Carrefour

Agenda

Background History Industry Competition Success Factors Challenges

Background

A French international hypermarket chain. Headquartered in Levallois-Perret-France. 1-Size, 2-revenue, 3-profits. 11,000 stores. More than 30 countries and areas. Over 495,000 employees (2009).

History

The Carrefour company is created

by:

- Marcel Fournier

- Denis Defforey

- Jacques Defforey

History

Carrefour opens its first

supermarket in Annecy,

Haute-Savoie.

History

Carrefour invent a new

store concept:

the Hypermarket

History

Carrefour introduces

“produits libres” which are unbranded

products but “just as good and cheaper”

History

Carrefour brand-name products are introduced.

History

Carrefour creates

filiere quality systems,

which guarantee

product origin and

traceability.

History

Carrefour group adopted

a new governance

structure with leading to a

more fluid and effective

operation able to respond with greater speed.

History

1969- the first overseas hypermarket was built in Belgium. 1973- hypermarket in Spain 1975- hypermarket in Brazil 1982- hypermarket in Argentina 1989- first hypermarket in Asia, in Taiwan 1990- first hypermarket in Philadelphia,United States 1991- second hypermarket in New Jersey 1993- first hypermarkets in Italy and Turkey. 1994- first hypermarkets in Mexico and Malaysia 1995- first hypermarket in China mainland 1996- hypermarkets in Thailand, Korea, and Hong Kong

Industry Analysis

Oligopoly. growing Continually. 3 essential reasons why hypermarkets

stand out from typical supermarkets and retail chains:

Products: Diverse. Location: more convenient. Prices: lower.

Competition

Indirect: Convenience Stores - general merchandise and

various supermarket items. Shopping Canters - variety of items all in one

location. Grocery Stores - sell food items.

Direct Competition

Wal-Mart - world's number one retailer. Leclerc - cooperation of over 550 food retail

franchises. Auchan - French grocery chain. Aldi - European discount chain. Ahold - largest grocery retailer in Amsterdam. Tesco - Britain’s largest retailer of grocery and

general merchandise.

Success Factors

Competing low prices. Effective promotion system:

taking full control of its end-to-end promotion systems.

in-store and outside promotions. loyalty cards…etc.

Several corporate strategies such as : inexpensive construction. low-cost land acquisition: cheap lands near high

ways. decentralized management.

Challenges

Existing and potential competitors. Global Marketing Challenges. New legislations:

Example: Legal amendments, which came into effect on January1-2006 under the Dutreil Law, have updated the French Commerce Code to redress the balance of power between manufacturers and distributors, while attempting to lower retail prices.

THANK YOU

Presented by:

Kenan Al Sayed

Anjad Qusaibaty

Muhannad Akkash

Abdel Rahim Abou Al Shamat