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,
Website : - www.carrefour.com
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
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
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
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
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.
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
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.
Carrefour is largest hyper
chain market in terms of
More than 50% of sales
comes from France.
Large network of
convenience and cash and
Weak position in Asian and
Middle East countries.
Weakness its own brand
Taking too much time in
opening new stores.
Joint ventures and acquisition
for more expansion.
Reduce operating cost and
Improve sales performance.
Research in marketing area to
understand the dynamics of
They can even mark their
presence in e-commerce.
Wal-Mart low prices is the
biggest threat for Carrefour.
New player entering into the
Facing difficulty to
understand the dynamics of
Slow expansion outside the
France may allow the
competitors to snatch away
the market share. 20
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
Direct e-mail link with suppliers.
Ability to export unique bargain items from one country to
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…
extensive move in planting more companies and mergers
throughout the world
providing products that are not only great quality but
affordable pricing. 22