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 22 nd of the top Fortune 500 companies 11,000 stores 420,000 employees More than 30 countries and areas
History Fournier and Defforey founded Carrefour in France the first supermarket began in Annecy, Haute-Savoie the world's first hypermarket the first overseas hypermarket was built in Belgium
History hypermarket in Spain hypermarket in Brazil hypermarket in Argentina Carrefour owned 65 hypermarkets domestically first hypermarket in Asia, in Taiwan
History - Carrefour in America first hypermarket in Philadelphia, United States second hypermarket in New Jersey Carrefour closed two stores in America
History first hypermarkets in Italy and Turkey first hypermarkets in Mexico and Malaysia first hypermarket in China mainland 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 format December 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 libres Low end products Increased obligations of quality Monopoly to suppliers
Opportunities O nline 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 America Located 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