Intro about the company, operations in India - reasons of failure. Failure in other countries. Data as per 2017.

1. GROUP 6
Anusha Kurakula (16010121811)
Govind Narayan Roy (16010121824)
Manoj Sivadasan (16010121843)
Rahul Prabhu (16010121852)
Viskash Kumar (16010121899)

2. CARREFOUR:THE MULTINATIONAL
• French, multinational retailer
• Headquarters: Boulogne, Billancourt, France
• One of the first to open a hypermarket – supermarket and
departmental store under same roof.

3. HISTORY
• In 1950s, the retail business in France were family owned and there
were very few stores with free services and all of them charged heavy
prices.
• Realizing the growing popularity of the concept of free service,
Carrefour was founded by Marcel Fournier and Louis Defforey in 1959
at Annecy, France.
• It was named Carrefour (Crossroads) as the store was located at the
convergence of 5 roads.
• By 1960s, Carrefour expanded into various regions in France, alongside
launching a campaign to familiarize customers the concept of
supermarkets

4. • Moved their stores to sub-urban areas to avoid congestion at prime
locations of the city and to provide parking space for the cars.
• Fournier and Defforey took a trip to the US to study and observe the
retail practices and adopt relevant practices in France.
• In 1963, started a 2500 sq feet store and that facilitated parking for
400 cars.
• The concept of hypermarket found instant acceptance among
younger people, suburban dwellers and price conscious consumers.

5. • In 1965 it was split into divisions, one headed by Defforey and
Fournier's son (Grands Magasins Carrefour) and the other by Fournier
and Denis (Carrefour Supermarché).
• From 1966, they expanded through out France .
• Opened up 10,000 sq. feet store in Lyon and 20,000 sq. feet store in
Vitrolles .
• Opened up an office in Paris to coordinate all the operations .
• In 1971 they had 16 wholly owned stores , equity in 5 stores and 7
frachise model stores .

6. GOING GLOBAL
• Carrefour decided to expand globally because in 1963 a law was
passed to restrict the growth of large stores.
• The first expansion was to Belgium by partnership with a local
partner, Delhaize Freres-Le-Lion.
• In 1975, they expanded outside Europe by entering Brazil.
• They were careful in customizing their operations to the preferences
of the local customers.
• In 1978, started hard discount stores under banner Ed

7. • By 1985, they were operating in 10 countries and had launched private
labels which were priced 10-20 percent less than other brands .
• In 1991, they have opened store in Philadelphia (USA) which was of
330,000 sq. Feet area.
• In mid 1990s, special law was passed in France restricting food wholesalers
from giving any extra discounts to hypermarkets. They were to charge an
equal price from all retailers.
• By then they had expanded globally. By the end of 1990s they opened up
30 stores globally

9. LOCALIZATION
• Biggest strength of Carrefour in the countries it operates -from local tie-ups to hiring local executives to
run stores, local sourcing to merchandising
• Designed stores and launched private labels to suit Chinese consumers and each store ran independently
SUPPLY CHAIN STRATEGIES
• Mostly uses 'direct procurement strategy' in the markets it operates.
• Currently works with about 90 suppliers/ farmers in Uttar Pradesh, Andhra Pradesh, Delhi, Punjab and
Haryana; directly dealing with the farmers for quality production and effective supply chain
management
• Keeps its supply chain very economical and flexible - trucks to bikes depending on the need & cost
• Integrated Composite Application Network (ICAN) software to integrate its stores, distribution centres
and supply chain partners in various countries
STORE OPENINGS
• Decentralisation is another key strategy of Carrefour
• Set up regional offices in each of the Chinese provinces and that office took care of shops in that particular
region
• Adapting stores to local needs
GLOBAL STRATEGY OF CARREFOUR

10. CARREFOUR’S GLOBAL PRESENCE

11. GLOBAL OPERATIONS
EUROPE
-Armenia
-Belgium
-France
-Italy
-Poland
-Romania
-Slovakia
-Spain
SOUTH
AMERICA
-Argentina
- Brazil
-Dominican
Republic
ASIA
-China
-Indonesia
-Taiwan
AFRICA
-Algeria
-Egypt
-Ivory Coast
-Kenya
-Tunisia
-Morocco
-Turkey
MIDDLE EAST
-Bahrain
-Kuwait
-Qatar
-Saudi Arabia
-Oman
-Jordan
-Iran
-Iraq
-Lebanon
-UAE

12. CARREFOUR TODAY

13. VARIOUS BANNERS

14. ENTRY INTO INDIA - 2010
• The store, Carrefour Wholesale Cash&Carry - located in the
Seelampur area, east of New Delhi in the Shahadara neighbourhood
• The store’s merchandise area of about 5,200 square metres, offers
more than 10,000 stock keeping units in the food and non-food
products to independent retailers, businessmen, institutions and local
restaurants.
• The Paris-based retailer planned to enter the country’s multi-brand
retailing through a joint venture with India’s largest retail
group, Future Group.

15. • In 2014, the country’s current regulations don’t allow foreign direct
investment (FDI) in multi-brand retail to safeguard the interests of
traditional general (kirana) stores.
• The current policy of the Indian government only allows foreign
groups to develop cash-and-carry format.
• The Indian government allows 51 per cent FDI in single-brand retail
and 100 per cent in the cash-and-carry segment, but none in multi-
brand retail.
• As a result, Carrefour shut their 5 wholesale cash and carry stores and
therefore exiting from an underperforming market.

16. CARREFOUR’S WITHDRAWALS
EUROPE
-Austria
-Portugal
-Czech
Republic
-Greece
-Switzerland
-UK
AMERICA
-Colombia
-Mexico
-USA
ASIA
-South Korea
-Singapore
-Malaysia
-Thailand
-Japan
-India (C&C)
-Hong Kong
-Russia

17. CARREFOUR’S COMPETITORS
• Wal-Mart Stores, Inc.
• Costco Wholesale Corporation
• Kroger Company
• Walgreens Co.
• Tesco PLC
• Metro Group AG
• The Home Depot, Inc.
• Target Corporation
• Lidl Stiftung & Co. KG
• Aldi Einkauf GmbH & Co. oHG
• Groupe Auchan SA
• Woolworths Limited
• Aeon Ltd.
• CVS Caremark Corp.
• Amazon.com, Inc.

18. REASONS FOR FAILURE
• Failure to satisfy local demands.
• Absence of local partner.
• Store layout and ambience.
• Products and services.
• HR practices.
• Problems in SCM.
• Government Policies.