Carrefour

Presented by:

Shirley Chen, Yi Wang,

Lindsey Milliken, and Julie Hoff

Agenda

Introduction History Industry Analysis Company Analysis Competition Recommendations

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

History

1959- Fournier and Defforey founded Carrefour in France

1960- the first supermarket began in Annecy, Haute-Savoie

1963- the world's first hypermarket 1969- the first overseas hypermarket was

built in Belgium

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

History - Carrefour in America

1990- first hypermarket in Philadelphia, United States

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

America

History

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

2000 – Market share began to fall in France

2003 – Wanted to change its governance policy to expand into new

areas

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)Products 2)Location 3)Prices

Global Issues

Diversity and cultures of new area

Government Regulations

Pressure on smaller companies

Risks

Competition

Location

Future Trends

Technology

Online shopping

Strengths

Hypermarket

Breakdown of consolidated net sales by store formatDecember 31, 2005

Hypermarket's Advantages

Diverse products

Convenient location

Possibly low price

Large Economic Scale

Great number of stores 11,594 in Europe 835 in Americas 471 in Asia 5 in Africa

High speed of setting-up new stores

Weaknesses

Produits libresLow end productsIncreased obligations of quality

Monopoly to suppliers

OpportunitiesOnline stores

Reduce capital expenditures Land costs Labor costs

Increase trade efficiency

Global Expansion

Carrefour: 50% of its sales in the international checkout Located in 29 countries

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

Threats

Severe working environment unconcerned relationship between employers and employees

Globalization competition from big retailers as well as local stores

Indirect Competition

Convenience Stores - general merchandise and various supermarket items

Shopping Centers - variety of items all in one location

Grocery Stores - sell food items

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 - Britain’s largest retailer of grocery and

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

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 attract

customers.

Conclusion