2.  A French international hypermarket chain
 Headquartered in Levallois-Perret-France
 11,000 stores
 More than 32 countries and areas
 Over 495,000 employees (2009)
 Sales: 112.245 billion euro in 2010
 4 store formats
- Hypermarkets
- Supermarkets
- Convenience
- Cash&carry

3. The Carrefour
company is created
by:
- Marcel Fournier
- Denis Defforey
- Jacques Defforey

4. •Carrefour opens
its first
supermarket in
Annecy,
Haute-Savoie
• Promodes is
created by a
merger

5. Carrefour
invent a new
store
concept:
the
Hypermarket

6. •Carrefour
introduces
“produits libres” -
unbranded
products but
“just as good
and cheaper”
• Carrefour gets
listed on the
Paris stock
exchange

7. •Carrefour
brand-name
products are
introduced.
•Launches
Carrefour
insurance
service

8. •Carrefour creates
“filiere quality
systems” -
guarantees
product origin and
traceability
•Takes a
controlling stake
in Comptoires
Modernes
•Carrefour and
Promedes merge

9. Carrefour
group adopted
a new
governance
structure with
leading to a
more fluid and
effective
operation able
to respond with
greater speed.

10.  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

11. Lars Olofsson
CEO and Chairman of
Carrefour
Pierre-Jean SIVIGNON, Chief
Financial Officer
José Carlos
Noël PRIOUX, Thierry GARNIER, Eric LEGROS,
GONZALEZ-
Executive Director Executive Director Executive Director
HURTADO, Chief
France China and Taïwan Group Merchandise
Commercial Officer

12. Year Revenues Profit
2008 89 billion Euros 382 million Euros
2009 87.2 billion Euros 385 million Euros
2010 87 billion Euros 1.87 billion Euros

13.  Primarily a hypermarket, but also operates
supermarkets, hard discounts, convenience
stores
 No. 1 retailer in Europe and China in terms of
size
 Reputation of variety, freshness and low price

14.  Barriers to entry :
1) Product differentiation –All consumer goods under one roof
2) Economies of scale -Operates 10,378 stores in 29 countries
3) Switching Costs - Promotions, discounts, partnerships, credit
program increase switching costs for consumers, suppliers, and
partners alike
4) Access to Distribution Channels – Very difficult for new entrants to
get access to new channels
 Expected Retaliation - Vigorous retaliation can be expected when
the existing firm has a major stake in the industry, when it has
substantial resources, and when industry growth is slow or
constrained

15.  Supplier groups are less concentrated
 Many substitutes available to the firm
 Retail giants important for supplier groups
 Minimum threat of forward integration from
suppliers

16.  Buyer’s are very important to the retail
industry
 But no single buyer purchases enough to
impact the industry
 Important to know buyer’s taste and
preferences
 Special promotions and discount decrease
buyer’s power

17.  This depends on region or country of
operation
 Generally low – promotion and services
increases switching costs – tailoring to local
needs
 Culture dependent – Mom and Pop store
more popular in Asian countries

18.  Numerous or equally balanced players
 Rapid Industry Growth
 Storage Costs and Fixed Costs
 High Strategic Stakes
 High Exit Barriers

19. A hit with customers:
 One-stop shopping
 Extremely low prices
 Full range of choices
 High quality of products
From a business perspective:
 Seamless capture of international markets
 Resource integration
 High level of local sourcing

20.  Hypermarket – Less cost, more variety of
products, low to mid level quality
 Supermarket – Low cost, one stop shop for
household’s needs
 Hard Discounts – Lowest cost, products with
high shelf life and bulk buying
 Free Shuttle Services – Differentiation,
increasing the reach of products
 Child Play Areas, Home Delivery, Cultural
Center, Free Credit, Themed Corners

21.  Value Creating Diversification
◦ Economies of scope:
 Sharing Activities
 Transferring Core Competencies
 Market Power – Vertical Integration
 Financial Economies – Efficient Internal Capital Market Allocation
 Value Neutral Diversification – Low performance, Uncertain Cash
Flow, Synergy
 International Level Corporate Strategy
◦ Transnational Strategy – Global efficiency and local
responsiveness. Combination of multi-domestic and global
strategy.
◦ Entry Mode – Initially Strategic Alliance, later on wholly owned
subsidiaries

22. 1) Largest hypermarket chain in 1) High operating expenses
terms of size
2) Weak positioning in Asia and
2) Second highest revenues middle east
3) Joint ventures in various 3) Expansion plans taking too
countries much time
4) Strong private label 4) Poor E-commerce performance
SWOT
1) Walmart’s low prices biggest
1) Joint ventures and acquisition threat
for more expansion
2) New players/ Local players in
2)Discount stores development the industry
3) Improve sale performance 3) Less knowledge of Asian
countries
4) R&D in marketing
4) Slow expansion outside France

23.  In China
◦ Govt. has stopped preferential treatment
◦ Rental prices high in Tier I cities
◦ Expansion plans halted
 In Europe
◦ Fall in operating profits
◦ Non food spending down by 10%
◦ Overall sales down by 4.4%

24.  Continue the practices that have been
successful
 Leverage knowledge of international market
and expand into emerging economies
 Find innovative ways to improve products and
services
 Be vigilant about threats to its operations