahore, but

comparatively less than other two I’m comparing with right now.

Location:

They are located in a ideal market which is already running good: Fortress Stadium.

Where as Metro build there store at the boundaries of Lahore; one at Thokar and other

near Airport. But Makro has changed their policy to build their second store at Model

Town link road after building their first mart near Ravi river (other boundary of Lahore).

Quality Shopping:

Well whether they compete with each other or facilitate different target market,

we are getting good quality goods, especially good quality food from there.

Key points of hyperstar:

No of Holiday: There is no holiday in a hyperstar.

Tour in working day: Almost 1000 People visit every day.

Tour in weekend: Large no of people visit every day.

Tour in events: There are large no of people visit any event & full space covered of hipper star at the event and almost full of packing space.

Total Department ho hyperstar: H.H.H Ten tile L.H.H Pharmacy Marketing

Main sponsor of hyperstar: Nivia Company is the main sponsor of the hypper star. Which is sell large no of products?

Highest sale in hyperstar: The most Products sell in this company (Acer) laptop

Department sale:

Departmental sale:1) H.H.H (Height how holds): 1&3 products are sale in everyday but in the weekend 5 to 6 products are sale.

2) L.H.H (Low house hold): Every product almost sells 100 to 150 in daily basic and in the event 250 to 300 product is sale to each brand.

Textile: 5 to 6 dress sell in the working days but weekend sell increased 15 to 20 dress.

Pharmacy: All types’ medicine is available there but total sale is un. Non. It ups and down daily basics.

Total ATM: ATM HBL ALFLA BANK

Hyperstar gives the opportunities to the customers through providing complaints and

suggestion forms. So that customer can easily register our complaints and gives their

opinions and recommendation and also give the feedback form for the customers.

BENEFITS:

By applying 5s they can facilitate customer and they can buy easily. They also

have utilized space very well because of floor painting. They bear low inventory

cost and there are lesser rejections.

SUGGESSTIONS& CONCLUSION:

They have managed their system very well and working efficiently and we

conclude that by applying 5s they are maintain quality very well and making their

customer satisfying.