Carrefour SWOT & PESTLE Analysis

Strength

1. Multi format Strategy: Carrefour boosted its multi-format model with a focus on the development of convenience stores which included renovating stores, expanding and developing new formats. By the end of 2017, the Group has about 7300+ convenience stores. Further, Carrefour is renovating its supermarkets by adapting its offering to the local area in every country where it operates.

2. Strong digital platform and customer experience: The relationship between Carrefour and its customers is regularly enriched by an omni-channel approach. The Group has a range of solutions for shopping online at any time, collecting purchases in-store or at a drive, or having them delivered, as well as numerous services to make shopping easier, more efficient and even more fun.Carrefour offers its customers a wide range of solutions for ordering, delivery or collection.

3. Good products at best prices: Carrefour works to guarantee the best value for money on national brand products, and rolls out a wide range of own-brand products, which are as affordable as possible. To offer the best choice at the best price, Carrefour relies on the expertise and operational excellence of its employees at all stages of the product lifecycle.

Weakness

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Opportunity

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Threat

1. Fluctuating foreign exchange rates: Unfavorable exchange rates and difficult conditions in home market had an adverse effect on the profits in the past few quarters.Fluctuation in currency prices are due to various economic factors and political uncertainty and may significantly impact profitability of Carrefour.

2. Increasing competition from discount retailers: Competition in the hypermarket industry is fierce both from small stores as well as other hypermarkets. Therefore, hypermarkets are continuously lowering their prices and developing new ideas to make them stronger, tougher, and better than its competitors. Carrefour faces intense competition from players such as Leclerc, which has already has overtaken Carrefour as France's biggest grocer by market share in 2017. Other players such as Lidl and Intermarché are also gving tough competition to the bigger players such as Carrefour.

Political

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Economic

1. Uncertain economic growth in France: The French economy grew 1.9 percent in 2017, which was one of the best growth cycles since 2011; however the growth is still lagging the euro-zone average and unemployment remains above 9 percent as of early 2018. Carrefour has a major exposure to slow-growing Europe and its home country France. France alone accounts for close to 50% of Carrefour’s sales, and the company has been losing market share to cheaper rivals and discounters such as Leclerc and Aldi as consumers look to save more. The company is majorly banking on an economic turnaround to increase its sales and market share.

2. Exposed to volatile currency movements: Carrefour is exposed to exchange rate fluctuations with 53% of its sales outside France.Major Asian currencies are expected to remain weak over 2018, which is a cause of concern for the company as China and South East Asia constitute major focus markets for Carrefour.

3. Strong contribution to domestic economy: Contribution to the local economy demonstrates commitment of an organization to the country and its people. Carrefour gives priority to recruiting local people and imparts them with the required training as per the organizational standards. Carrefour Group has established itself as one of the most preferred private employers not only in its home country France but also in other countries such as Brazil, Argentina and Italy. The company also establishes local supply chains so as to outsource food products from local suppliers as much as possible. An average of 73% of all food products sold in Carrefour come from local suppliers in the country of its operation. These initiatives have helped Carrefour establish a strong presence in its markets and allowed it to contribute meaningfully to the local economies.

Social

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Technological

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Legal

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Environmental

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