This document provides background information on the French international hypermarket chain Carrefour. It discusses Carrefour's history starting from its founding in the 1960s in France. It then expanded internationally throughout Europe, Asia, and the Americas. The document also describes Carrefour's industry as an oligopoly with hypermarkets standing out through diverse products, convenient locations, and lower prices. Carrefour faces both indirect competition from convenience stores and shopping centers, and direct competition from chains like Walmart, Leclerc, and Aldi. Key factors in Carrefour's success have been competing on low prices, effective promotions, and corporate strategies around construction costs and management. Ongoing challenges include existing and new competitors as well as

1. Carrefour

2. Agenda
 Background
 History
 Industry
 Competition
 Success Factors
 Challenges

3. Background
 A French international hypermarket chain.
 Headquartered in Levallois-Perret-France.
 1-Size, 2-revenue, 3-profits.
 11,000 stores.
 More than 30 countries and areas.
 Over 495,000 employees (2009).

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

5. History
Carrefour opens
its first
supermarket in
Annecy,
Haute-Savoie.

6. History
Carrefour
invent a new
store
concept:
the
Hypermarket

7. History
Carrefour
introduces
“produits libres”
which are
unbranded
products but
“just as good
and cheaper”

8. History
Carrefour
brand-name
products are
introduced.

9. History
Carrefour
creates
filiere quality
systems,
which
guarantee
product origin
and
traceability.

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

11. History
 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

12. Industry Analysis
 Oligopoly.
 growing Continually.
 3 essential reasons why hypermarkets
stand out from typical supermarkets and
retail chains:
 Products: Diverse.
 Location: more convenient.
 Prices: lower.

13. Competition
 Indirect:
 Convenience Stores - general merchandise and
various supermarket items.
 Shopping Canters - variety of items all in one
location.
 Grocery Stores - sell food items.

14. Direct Competition
 Wal-Mart - world's number one retailer.
 Leclerc - cooperation of over 550 food retail
franchises.
 Auchan - French grocery chain.
 Aldi - European discount chain.
 Ahold - largest grocery retailer in Amsterdam.
 Tesco - Britain’s largest retailer of grocery and
general merchandise.

15. Success Factors
 Competing low prices.
 Effective promotion system:
 taking full control of its end-to-end promotion
systems.
 in-store and outside promotions.
 loyalty cards…etc.
 Several corporate strategies such as :
 inexpensive construction.
 low-cost land acquisition: cheap lands near high
ways.
 decentralized management.

16. Challenges
 Existing and potential competitors.
 Global Marketing Challenges.
 New legislations:
 Example: Legal amendments, which came into
effect on January1-2006 under the Dutreil Law,
have updated the French Commerce Code to
redress the balance of power between
manufacturers and distributors, while attempting to
lower retail prices.

17. THANK YOU
Presented by:
Kenan Al Sayed
Anjad Qusaibaty
Muhannad Akkash
Abdel Rahim Abou Al Shamat