International retailing: Carrefour

Résumé du document

Carrefour is one of the biggest distributions group in the world. Since its creation in 1959, Carrefour has always innovated to build a strong reputation, a good image and a clear strategy of development.

With the globalization, Carrefour has exported its model in other countries to diversify its earnings. Carrefour has understood quickly the importance of going global. Today, Carrefour is implanted in 33 countries like China, Poland, Brazil, Spain, and Argentina. Europe, Asia and Latin America are the three big markets for Carrefour. With the merger with Promodès in 1999, Carrefour became the second largest distribution company in the World, the first in Europe and the second in France (domestic market).

How did Carrefour become one of the most important distribution groups in the world? What is its strategy to implant supermarkets, hypermarkets globally? What are the countries in which the strategy has succeeded, and the countries in which it has failed?

Extraits

[...] - Press: The press opens a broad range of choice of the supports, which allows a possibility of targeting for Carrefour. By this means, the argumentation can be written and mark the reader. Carrefour can thus present its new lines of clothing, its days employment, its private labels, the new collections, announce the attribution of price, the launching of a product or a service (such as the gasoline stations). Moreover catalogs are used by all retailers. They present the prices, the products, give desire for buying, and are very regularly renewed. [...]

[...] It's a global retailer which is present all over the world despite some markets difficulties. POLAND Carrefour's status: Number 5 Main competitors(s):Auchan, JerónimoMartins, Casino 57 hypermarkets 347 supermarkets 94 convenience stores Within Poland Carrefour's expansion has been equally focussed and targeted. They have increased hypermarket sales and then 26 Globi supermarkets were consolidated into the Group. The Carrefour and Globi merger has paid dividends on the supermarket front as Champion, part of the Globi network, and have been able to accelerate their expansion in Poland significantly with the opening of new stores and the promise of more to follow. [...]

[...] With the merger with Promodès in 1999, Carrefour is became the second largest distribution company in the World, the first in Europe and the second in France (domestic market). How Carrefour is became one of the most important distribution groups in the world? What is its strategy to implant supermarkets, hypermarkets abroad? What are the countries in which the strategy has succeed, and the countries in which this one has failed? Presentation of the group History The 60's 1959: Creation of Carrefour by two families (Defforey and Fournier). 1960: the first Carrefour supermarket opens in Annecy. [...]

[...] Furthermore, the implementation of its own brand and the creation of services allowed it to acquire this leader's place and to remain the first French hypermarket. But all these investments weakened Carrefour financially. Besides, the competitive strength on the French market, in which the retailer is almost dependent, obliges it to lower its rates of margin. Finally, the implementation of the LME will weigh on Carrefour, because it will open doors to the installation of Wall Mart in France, and which is already present on the French market. On a international scale, we can say that Wall Mart is the main competitor for Carrefour. [...]

[...] Since it arrived, Wal-Mart didn't stop to develop his activity and to gain some new market shares. Then, Carrefour had difficulties to adapt itself. There was some new payment periods shorter than in France to 15 days in Mexico and 30 to 40 days in France). Usually these delays are a source of profit. Furthermore, it encountered difficulties to manage the products demand and to satisfy demand because they have very different purchasing power (very low or very high). Finally, the profitability was too weak. [...]