Carrefour In Mexico

Carrefour background information

Carrefour is an international retail chain with its headquarters located in Levallois-Perret, France. Carrefour operates mainly in the European Union, South America, East Asia and Northern Africa. It is currently the number 1 retail group in Europe and number 2 retail group worldwide in terms of revenue after Wal-Mart. Carrefour has 12 547 stores, 456 295 employees in 29 countries worldwide. Carrefour’s first store was opened in 1960, in Annecy, France and today the original store is still operating and is the smallest Carrefour location in the world. The Carrefour group pioneered the idea of a �hypermarket,’ which is a large outlet consisting of both a grocery store and department store under one roof. Carrefour’s fist �hypermarket’ opened in 1963, in Saint-Genevieve-des-Bois, France.

Over the years Carrefour has created many of its own products and services. A couple of examples are; in 1976, Carrefour introduced it own unbranded line of products “Produits Libres,” in 1981, they introduced their own payment card “the Pass Card,” and in 1984, they launched Carrefour Insurance Services.

In its home country of France, Carrefour saw and continues to see growth and expansion through acquisition of competitors and from within. France is home to 3857 stores of the Carrefour group or about 31% of Carrefour’s total number of outlets worldwide. France is still Carrefour’s main customer, accounting for approximately 48% of Carrefour’s global sales or €77 901 million in 2006.

Carrefour and its major developments in France

The Carrefour group is a French leading distribution groups. It is the second largest retail group in the world in terms of revenue after Wal-Mart and the largest in Europe and so in France. Carrefour stores are very large retail facility which carries an enormous range of products under one roof, including full lines of groceries and general merchandise.

пÑ"? The French market is the biggest for Carrefour. Indeed in 2007,

Carrefour sales in France represents 42085m€ which is more than 45% of its total sales.

пÑ"? The group currently operates four main grocery store formats in France and currently has over 3698 stores, either company-operated or franchises. Each four different stores target a specific market and have its own strategy. Below all the stores present in France for each section.

- Hypermarkets “Choice and quality for everyone”

Sales area в‰Ò 2500 m2

Offer of food: 3000≤ X ≤ 5000 ref

Offer of non food item: 20000≤ X ≤ 35000 ref

Location: Usually on the outskirts of cities

- Supermarkets: “The price people want, close to home”

Sales area: 400≤ X ≤ 2500m2

Offer of food: ≤3000 ref

Offer of non food item: ≤ 20000 ref

Location: In small and medium-sized cities

- Hard discount stores “ Grocery products at lower prices”

Sales area: 400≤ X ≤ 1200 m2

Offer of food: ≤ 1000 ref

Location: In small and medium-sized cities

- Convenience stores: “ Just what you need, right next door”

Sales area: 120≤ X ≤ 300m2

Offer of food: ≤ 500 ref

Location: Located in the city centre, at the heart of neighbourhoods, or in the villages

In France, there are:

- 216 hypermarkets which represent 54% of total French net sales

- 1024 supermarkets which represent 22% of total French net sales

- 804 hard discount which represent 7% of total French net sales

- 1654 convenience stores which represent 17% of total French net sales

I) Why Carrefour is successful in France?

Carrefour Company is developed in its own country (knowledge of the French market and the French culture) and has learned through the decades how to reach the needs and the wants of the customers and adapted itself to their evolution.

A) The success due to Carrefour strategy

1) An efficient channel of distribution:

This multinational has diversified its distribution channel to satisfy all the customers (from small store in village to big store close to the town). Carrefour is successful because it allows French people to find any types of goods in the same place (to go shopping is efficient). The people can find fresh food, clothes, hi-tech items, books, cooking stuff, garden stuff… That is also related to a cultural aspect: the French do not want to waste time in shopping so they have to find all they need in the same place.

Then it provides a wide range of high quality products in a lower price (a large number of people have the opportunity to purchase quality consumer goods).

Next Carrefour Company is really involved in fair trade practices (sell faire trade products such as coffee from Guatemala…) and sustainable development. French people are very sensitive with these themes. There is a real increase in French collective consciousness in respect of the environment protection. As a consequence they appreciate Carrefour products because:

• In 1992, Carrefour launched its вЂ?Quality Line’ products, derived from agricultural practices that respect the environment (preservation of ecosystems, management of the risk of pollution to earth and water, etc.), and which can now be recognized by their “Engagement QualitÐ"© Carrefour”