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Managing Carrefour – Understanding the hypermarket retail business
Magesh Srinivasan
Contents
 Objective                Promotion Calendar
 Hypermarket Definition   Commercial Terms
 Carrefour Global
 C    f    Gl b l         In St
                          I Store Promotion
                                   P      ti
 Carrefour UAE            POS
 Carrefour Store Sizes    After Sales Service
 Store Layout             Listing Structure
 Business Model           Back End Rebate
 Sales Split              Conclusion




                                        Magesh Srinivasan
Objective
Objecti e

Provide an overview on hypermarket retail

 business with Carrefour as an example




                                 Magesh Srinivasan
Hypermarket
H permarket Defined

 Hypermarket = Supermkt + Dept.


 Store


 1931,Concept from US



 2007 sales = 72 Billion Euro


                                  Source: Middle East Grocer, June 2006

                                                            Magesh Srinivasan
Carrefour
Carrefo r Global
                        1,163 Hypermarkets
                        14,991 stores (including
                        franchisees & partners)




                   Source: Middle East Grocer, June 2006

                                                  Magesh Srinivasan
Carrefour
     Carrefo r Global
                                                                     Franchisee-partner countries
        Europe                 Total   No. of Franchisees            1.    Algeria
                                                                           Al i                      1
                                                                     2.    Saudi Arabia              7
1.      France                 218     24                            3.    French overseas
2.      Belgium                56
3.      Spain                  161     6
                                                                           departments & territories 11
4.      Greece and Cyprus      28                                    4.    Egypt                     3
5.      Italy 
           l                   59      1                             5.    United Arab Emirates      10
6.      Poland                 72
                                                                     6.    Japan                     7
7.      Romania                11
8.      Turkey                 19                                    7.    Jordan                    1
        Total Europe           624     31                            8.    Kuwait                    1
                                                                     9.    Oman                      1
                                                                     10.   Qatar                     2
                                                                     11.   Dominican Republic        1
                                            Asia             Total   12.   Tunisia                   1
                                            1.   China       112
America                        Total        2.   Indonesia   37            Total                   46
                                            3.   Malaysia
                                                      y      12
1.Argentina                    59           4.   Singapore   2
2.Brazil                       150          5.   Taiwan      48
                                            6.   Thailand    27
3.Colombia                     46
Total America                   255         Total Asia 238




                                                                                         Magesh Srinivasan
2007 Gro p B siness Res lts
     Group Business Results




                         Magesh Srinivasan
2007 Gro p B siness Res lts
     Group Business Results




                         Magesh Srinivasan
Carrefour
Carrefo r in UAE - Profile

 Start 1995 – Deira City Centre, Dubai


 Local Partner : MAF Hypermarket LLC


 10 Stores


 Headoffice : MAF Towers, Dubai


                                         Magesh Srinivasan
Locations




            MAF Carrefour plans to more than double the
            number of stores in the Middle East region by
            2012. The company already employs over 2,500
            staff in 30 stores in 11 countries in the Middle
            East region and serves 10 million shoppers.
                    g                               pp

            Source: http://www.ameinfo.com/172112.html




                                                Magesh Srinivasan
Store Si es
      Sizes




              Magesh Srinivasan
Sections




           Magesh Srinivasan
Store La o t
      Layout
Electronic Goods: Television, hi-fi sound equipment, Computers and office
                            ,              q p     ,    p

automation, Photographic equipment

Household Goods Section: Luggage house ware, Library house equipment
                         Luggage,      ware

Light Household Section: Stationery, sports goods, toys, Gardening, Camping,

car accessories, appliance, Telephone, music

Consumer Good Section: Cleaning products, toiletries, cold beverages, biscuits,

confectionery, general groceries

Accessories Section: Jewellery, watches, mobile,

Textile Section: Kids, children, men, women, home linen, accessories, footwear
                                                                Magesh Srinivasan
Store La o t
      Layout
Frozen foods Section:
– Fi h Widest range, Freshest quality, l
  Fish: Wid t        F h t        lit local and i
                                            l d imported f
                                                       t d from gulf and
                                                                  lf d
  abroad
– Meats: Widest range, freshest quality, local and imported from gulf and
  abroad
– Cheese: Local and imported



Fresh Foods Section:
– Vegetables: Widest range, Freshest quality, local and imported from gulf
  and abroad
– Bakery: Freshly baked cakes, croissants, French rolls, doughnuts, hot
  takeaway foods, ready made shawarmas.
– C
  Consumer goods: imported f foods, dairy products, ice creams

                                                           Magesh Srinivasan
Contents
 Objective                Promotion Calendar
 Hypermarket Definition   Commercial Terms
 Carrefour Global
 C    f    Gl b l         In St
                          I Store Promotion
                                   P      ti
 Carrefour UAE            POS
 Carrefour Store Sizes    After Sales Service
 Store Layout             Listing Structure
 Business Model           Back End Rebate
 Sales Split              Conclusion




                                        Magesh Srinivasan
Business
B siness Model




                 Magesh Srinivasan
Sales Split




              Magesh Srinivasan
Promotion Calendar

                                     Going     Going
                           Summer
DSF      DSF                         Home      Home
                            Offers
                                     Promo     Promo
                                               P




Going    Back
                                               X’mas
                                               X’
Home      To     Ramadan   Ramadan
                                             & New Year
Promo   School




                                               Magesh Srinivasan
Commercial Terms

 Commercial Business Contract

 Annual Rebate Program

 Payment terms

 Warranty & After Sales Service




                                  Magesh Srinivasan
Contents
 Objective                Promotion Calendar
 Hypermarket Definition   Commercial Terms
 Carrefour Global
 C    f    Gl b l         In St
                          I Store Promotion
                                   P      ti
 Carrefour UAE            POS
 Carrefour Store Sizes    After Sales Service
 Store Layout             Listing Structure
 Business Model           Back End Rebate
 Sales Split              Conclusion




                                        Magesh Srinivasan
In store promotion

 End-Cap or Gondola


 Prominent display


 Special offer


 Fees for 8-10 days




                      Magesh Srinivasan
POS

 Restricted usage


 Promotion based


 Short term




                    Magesh Srinivasan
After Sales Service
            Ser ice

 Customer Service Counter


 Replacement Policy


 Repair Return




                            Magesh Srinivasan
Display
Displa Goods

 FOC display goods


 Replace if damaged




                      Magesh Srinivasan
Listing Str ct re
        Structure

 HO

 M ‘A’

 M ‘B’

 M ‘C’

 I/O




                    Magesh Srinivasan
Back End Rebates

 Based on sell-out

 % of sell-out

 Value per unit sell-out

 FOC goods




                           Magesh Srinivasan
Conclusion
Concl sion

 Proactive/Systematic approach

 Relationship with ‘buyer’ is key
            p         y         y

  –   Listing

  –   National Promotions

  –   Leaflet entry

 Sales analysis based discussions
           y

 Dynamic business

 Competition trends


                                    Magesh Srinivasan

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Managing Carrefour in UAE

  • 1. Managing Carrefour – Understanding the hypermarket retail business
  • 3. Contents Objective Promotion Calendar Hypermarket Definition Commercial Terms Carrefour Global C f Gl b l In St I Store Promotion P ti Carrefour UAE POS Carrefour Store Sizes After Sales Service Store Layout Listing Structure Business Model Back End Rebate Sales Split Conclusion Magesh Srinivasan
  • 4. Objective Objecti e Provide an overview on hypermarket retail business with Carrefour as an example Magesh Srinivasan
  • 5. Hypermarket H permarket Defined Hypermarket = Supermkt + Dept. Store 1931,Concept from US 2007 sales = 72 Billion Euro Source: Middle East Grocer, June 2006 Magesh Srinivasan
  • 6. Carrefour Carrefo r Global 1,163 Hypermarkets 14,991 stores (including franchisees & partners) Source: Middle East Grocer, June 2006 Magesh Srinivasan
  • 7. Carrefour Carrefo r Global Franchisee-partner countries Europe  Total No. of Franchisees 1. Algeria Al i 1 2. Saudi Arabia 7 1. France  218  24 3. French overseas 2. Belgium  56 3. Spain  161  6 departments & territories 11 4. Greece and Cyprus  28 4. Egypt 3 5. Italy  l 59  1 5. United Arab Emirates 10 6. Poland  72 6. Japan 7 7. Romania  11 8. Turkey 19 7. Jordan 1 Total Europe  624  31 8. Kuwait 1 9. Oman 1 10. Qatar 2 11. Dominican Republic 1 Asia Total 12. Tunisia 1 1. China 112 America Total 2. Indonesia 37 Total 46 3. Malaysia y 12 1.Argentina 59 4. Singapore 2 2.Brazil  150 5. Taiwan 48 6. Thailand 27 3.Colombia  46 Total America                   255 Total Asia 238 Magesh Srinivasan
  • 8. 2007 Gro p B siness Res lts Group Business Results Magesh Srinivasan
  • 9. 2007 Gro p B siness Res lts Group Business Results Magesh Srinivasan
  • 10. Carrefour Carrefo r in UAE - Profile Start 1995 – Deira City Centre, Dubai Local Partner : MAF Hypermarket LLC 10 Stores Headoffice : MAF Towers, Dubai Magesh Srinivasan
  • 11. Locations MAF Carrefour plans to more than double the number of stores in the Middle East region by 2012. The company already employs over 2,500 staff in 30 stores in 11 countries in the Middle East region and serves 10 million shoppers. g pp Source: http://www.ameinfo.com/172112.html Magesh Srinivasan
  • 12. Store Si es Sizes Magesh Srinivasan
  • 13. Sections Magesh Srinivasan
  • 14. Store La o t Layout Electronic Goods: Television, hi-fi sound equipment, Computers and office , q p , p automation, Photographic equipment Household Goods Section: Luggage house ware, Library house equipment Luggage, ware Light Household Section: Stationery, sports goods, toys, Gardening, Camping, car accessories, appliance, Telephone, music Consumer Good Section: Cleaning products, toiletries, cold beverages, biscuits, confectionery, general groceries Accessories Section: Jewellery, watches, mobile, Textile Section: Kids, children, men, women, home linen, accessories, footwear Magesh Srinivasan
  • 15. Store La o t Layout Frozen foods Section: – Fi h Widest range, Freshest quality, l Fish: Wid t F h t lit local and i l d imported f t d from gulf and lf d abroad – Meats: Widest range, freshest quality, local and imported from gulf and abroad – Cheese: Local and imported Fresh Foods Section: – Vegetables: Widest range, Freshest quality, local and imported from gulf and abroad – Bakery: Freshly baked cakes, croissants, French rolls, doughnuts, hot takeaway foods, ready made shawarmas. – C Consumer goods: imported f foods, dairy products, ice creams Magesh Srinivasan
  • 16. Contents Objective Promotion Calendar Hypermarket Definition Commercial Terms Carrefour Global C f Gl b l In St I Store Promotion P ti Carrefour UAE POS Carrefour Store Sizes After Sales Service Store Layout Listing Structure Business Model Back End Rebate Sales Split Conclusion Magesh Srinivasan
  • 17. Business B siness Model Magesh Srinivasan
  • 18. Sales Split Magesh Srinivasan
  • 19. Promotion Calendar Going Going Summer DSF DSF Home Home Offers Promo Promo P Going Back X’mas X’ Home To Ramadan Ramadan & New Year Promo School Magesh Srinivasan
  • 20. Commercial Terms Commercial Business Contract Annual Rebate Program Payment terms Warranty & After Sales Service Magesh Srinivasan
  • 21. Contents Objective Promotion Calendar Hypermarket Definition Commercial Terms Carrefour Global C f Gl b l In St I Store Promotion P ti Carrefour UAE POS Carrefour Store Sizes After Sales Service Store Layout Listing Structure Business Model Back End Rebate Sales Split Conclusion Magesh Srinivasan
  • 22. In store promotion End-Cap or Gondola Prominent display Special offer Fees for 8-10 days Magesh Srinivasan
  • 23. POS Restricted usage Promotion based Short term Magesh Srinivasan
  • 24. After Sales Service Ser ice Customer Service Counter Replacement Policy Repair Return Magesh Srinivasan
  • 25. Display Displa Goods FOC display goods Replace if damaged Magesh Srinivasan
  • 26. Listing Str ct re Structure HO M ‘A’ M ‘B’ M ‘C’ I/O Magesh Srinivasan
  • 27. Back End Rebates Based on sell-out % of sell-out Value per unit sell-out FOC goods Magesh Srinivasan
  • 28. Conclusion Concl sion Proactive/Systematic approach Relationship with ‘buyer’ is key p y y – Listing – National Promotions – Leaflet entry Sales analysis based discussions y Dynamic business Competition trends Magesh Srinivasan