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CARREFOURFinding Retail Space In All The Right Places.
LOVELY PROFESSIONAL
UNIVERSITY MBA-Q1529
1
2
AGENDA
 Introduction
 History
 Growth/Expansion
 Failure
 SWOT Analysis
 Conclusion/Suggestions
3
INTRODUCTION
 Industry : - Multinational Retailer
 Headquarter : - Boulogne Billancourt, France
 Founded : - January 1,...
 First store opened in 1960.
 Largest retailer in Europe and Latin America, second largest in
worldwide by 2007.
 More ...
6
7
8
9
10
11
12
GROWTH
 Carrefour operated 218 hypermarket in France by 2006.
 Sells underperforming stores and move from countries offe...
 In 2006, sold its operations in South Korea and Slovakia while
expanding heavily in Poland.
 Announced plans in 2007 to...
15
FAILURE
 Carrefour has not always followed its location strategy and
deviation has influenced its failure in some markets...
 In U.K it did well with sales of food item but not on durables.
In Mexico, it met with established Wal-Mart.
In both H...
18
STRENGTHS
 Carrefour is largest hyper
chain market in terms of
size.
 More than 50% of sales
comes from France.
 Large ...
OPPORTUNITIES
 Joint ventures and acquisition
for more expansion.
 Reduce operating cost and
Improve sales performance.
...
Why would another company want
to partner with Carrefour?
 Carrefour brings to a partnership expertise on store layout
cl...
CONCLUSION/SUGGESTIONS
 It cannot become worlds largest retailer until or unless it
spreads its winds in the US and UK ma...
23
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Carrefour Presentation

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Carrefour Presentation

  1. 1. CARREFOURFinding Retail Space In All The Right Places. LOVELY PROFESSIONAL UNIVERSITY MBA-Q1529 1
  2. 2. 2
  3. 3. AGENDA  Introduction  History  Growth/Expansion  Failure  SWOT Analysis  Conclusion/Suggestions 3
  4. 4. INTRODUCTION  Industry : - Multinational Retailer  Headquarter : - Boulogne Billancourt, France  Founded : - January 1, 1958  Age : - 57 Years  Area Served : - World Wide  CEO : - George Plassat  Yield : - Cash & Carry, Warehouse Club, Discount Store, Hypermarket, Supermarket  Website : - www.carrefour.com 4
  5. 5.  First store opened in 1960.  Largest retailer in Europe and Latin America, second largest in worldwide by 2007.  More than 12500 stores and 456000 employees.  Stores depend on food for 60% of their sale and rest for non food items.  Derives 52% of its sales and 48% of its profits outside France.  Operated in about twice the number of countries as the world’s largest retailer Wal-Mart  Now fourth largest retailer. 5
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  13. 13. GROWTH  Carrefour operated 218 hypermarket in France by 2006.  Sells underperforming stores and move from countries offering less potential profits.  Decided to expand internationally.  First foreign entity, with partnership was to Belgium.  Its wholly owned foreign store was in Spain. 13
  14. 14.  In 2006, sold its operations in South Korea and Slovakia while expanding heavily in Poland.  Announced plans in 2007 to enter the Indian and Russian markets.  Principle factor guiding Carrefour's International expansion has been countries “economic evolution”.  Carrefour growth faced some obstacles in France.  As government have restricted new hypermarket permits to safe guard town center, protect small business. 14
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  16. 16. FAILURE  Carrefour has not always followed its location strategy and deviation has influenced its failure in some markets.  Expanded into U.S and U.K in mid 1980s and later pulled out of both markets.  Entered Mexican, Japanese, Korean, and Chilean market late.  U.S customers not wanted to spend time, it takes to shop in hypermarkets. 16
  17. 17.  In U.K it did well with sales of food item but not on durables. In Mexico, it met with established Wal-Mart. In both Hong Kong and Chile, unable to build enough store, needed to compete with existing competitors.  Partnered with Gigante, but lacked in sufficient resources to expand rapidly and later sold whole operation. In Japan, it established operation without partner and lasted only four year before selling out. 17
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  19. 19. STRENGTHS  Carrefour is largest hyper chain market in terms of size.  More than 50% of sales comes from France.  Large network of discount, grocery, convenience and cash and carry, hypermarkets. WEAKNESSES  Weak position in Asian and Middle East countries.  Weakness its own brand sales.  Taking too much time in opening new stores. 19
  20. 20. OPPORTUNITIES  Joint ventures and acquisition for more expansion.  Reduce operating cost and Improve sales performance.  Research in marketing area to understand the dynamics of different segment.  They can even mark their presence in e-commerce. THREATS  Wal-Mart low prices is the biggest threat for Carrefour.  New player entering into the retail industry.  Facing difficulty to understand the dynamics of countries.  Slow expansion outside the France may allow the competitors to snatch away the market share. 20
  21. 21. Why would another company want to partner with Carrefour?  Carrefour brings to a partnership expertise on store layout clout in dealing with global suppliers. Example “Most Awaited Month”.  Direct e-mail link with suppliers.  Ability to export unique bargain items from one country to another. 21
  22. 22. CONCLUSION/SUGGESTIONS  It cannot become worlds largest retailer until or unless it spreads its winds in the US and UK market.  May be expanding retail operations in too many countries and will not be able to build sufficient presence in each to gain necessary economics of scale.  This company must maintain its integrity in the market by continuing its progress with…  great services  extensive move in planting more companies and mergers throughout the world  providing products that are not only great quality but affordable pricing. 22
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