Introduction
The Carrefour group: a world leader
in distribution
 An international retailer
 promoting the growth of local economics
History
1959:Carrefour was established.
1960:The first Carrefour store opened and
was an immediate success.
1963:Carrefour established its first
hypermarket.
1970:The company went public.
In the 1970s-80s:International Growth
History
 In the 1990s:Carrefour continued growth
 In the late 1990s and Beyond: Strategic
Acquisitions
 In 2008: Continuing growth in a challenging
environment
Industry Analysis
The exchange of food and weapon
Traders
Retail
Industry
Shops
Stores(Specialty shops)
Department store
Shopping Centers and Malls
Global Issue
China
India
Russia
Emerging
Markets
China
Until 1990s, foreign retailers
began to be allowed in.
Largest City
Second and third tier cities
India
Wal-Mart:
The Announcement of Openness
Metro:
Planning to Corporate with
Local Government
Tesco:
A Successful entry
Risks
Fierce competition with the
traditional trade.
Business management of
Retail Industry in emerging markets.
The counterfeit problem.
The transportation cost
Future Trends
Recruiting local people
Approaching the market
Innovating
Company Analysis
--Strengths
 Market leader
 Brand recognition
 Focus on competitive prices
--Weakness
Stagnant sales in France
 Declining of profitability
 Losses for on-line business
Opportunities
 Strong growth potential in Asia
 New stores
 Agreements with Coop Atlantique
Threats
Stiff competition from discount retailers in France
Increasing labor costs in Europe
Poor retailing outlook in the Eurozone
Global Expansion
Win-win target:
both in France, and all subsidiaries
 Encourage local economy
Expanded Steps
Examples
Conducting Social Audits
Local Specialties
 Labors: wages and hours
Sustainability
 Economic
 Social
 Environmental
Automated pallet
traceability system
Good traceability
Diversified
transportability
Unique logistics
Utility
Use of
geographic
resources
A. Rail
Alleviate
environmental
impact
B. River
C. Truck load
New Departments
 Retain the original architecture
 Proper sites to build
 Traffic jam vs. public safety
Urban
Rural
Recruitment
 SKILLED people
 Fair ranking management
 Men and women
 Local and expatriate staff
 Training and motivation
Competitors
Tesco
Main Competitors
in Retail Market
Metro
Wal-Mart
Carrefour
Wal-Mart
Tesco
Metro
Others
Tesco
----Every shopper needs every little help
The fourth largest global retailer
The first movement among the top
The humanistic care
The most potential competitor
Korean Market
Metro Group
NO.1 in German Retailer Market
Media Markt, Saturn: Electronic Retailers
Metro Cash & Carry: No credit account
Real (including Extra), Galeria Kaufhof
Experiences in self-service wholesale
Wal-Mart
The largest one in the world’s retail industry
In 1990, beating Sears and K-Mart
The most significant reason for
customers’ shopping there----Low Price
Chinese Markets’
competition between
two giants
The 100th store in China in 2007
Quick Expansion---from metropolis
to central and western of China.
Local Product Sourcing
Flexibility and Creation
Short-term Recommendations
Experienced Employees
Local specialists vs. Expatriate staff
Political involvement
Political inclination caused to profit crisis (China)
Long-term Recommendations
 Improving company's image
 Making more effort on global expansion
Conclusion
 On track to attain 2008 objectives
 Continuing and deepening action plan
 Carrefour well positioned to continue
growing in a challenging environment
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Essentially a food retailer
Multi-format
Increasingly international
Solid debt profile