Carrefour introduced a 'green' store concept in China, starting with its first store in Beijing in 1995, combining Western retail practices with local preferences for freshness. The initiative yielded a 30% reduction in energy consumption and aimed to address operational challenges and sustainability while achieving significant sales growth. Recommendations include applying practical green practices, obtaining LEED certification, and improving supplier relationships to enhance efficiency and trust among consumers.

1. Carrefour China,
…building a greener store
Sonia Grover
PGDM1

2. Synopsis
• New concept of “green” store was introduced
• Carrefour first green store opening in Beijing, in 1995
• Company operated 73 hypermarkets in 29 Chinese cities
• Supermarkets in and around luxury hotels for rapid growth
• Carrefour’s Aim: mix western store with local preference for freshness
• Its turnover in china was US$2 billion, in 2005,making it 5th largest market

3. “Green Store”
• Store built and operated with the most advanced environmental technology
• Use of non-renewable resources was prohibited
• For getting potential benefits of energy conservation
• Maintaining sustainability, causing decrease in cost and increase in 35% sales

4. • High Electricity consumption
• Operational cost, AC & Refrigerator is 15-20% of total budget(later, 30% of
total energy consumption)
• Lack of strategy for green project
• Managing equipment suppliers escalates cost
 working with local suppliers
Importing complex equipment
Problem definition

5. • Climate problem
• Frequent Short supply of electricity
• Genetically engineered rice not approved for human consumption, in central
China
• Lack of knowledge of local supply and material availability
• Risk of the level in LEED certification, which could affect positive public
relations
…Continued

6. Situational Analysis
• Aim was to mix western store with local preference for freshness
• 45000 visitors each day of larger stores
• Sales of 20k-25k transactions
• Operational, maintenance problem came into the frame
• Reducing maintenance and operating costs by 12%
• Standardized the equipment, and make importing process not-acceptable if it
gets delayed or not standardized

7. • Greenpeace demanded to stop the sale at a Carrefour hypermarket in central
china
• “Green” saved its 30% of energy consumption
• Climate problem

8. Recommendations
• Applying “Green” concept in practices, rather than making all the processes
“green”
• Following all the Legitimate aspects
• Getting certified by LEED, so as to build trust among consumers
• Contact with Electronic savings companies to avoid electricity issue, like GE
• Use of 3Rs
• Making all the stores “green”, then focusing on New stores
• Strategizing all the processes, to avoid further complications

9. Thank you