Carrefour is one of the world's largest food retailers that operates over 12,000 stores across 30 countries. In 2018, Carrefour launched a multi-year transformation plan focused on four key pillars: simplifying the organization, improving productivity, creating an omni-channel shopping experience, and increasing access to healthy foods. Early results indicate the plan is driving sales growth and accelerating profit improvements through cost reductions and investments in higher-growth areas like convenience stores and online shopping.

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Cases in Transformation
Carrefour Transformation Plan 2022
Brief Update

2. Snapshots in Transformation: Carrefour
Carrefour 2022 Transformation Plan launched in 2018
Source: Carrefour, JP Morgan, Morgan Stanley, REV Partners, Literature search
• Carrefour is one of the world’s largest food retailer by revenues (of €72bn)
⁻ Operates over twelve thousand stores in c.30 countries
⁻ Carrefour has 12,225 stores worldwide (as of FY19)
 ~5,300 are located in France
 ~5,000 in Europe (Spain, Italy, Belgium, Poland)
 ~1,000 in LatAm (Argentina and Brazil)
⁻ Hypermarkets account for 9% of its stores, Supermarkets 28% and Convenience 64%
⁻ The company’s main geographies are
 France (48% sales, 35% EBITDA; 52%of sales were generated in hypermarkets)
 Europe (29% sales, 35% EBITDA)
 LatAm (20% sales, 24% EBITDA)
⁻ Carrefour listed 17% of its Brazilian business Atacadao SA on Brazilian stock exchange (On 20 July 2017)
⁻ It commended ~17.5m of selling space predominantly in hypermarket/hyper cash format that represented ~72% of space,
followed by supermarkets (per 2019 data)
 Carrefour owns most of its selling space area of ~17.5m sqm; it owns 72% of hypermarket selling space and 45% of
supermarket selling space (per 2019 data)
• Carrefour 2022 Transformation Plan launched in 2018
• Key drivers included evolving competitive landscape, changing customer expectations and shifting food behaviors
• Aim to invest in higher growth channels (convenience, online) and products (organic)
• Plan to improve cost competitiveness

3. Deploy a simplified and open
organization
Snapshots in Transformation: Carrefour
Four key pillars of transformation
Source: Carrefour, JP Morgan, Morgan Stanley, REV Partners, Literature search
Gaining in productivity to reinforce
our attractiveness
Create an omni-channel universe of
reference
Making “eating better” accessible to
everyone
Transformation Plan 2022 - Four Macro Pillars / Themes

4. Snapshots in Transformation: Carrefour
Transformation Underway: Transformation at Carrefour focused on Growth, Cost Reduction and investing for the future
Source: Carrefour, JP Morgan, Morgan Stanley, REV Partners, Literature search
Improve In-Store
Proposition
Build Omni-Channel
Capability
Growth
Procurement
Cost Reduction
Capex &
Divestments
Digital Disposals
Price Actions
& Reductions
• Supermarkets
in France
• Hypermarkets
in Brazil
Expanded
product
offering
• €4.8bn target
by 2022 vs
€1.8bn in
2018
Locally
sourced &
Private Label
• Target 1/3
of sales by
2022
SKU
reductions
• 15% vs
2020 (-10%
by 1H20)
Convenience
• Target 3000
c-store
openings by
2022
• Open 200
additional
drive pick-up
points in
2018
E-commerce
• Reach sales
€4.2bn by
FY22 vs
€1bn at
FY18
• Digital
Partnerships
(Tencent,
Google etc)
Hypermarket
• Reduce size
to fit the
catchment
area
(reduction of
350k sqm
target by
2022
Overheads Supply Chain
Procurement
Savings
• 15% assortment /
inventory
reduction,
• Purchase pooling
with Tesco and
System U alliance
• Systematic
negotiations with
suppliers
Overhead Cost
reduction
• Merging 12 HQ
buildings into one
in Massy
Palaiseau–achieved
in FY18
• Voluntary
redundancy
involving 2400
employees in
France, 1000 in
Belgium and 1000
in Argentina.-
Closed in FY18
Supply Chain &
Logistics
• supply chain
optimization
• Rethink logistics
systems
Digital Investments
• Invest €2.8bn in
digital technology
over 2018-2022 to
Disposals
• €0.3bn
nonstrategic real
estate asset
disposals over
2H20 – FY22
• Initial
• €0.5bn disposal
plan in FY19
A B C

5. Snapshots in Transformation: Carrefour
Early Results: Transformation still underway; Solid execution of transformation program with improving profit trajectory
Source: Carrefour, JP Morgan, Morgan Stanley, REV Partners, Literature search
• Transformation leading to sales growth and
accelerating profit improvement
- Continued momentum on revenue improvement and
impetus from Latin American operations
⁻ EBITDA growth in 1H20 on 7% LFL sales growth
and 50bps reduction in selling & distribution
expenses (excluding D&A)
⁻ France: LFL sales rose 2% and EBITDAR +7%
(driven by cost savings and investments in
prices)
⁻ Europe: LFL sales rose 5% and EBITDAR +14%
driven by operating leverage and cost savings
⁻ Private label initiative paying off
⁻ Kantar France 'love' perception score for Carrefour has
improved
⁻ Stake sale in China and Cargo Property completed
Solid Execution of Transformation Program Carrefour Cumulative Cost Savings
M €
Carrefour continues to deliver on the Transformation Plan

6. ACKNOWLEDGEMENT, THANKS, TERMS & CONDITIONS
We are indebted and grateful to various companies and sources that have been cited in the document for their data and insights. This report is not meant to be a substitute for
professional advice, and must not be relied upon as such without explicit, written consent. No representation or warranty (express or implied) is given as to the accuracy or completeness
of information contained in this publication. REV Partners, or its employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of anyone
acting in reliance on the information contained in this publication or for any decision based on it. If you would like to discuss the report, please contact the author.
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