Carrefour

Carrefour:: An Overview
January 2003
 Table of Content

Overview

Background

Operations

Sales By Format

Carrefour By Country

Sales Breakdown By Region, 2002

Sales Breakdown By Country, 2002

Latest Major Developments

Carrefour In Context

Leading Global Retailers’ Spread, 2002

Analysis By Country

Prospects And Strategy

SWOT Analysis
 Overview

Main address: Carrefour S.A., BP 419-16, 75769 Paris Cédex 1

6 Avenue Raymond Poincaré, Paris 75116, France

Tel: +33 1 53 70 19 00

Fax: +33 1 53 70 86 16

Website: www.carrefour.com

Carrefour is the world’s second largest retailer in terms of sales.

Truly global player with operations in over 30 countries.

Major formats are hypermarkets, supermarkets and discount stores.

Well known for entering and adapting to emerging markets.

Group turnover (2002): EUR85.6 billion

Total number of stores (including franchises): 10,673

 Background

Carrefour SA was first listed on the French stock market in 1970. First
opening stores in France during the 1960s, Carrefour went on to open the
first hypermarkets in France and Europe.

First started expanding into the rest of Europe in the early 1970s and 1970
At the same time the ED discount format was introduced.

The Carrefour own-label was introduced in 1985.

The first non-European store was opened in Brazil in 1975. Carrefour's first
Asian store opened in Taiwan in 1989.

Carrefour announced its intention to merge with Promodès at the end of

August 1999 with the merger approved in January 2000. The Carrefour
name was retained with the majority of Promodès stores rebranded. The
merger pushes Carrefour to second place in global retailing.
 Operation

Carrefour operates a diverse portfolio of formats, including hypermarkets,

supermarkets, discount stores, cash & carries, c-stores and a number of
neighbourhood store formats for independent retailers.

Pioneer of hypermarket format. All hypermarkets trade under the Carrefou

banner worldwide. With the opportunities for hypermarket openings in
developed markets slowing, Carrefour’s strategy is to use the format to
establish itself in emerging markets around the world.

Supermarkets trade under a variety of fascias, although Champion is the

most important.

Discount stores are operated by Dia. Dia is now seen as a key brand for
Carrefour’s future growth. Given the success of the Dia format with its high
profitability levels, it is not surprising that Carrefour is placing more
emphasis on the discount banner in order to grow internationally –
especially in South America and Asia.

The strategy is to establish all these major formats (hypermarkets,

supermarkets and discount stores) in all countries.
 Sales By Format, 2002

Convenience Discount Stores Foodservice

Stores 6% 1%
Cash & Carries
2% 5% Franchised
Stores
Supermarkets &
2%
Neighbourhood
Stores
2%

Supermarkets
23%

Independent Hypermarkets
Retailers 58%
1%
 Carrefour by Country: Asia Pacifi

France Portugal
Formats: Hypermarkets, Formats: Hypermarkets,
supermarkets, discount stores, c- discount stores
stores, cash & carries, independent No. of stores: 346
retailers, forecourt stores
2002 retail sales: €0.9 billion
No. of stores: 4,530
Romania
2002 retail sales: €45.2 billion
Formats: Hypermarkets
Greece
No. of stores: 1
Formats: Hypermarkets,
2002 retail sales: €0.1 billion
supermarkets, discount stores
No. of stores: 414 Slovakia
2002 retail sales: €1.4 billion Formats: Hypermarkets
No. of stores: 4
Italy
2002 retail sales: €0.1 billion
Formats: Hypermarkets,
supermarkets, c-stores, cash & Spain
Belgium carries Format: Hypermarkets,
Formats: Hypermarkets, No. of stores: 946 supermarkets, discount stores, cash
supermarkets, c-stores carries
2002 retail sales: €6.3 billion
No. of stores: 484 No. of stores: 2,802
2002 retail sales: €5.3 billion
Poland
2002 retail sales: €11.7 billion
Formats: Hypermarkets,
Czech Republic supermarkets Switzerland
Formats: Hypermarkets No. of stores: 76 Formats: Hypermarkets
No. of stores: 8 2002 retail sales: €0.8 billion No. of stores: 11
2002 retail sales: €0.3 billion 2002 retail sales: €0.6 billion
 Carrefour by Country: South America

Argentina Colombia
Formats: Discount stores, Formats: Hypermarkets
hypermarkets, supermarkets No. of stores: 8
No. of stores: 451 2002 retail sales: €0.2 billion
2002 retail sales: €1.5 billion Dominican Republic
Brazil Formats: Hypermarkets
Formats: Hypermarkets, No. of stores: 1
supermarkets, c-stores
2002 retail sales: €0.1 billion
No. of stores: 267
Mexico
2002 retail sales: €3.7 billion
Formats: Hypermarkets
Chile
No. of stores: 21
Formats: Hypermarkets
2002 retail sales: €0.8 billion
No. of stores: 4
2002 retail sales: €0.1 billion
 Carrefour by Country: Asia Pacifi

Malaysia
Formats: Hypermarkets
No. of stores: 6
China 2002 retail sales: €0.3 billion
Formats: Discount stores, Singapore
hypermarkets Formats: Hypermarkets
No. of stores: 62 No. of stores: 1
2002 retail sales: €1.5 billion 2002 retail sales: €0.1 billion
Indonesia South Korea
Formats: Hypermarkets Formats: Hypermarkets
No. of stores: 9 No. of stores: 25
2002 retail sales: €0.2 billion 2002 retail sales: €1.3 billion
Japan Taiwan
Formats: Hypermarkets Formats: Hypermarkets
No. of stores: 4 No. of stores: 28
2002 retail sales: €0.2 billion 2002 retail sales: €1.4 billion
 Carrefour by Country: Africa & Middle Eas

Egypt Tunisia
Formats: Hypermarkets Formats: Hypermarkets
No. of stores: 1 No. of stores: 1
2002 retail sales: na 2002 retail sales: €0.04 billion
Oman Turkey
Formats: Hypermarkets Formats: Hypermarkets,
No. of stores: 1 supermarkets, discount stores
2002 retail sales: €0.1 billion No. of stores: 134
Qatar 2002 retail sales: €4.4 billion
Formats: Hypermarkets UAE
No. of stores: 1 Formats: Hypermarkets
2002 retail sales: €0.1 billion No. of stores: 8
2002 retail sales: €0.5 billion
 Carrefour Sales Breakdown By Region, 2002

Middle East
Asia 1%
7%

South America
8%

Europe
84%
 Carrefour Sales Breakdown By Country, 2002

Belgium Brazil
Smallest fifteen Argentina
6% 4%
countries 2%
4% China
Taiwan 2%
2%

Switzerland
1%

Spain
13%

Portugal
1%

Poland
1% France
52%
Mexico
1%

South Korea
Italy
2%
7%
Greece
2%
 Latest Major Developments (1/2

January 2003 - Carrefour has reported a slip in gross sales for 2002 of 1.6%
to EUR76.78 billion. Although currency effects in emerging markets
(devaluations in Brazil and Argentina and weaker Asian currencies) knocke
sales growth back, on a constant currency basis sales rose by 4.5%.

January 2003 – Unconfirmed reports suggest Carrefour is to enter Bulgaria

This follows on from reports throughout 2002 that the group is planning
entry into Russia and the Philippines.

December 2002 - Opening of the first Carrefour hypermarket in Egypt by th

Majid Al Futtaim group which holds the Carrefour franchise for countries in
the Middle East.

December 2002 – Carrefour acquires the 20.3% stake not already owned in
its Spanish subsidiary, Centros Comerciales Carrefour.
 Latest Major Developments (2/2

August 2002 – CEO Daniel Bernard stresses that Carrefour is now coming to
the end of the three year process of merging with Promodès stating "The
synergies from that are in place, but there are still more to come,
particularly in logistics. That's a five to six year process."

May 2002 - Carrefour acquires 12 outlets from the failed Metro supermarke
chain in Argentina.

February 2002 – Carrefour confirms that it does indeed plan to open

discount stores in China under the Dia banner as previously rumoured. The
first opening is scheduled for Shanghai in 2003. Although it is too early to
say how many Dia stores the company will open in China, Carrefour believe
that the potential market is enormous.
 Carrefour In Contex

Leading global grocery/GM retailers in terms of sales,

2002:

1. Wal-Mart – EUR255.1 billion.

2. Carrefour – EUR87.2 billion.
3. Ahold – EUR75.4 billion.
4. Kroger – EUR58.9 billion.
5. Ito-Yokado – EUR57.7 billion.
6. Metro Group – EUR56.1 billion.
7. Target – EUR46.9 billion.
8. Albertsons – EUR44.6 billion.
9. Kmart – EUR42.5 billion.
10. Tesco – EUR41.3 billion.
 Carrefour In Contex

Leading global grocery/GM retailers in terms of

countries of operation, 2002:

1. Carrefour – 31 countries.
2. Ahold – 26 countries.
- Metro Group – 26 countries.
4. Ito-Yokado – 13 countries.
- Tesco – 13 countries.
6. Wal-Mart – 11 countries.
7. Kroger – 1 country.
- Target – 1 country.
- Albertsons – 1 country
- Kmart – 1 country.
 Carrefour In Contex

Leading global grocery/GM retailers in terms of number

of stores, 2002:

1. Ito-Yokado – 23,772 stores (5,562,448m2).

2. Carrefour – 10,673 stores (12,071,981m2).
3. Ahold – 9,276 stores (9,766,550m2).
4. Wal-Mart – 5,080 stores (49,632,668m2).
5. Kroger – 3,668 stores (11,659,343m2).
6. Metro Group – 2,393 stores (11,125,900m2).
7. Albertsons – 2,285 stores (9,099,890m2).
8. Tesco – 2,276 stores (4,284,561m2).
9. Kmart – 1,620 stores (12,524,500m2).
10. Target – 1,476 stores (15,758,730m2).
 Leading Global Retailers Spread, 2002

Number of stores by country

Country Carrefour Wal-Mart Ahold Tesco Metro
Argentina 451 11 245
Austria 41
Belgium 484 23
Bulgaria 8
Brazil 267 22 142
Canada 201
Chile 4 78
China 62 25 18
Colombia 8
Costa Rica 96
Croatia 1
Czech Rep 8 209 17 10
Denmark 21 4
Dominican Republic 1
Ecuador 1
Egypt 1
El Salvador 21
Estonia 6
France 4,530 1 117
Germany 95 1,791

…continued next pag

 Leading Global Retailers Spread, 2002

Number of stores by country

Country Carrefour Wal-Mart Ahold Tesco Metro
Greece 414 14
Guatemala 98
Honduras 27
Hungary 52 32
Indonesia 9 21
Italy 946 79
Japan 4 405 1
Latvia 33
Lithuania 38
Luxembourg 3
Malaysia 6 41 3
Mexico 21 595
Morocco 5
Netherlands 2,280 22
Nicaragua 20
Norway 1,173
Oman 1
Paraguay 12
Peru 39
Philippines

…continued next pag

Leading Global Retailers Global Spread, 2002

Number of stores by country

Country Carrefour Wal-Mart Ahold Tesco Metro
Puerto Rico 54
Poland 76 179 77 81
Portugal 346 10
Qatar 1
Republic of Ireland 77
Romania 1 16
Russia 6
Singapore 1
Slovakia 4 12 17 6
South Korea 25 12 20
Spain 2,802 694 36
Sweden 2,127
Switzerland 11
Taiwan 28 3 15
Thailand 17 51 49
Tunisia 1
Turkey 134 23
UAE 8
UK 259 1,975 29
USA 3,401 1,628
Vietnam 2
Europe
 Analysis By Country: Belgium

Carrefour’s status: Leader

Main competitors(s): Delhaize, Colruyt, Cora

Strengths Weaknesses
1. Market leader. 1. Unprofitable since acquisition.
2. Operations span a wide variety of 2. Conversion of hypermarkets to
formats/fascias. Carrefour banner has alienated som
3. Hypermarkets performing well in shoppers.
non-food ranges. 3. Labour relations have been
problematic.
Opportunities
1. Discount store development. Threats
2. More forecourt stores. 1. Colruyt set to add space through
Laurus deal.
3. Greater synergies between different
supermarket chains.
 Analysis By Country: Czech Republi

Carrefour’s status: Number 8

Main competitors(s): Ahold, Schwarz, Rewe

Strengths
1. Credible economy ranges.
2. Adaptable hypermarket format.
3. Local buying infrastructure.
4. Impressive food and non-food offer.
Opportunities
1. Begin to catch up in discount store
terms.
2. More smaller format hypermarkets.
3. Possible withdrawals by foreign
players could provide acquisition
opportunity.
Weaknesses
1. Lagging rival operators by a large
margin.
2. Perceived as too upmarket by many
shoppers.
3. Has watched as other players have
started opening discount units.
Threats
1. Faced by strong competition from
impressive international rivals.
2. Could risk being seen as
leisure/tourist destination rather
than a shopping venue.
 Analysis By Country: France

Carrefour’s status: Leader

Main competitors(s): Leclerc, ITM, Auchan

Strengths Weaknesses
1. Overwhelming leader. 1. Lost sight of quality in recent
2. Immense brand awareness and trust. price-led skirmishes with rivals.
3. Multi-format presence in all areas of 2. Lost market share to Leclerc.
country. 3. Disappointing E-commerce.
4. Extensive private label lines. 4. Promodès integration has not bee
seamless.
Opportunities
1. Development of clothing supply Threats
chain and ranges. 1. Heavy price competition –
2. Supermarket and discount store especially from German
openings. discounters.
3. Growth of c-store/forecourt store 2. Not much scope for acquisitions.
business. 3. Planning laws are restrictive.
4. Rivals joining forces.
5. Wal-Mart evaluating entry into
France.
 Analysis By Country: Greece

Carrefour’s status: Leader

Main competitors(s): Delhaize, Sklavenitis, Veropoulos

Strengths
1. Number one in the market.
2. Joint venture and joint branding
mean the stores have a “local”
appeal.
3. Active in hypers, supers and
discount stores.
4. Franchise deals mean low cost and
low risk.
Opportunities
1. Development of clothing supply
chain and ranges.
2. Still potential for many more stores.
3. Fairly relaxed competition laws
could enable sizeable acquisitions.
Weaknesses
1. Lower share of locally sourced good
than in other markets.
2. Some critics suggest that rebrandin
of certain operations has been
rushed and confusing.
Threats
1. Smaller rivals such as Delhaize and
Atlantic are fighting hard for market
share.
 Analysis By Country: Italy

Carrefour’s status: Number 3

Main competitors(s): Coop Italia, Conad, Auchan

Strengths
1. Reasonable hypermarket and
supermarket presence.
2. Effectively ditched frozen food chain.
3. Own-brands and non-food ranges
compare well to larger domestic
rivals.
Opportunities
1. Acquisitions.
2. Could introduce Dia in the longer
term.
3. Convenience format is ripe for
expansion.
4. Growth into underdeveloped South.
Weaknesses
1. Stores appear quite clinical
alongside their Italian counterparts
2. Over-concentration in North-East.
Threats
1. Conad and Cop Italia are strong
rivals with impressive multi-format
operations.
2. Auchan is poised for sustained
growth in Italy.
3. Store openings are beset with red
tape.
 Analysis By Country: Poland

Carrefour’s status: Number 5

Main competitors(s): Auchan, Jerónimo Martins, Casino

Strengths
1. Decent network hypermarkets and
supermarkets.
2. Has been enjoying encouraging
comparable sales growth.
Weaknesses
1. Lack of private label offer.
2. Has been slow to convert the Globi
stores inherited from GIB.
3. Sat back as Tesco picked up Hit.

Opportunities
1. Ambitious growth targets.
2. Discount stores could be launched.
3. Shift away from price-led to quality-
led competition?
4. Introduction of own-brands.
Threats
1. Up against some of Europe’s finest
grocers.
2. Viable hypermarket locations are
increasingly thin on the ground.
3. Growing competition in non-food
areas from specialist chains.
 Analysis By Country: Portuga

Carrefour’s status: Number 3

Main competitors(s): Modelo Continente, Jerónimo Martins, Auchan

Strengths
1. Strong dual presence through hypers
and discount stores.
2. Discount stores have been
performing very well.
3. Own brands selling well in food and
non-food.
Opportunities
1. Mainstream supermarkets could be
unveiled.
Weaknesses
1. Hypermarket openings have been
slower than hoped.
2. Strategy has occasional appeared
fuzzy in Portugal.
3. Conflict with Modelo Continente.
Threats
1. Ongoing arguments with Modelo
Continente appear to be a
counterproductive distraction.
2. Lidl wants to challenge in
discounting.
 Analysis By Country: Romania

Carrefour’s status: Number 3

Main competitors(s): Rewe, Delhaize, Cora

Strengths
1. First mover status among West
European hypermarket operators.
2. Has used a low-risk franchised route
to market.
3. Comprehensive array of Romanian
produce.
Opportunities
1. Could expand into other formats.
2. Further links with local suppliers.
Weaknesses
1. Has lagged other players in terms o
discount store opening.
Threats
1. Increasing competition for what stil
amounts to a small market.
2. Unclear if Romanian consumer
economy will support many more
hypermarkets.
 Analysis By Country: Slovakia

Carrefour’s status: Number 5

Main competitors(s): Tesco, Rewe, Prima Zdrodj

Strengths Weaknesses
1. The Carrefour hypermarket format is 1. Stalled on four stores for a couple o
an impressive and popular one in years.
Slovakia. 2. Tesco appears to be building an
2. Decent private label offering. unassailable lead.

Opportunities
1. Opening of more hypermarkets.
2. Diversification into discounting –
lack of strong competition in this
sub-sector of the market.
Threats
1. Overtaken by more players as
growth plans falter.
2. Carrefour stores could be of interest
to a more aggressive predator.
 Analysis By Country: Spain

Carrefour’s status: Leader

Main competitors(s): Eroski, Mercadona, ECI

Strengths
1. Dominant market leader.
2. Credible own-brand strategy and
performance.
3. Vast discount store network.
Opportunities
1. More new stores across all banners.
2. Potential for small regional
acquisitions.
Weaknesses
1. Poor e-commerce performance.
2. Transformation from Continente to
Carrefour lacked finesse and
sensitivity towards Continente
shoppers.
3. Champion less impressive than
Carrefour and Dia.
4. El Corte Inglés still leads the way in
fresh food merchandising.

Threats
1. Aldi, Lidl and Tengelmann are
chasing discount market share.
2. Spanish food retailers are not
pushovers – the likes of Caprabo,
Eroski and Mercadona are fighting
back.
 Analysis By Country: Switzerland

Carrefour’s status: Number 5

Main competitors(s): Migros, Coop Schweiz, Bon appetit

Strengths Weaknesses
1. One of the country’s leading 1. Outbid for Waro.
hypermarket operators. 2. Store conversions angered some
2. Foreign pioneer in once protective Jumbo shoppers.
and low competition market. 3. Again, its growth targets appear
3. Formed strong JV with local partner over-ambitious.
– instant expertise.
4. Much wider product ranges than Threats
rivals.
1. Crowded market ruled by two
powerful giants.
Opportunities 2. Switzerland is a fairly small market
1. New stores. scope for hypermarket development
2. Could pick up some smaller is patchy at best.
operators.
3. Discount stores could be an option.
South America
 Analysis By Country: Argentina

Carrefour’s status: Leader

Main competitors(s): Ahold, Coto, Cencosud

Strengths Weaknesses
1. Market leader. 1. Over-concentrated in the Greater
2. Multi-format approach. Buenos Aires region.
3. Discount formula has appealed in 2. Weak own-brand sales in Norte
times of crisis. supermarkets.
4. Hypermarkets performing well in
non-food ranges. Threats
1. Economic/political uncertainty.
Opportunities 2. Wal-Mart looking for further growth
1. Geographic expansion.
2. Potential acquisitions (Eki in
particular).
3. Increase private-label penetration.

Carrefour’s status: Number 2
Main competitors(s): Casino, Sendas, Modelo Continente
Strengths
1. Hypermarket leader.
2. Successful launch of Dia.
3. High participation of own-label in
turnover.
4. Impressive clothing sales.
Opportunities
1. More discount store development.
2. Growth in Sao Paulo.
Analysis By Country: Brazi
Weaknesses
1. Missed opportunity to acquire Sé
supermarket chain.
2. Limited geographical spread.
Threats
1. Consolidation of leadership by
Casino.
2. Wal-Mart gearing up for growth pus

Carrefour’s status: Number 5
Main competitors(s): D&S, Ahold, Cencosud
Strengths
1. Impressive hypermarket operation.
2. Strong player in non-foods.
3. Good mix of local and international
products.
Opportunities
1. Supermarket openings/acquisitions.
2. Discount store debut?
3. More own-label ranges.
Analysis By Country: Chile
Weaknesses
1. Growth rate has been fairly
laborious.
2. Entirely reliant on Santiago as its
market.
Threats
1. Seems to be lagging main
competitors in growth terms.
2. Commitment to Chilean market and
Carrefour’s plans both appear
uncertain.
 Analysis By Country: Colombia

Carrefour’s status: Number 4

Main competitors(s): Casino, Carrulla Vivero, Olimpica

Strengths Weaknesses
1. Very price-competitive compared to 1. Dwarfed by compatriot Casino.
rivals. 2. Own-brands relatively
2. Relatively large stores with broad underdeveloped.
non-food lines. 3. Has missed out on significant
3. Store openings are progressing well. takeovers.
4. High proportion of locally sourced
products. Threats
1. Someone else takes over
Opportunities Carulla Vivero.
1. Organic supermarket and discount
store growth.
2. Takeover of Carulla Vivero.
3. Expansion beyond Medellin and
Bogota.
 Analysis By Country: Dominican Republi

Carrefour’s status: N/a

Main competitors(s): N/a

Strengths Weaknesses
1. Lack of decent competition. 1. Slowing sales performance.
2. Excellent store location in modern
shopping centre. Threats
1. Economic stagnation.
Opportunities 2. Market exit?
 Analysis By Country: Mexico

Carrefour’s status: Number 6

Main competitors(s): Wal-Mart, Comerci, Soriana

Strengths Weaknesses
1. Higher quality of retailing compare 1. Stuck with limited store base for
to rivals. several years.
2. Large average store size enables 2. Perceived as expensive.
wider ranges. 3. Missed out on taking over Auchan’s
3. Good mix of local/national brands. stores.

Opportunities
1. Acquisition of larger and/or smaller
players.
2. Discount stores would be well
received by Mexican shoppers.
Threats
1. All-conquering Wal-Mart is taking
over the market.
2. Smaller niche players such as
Gigante and H.E. Butt are catering
for the higher end of the market.
Asia -Pacific
Asia-Pacific

Carrefour’s status: Number 5
Main competitors(s): CRE, Dairy Farm, AS Watson, Shanghai Lianhua
Strengths
1. One of the first Western entrants.
Regarded as most successful foreign
operators.
2. Has been adaptable in face of
changing government policies.
3. Format and product mix have been
modified well to meet local demands.
Opportunities
1. Supermarket and discount store
development.
2. A massive potential market.
3. Higher own-label penetration.
Analysis By Country: China
Weaknesses
1. Has appeared ignorant of local
planning laws.
2. Still a weak showing from own-
branded goods.
Threats
1. Dearth of local managers.
2. Local players have consolidated to
fend off the likes of Carrefour.
3. Policy changes by central/local
governments.
4. Wal-Mart and Tesco etc looking to
compete.
 Analysis By Country: Indonesia

Carrefour’s status: Number 3

Main competitors(s): Delhaize, Dairy Farm, Alfa Retailindo

Strengths
1. Leading hypermarket operator in the
country.
2. Is able to mix local products with
sought-after international brands.
3. Is able to appeal to more affluent
local consumers.
Opportunities
1. Long term scope for discount chain.
2. There are several potential takeover
targets in the supermarket sector.
Weaknesses
1. Lack of definite expansion timetable
2. Over-reliant on exported French
management.
Threats
1. General political instability.
2. Carrefour has been specifically
targeted by violent activists.
 Analysis By Country: Japan

Carrefour’s status: Number 11

Main competitors(s): Aeon , Daiei, Uny

Strengths Weaknesses
1. Non-food ranges. 1. Has failed to meet opening targets.
2. Innovative merchandising. 2. Has not effectively targeted
Japanese shoppers.
Opportunities 3. Lack of localised sourcing.
1. Acquisitions/partnerships.
Threats
1. New store sites are hard to come by
2. Wal-Mart is taking control of Seiyu.
3. Difficult deflationary economy.
4. Market exit?
 Analysis By Country: Malaysia

Carrefour’s status: Number 4

Main competitors(s): Dairy Farm, Aeon, Store Corporation

Strengths Weaknesses
1. Non-food ranges. 1. Slow progress in opening units.
2. Innovative merchandising. 2. Own-brands yet to be introduced on
any real scale.
Opportunities 3. Lack of localised sourcing.
1. Buying up or leasing existing
properties. Threats
2. Implementation of private label 1. Robust local and international
programme. competitors.
2. Increasingly protectionist
government.
 Analysis By Country: Singapore

Carrefour’s status: Number 7

Main competitors(s): NTUC Fairprice, Dairy Farm, Delhaize

Strengths
1. Operations are now profitable.
2. Attractive hypermarket with
typically high merchandising
standards.
Weaknesses
1. Comprehensive failure to meet initia
growth targets of six years ago.
2. Has remained stalled on a single
store.

Opportunities Threats
1. Opening of smaller stores. 1. Shortage of suitable land and
2. Acquisitions of/partnerships with development sites.
local businesses. 2. Market exit?
 Analysis By Country: South Korea

Carrefour’s status: Number 3

Main competitors(s): Nongshima, Shinsegae, Lotte

Strengths
1. Sophisticated hypermarket format
that compares well with indigenous
stores.
2. Has achieved rapid expansion.
Opportunities
1. Continued store opening.
2. Discount-focused rivals suggest the
possibility of an upmarket
supermarket operation in larger
cities – launch of Champion?
Weaknesses
1. Occasional legal brinkmanship.
2. Has failed to exert a damaging
impact on local competitors.
Threats
1. Wal-Mart and domestic competitors
will provide a stiff challenge.
2. Economic problems could cause a
flight to value retailers.
 Analysis By Country: Taiwan

Carrefour’s status: Number 2

Main competitors(s): Ito-Yokado, Auchan, Casino

Strengths Weaknesses
1. Leading hypermarket business in 1. Has lost out on some potential sites
Taiwan. to Auchan.
2. Has tailored its offer well.
Threats
Opportunities 1. Casino and Auchan will be
1. Opening schedule looks both challenging for locations.
optimistic and achievable.
2. Could pick up some smaller
operators.
3. Discount stores could be an option.
 Analysis By Country: Thailand

Carrefour’s status: Number 4

Main competitors(s): Tesco, Casino, Ito-Yokado

Strengths
1. Large stores, wide ranges and
distinctive Carrefour panache.
2. Local goods have encouraged local
appeal.
Opportunities
1. Geographic expansion.
2. Supermarket and discount store
development in the face of strong
hypermarket competition.
Weaknesses
1. Over reliant on Bangkok market.
2. Seems to have let Casino and Tesco
set the pace.
Threats
1. Thai government is appearing much
less friendly to large foreign retailer
Africa & Middle East
 Analysis By Country: Egyp

Carrefour’s status: N/a

Main competitors(s): Metro (Egypt), Ragab Sons, Alfa Market

Strengths Weaknesses
1. Could easily become market leader 1. Has taken longer than expected to
with a single store. open first store.
2. Egypt’s only true hypermarket
operator. Threats
3. Franchise deal is fast track to local 1. Sainsbury’s exit demonstrates a
knowledge. certain local wariness of foreign
retailers.
Opportunities 2. Egypt is a difficult economic, politica
1. Egypt would be receptive to Dia and and social environment.
Champion.
2. Up to 15 hypermarkets could be
trading.
3. Acquisitions/ joint ventures.
 Analysis By Country: Oman

Carrefour’s status: Number 1 (tbc)

Main competitors(s): Various

Strengths Weaknesses
1. Market leader in modern distribution. 1. Long-winded process between
2. Only hypermarket operator in the planning and opening of store.
country.
3. Has local partner with local Threats
knowledge. 1. Very limited scope for further stores

Opportunities
1. One or two more hypermarkets.
2. Launch of supermarkets.
 Analysis By Country: Qata

Carrefour’s status: Leader

Main competitors(s): Various

Strengths Weaknesses
1. Only hypermarket operator in the 1. Has yet to fully adapt to local marke
country. conditions.
2. Has proven popular with locals and
international shoppers alike. Threats
3. Run by local franchise partner who 1. Extremely limited potential for more
knows market. stores.

Opportunities
1. Development of additional
products/services.
 Analysis By Country: Tunisia

Carrefour’s status: Number 1

Main competitors(s): Casino, Touta, Magro

Strengths Weaknesses
1. Market leader. 1. Demand largely dependent on Tunis
2. Brave market entry supported by JV
partner. Threats
3. High quality store with sizeable 1. Market may not be able to support
customer base. many more outlets.

Opportunities
1. Broadening of store’s appeal through
expanded product/ service ranges.
 Analysis By Country: Turkey

Carrefour’s status: Number 3

Main competitors(s): Migros Türk, Bim, Tansas

Strengths
1. Rapidly developing three distinct
formats.
2. JV partner can offer significant
financial backing as well as market
intelligence.
3. Can offer Western-style goods to
appeal to younger Turkish shoppers.
Opportunities
1. Massive scope for store openings.
2. Possible link up with existing Turkish
retailers.
Weaknesses
1. Has arguably focused too heavily on
price rather than quality and
differentiation.
2. Disappointing progress in Champion
openings.
Threats
1. Already strong competition in
hypermarkets (Migros, Yimpas etc)
and discount stores (Bim).
2. Tesco looks set to offer more
competition.
 Analysis By Country: UA

Carrefour’s status: Leader

Main competitors(s): Giant, Choitram, Shop N Save

Strengths Weaknesses
1. Clear market leader. 1. Store openings have slowed.
2. Impressive stores set in decent
shopping centres.
Threats
Opportunities 1. Limited market size suggests that
1. High per capita spending should lead further growth will be more difficult
to decent profitability. to achieve.
2. Despite country’s wealth, discount
stores could succeed.
 Prospects and Strategy (1/2

Carrefour is now focusing on its three core formats – hypermarkets,

supermarkets and discount stores.

Dia discount stores in particular are now seen as a key driver for Carrefour
future growth. Given the success of the Dia format with its high profitability
levels, it is not surprising that Carrefour is placing more emphasis on the
discount banner in order to grow internationally.

In more developed markets such as Europe, becoming a multi-format

retailer is taking on more importance as legislation, particularly in Europe,
plays against opening large hypermarkets.

In Europe, growth is going to come from the emerging markets of Eastern

or Central Europe. Carrefour already has operations in Romania, Poland and
the Czech and Slovak Republics to which other formats could be added in
the future. Carrefour has also been rumoured to be considering entry into
Bulgaria and/or Russia. However, as in the rest of Europe, competition
within these markets is intensifying.

Future growth is therefore increasingly going to come from more

developing markets, especially South America and Asia.
 Prospects and Strategy (2/2

Despite the economic downturn in the region, Carrefour is still committed t

pursuing further expansion in South America. In fact, various opportunities
are likely to present themselves in the acquisition of more vulnerable local
players. It seems likely for example that the company will acquire the 200-
strong Eki chain in Argentina.

Expansion into the Asian market is now top priority, as it is believed that
this region offers the largest opportunities for growth. Carrefour is
particularly bullish about its prospects in China, where it is soon planning t
introduce its Dia discount store format.

Carrefour has proved itself especially adept at entering developing markets

at an early stage. Carrefour’s approach is usually to establish a chain of
hypermarkets and develop a range of own brands, and then introduce its
supermarket or discount store formats. This gives Carrefour first-mover
advantage in many markets.

Carrefour has hypermarket-only operations in 22 countries. Therefore there

is the opportunity in many of these markets to expand its operations to
include supermarkets and discount stores.

Possibility of a major acquisition in a more developed market – there has

been speculation regarding a possible return to the UK or USA.

Strengths
• World’s second largest retailer.
• Most internationalised retailer.
• Dominant (top three) position in 17
out of 31 markets.
• World leader in hypermarkets.
• European leader in supermarkets.
• World’s sixth largest discounter.
• Early mover into many emerging
markets.
• Strong brand in many markets.
• Enviable own-label portfolio.
SWOT Analysis (1/2
Weaknesses
• Has consistently underachieved its
own ambitious growth targets in
many countries.
• Failed to live up to pre-merger
expectations in terms of projected
benefits.
• Still has an unwieldy portfolio of
stores in some countries – e.g. Franc
and Belgium.
• E-commerce development has been
lacklustre.
• Dearth of local
management/expertise in some
markets.

Opportunities
• Organic expansion in existing markets.
• Acquisition of vulnerable local players.
• Entry into new markets, especially in
Asia and South America.
• Possible entry into selected Eastern
and Central European markets.
• Launch and expansion of supermarket
and discount store operations in
markets where it already has
hypermarkets.
• Possible major acquisition in more
mature market.
SWOT Analysis (2/2
Threats
• Continuing intensification of
competition within more developed
markets, especially in Europe.
• Economic problems in South America
may lead to downturn in trading
environment.
• Ambitious international expansion
plans of major rivals such as Wal-
Mart and Tesco.
• Greater legislation in emerging
markets to limit influence of foreign-
owned large stores.
• Potential hostile takeover due to low
share price.