COMPANY PROFILE -Carrefour
Business Sector :Retail, Food and Grocery Retail
Operating Geography :Europe, France, Global
About Carrefour :
Carrefour is a French multinational retailer headquartered in Boulogne Billancourt, France, in the Hauts-de-Seine Department near Paris and was established in 1958 by Marcel Fournier, Denis Defforey and Jacques Defforey. The name Carrefour means “crossroads” in French. It is one of the largest supermarket chains globally, operating nearly 12,300 stores and e-commerce sites in more than 30 countries, in Europe, the Americas, Asia and Africa as of 2018. The group employed more than 380,000 people as of 2017. It believes in continuous innovation and is the recipient of ‘2017 Open innovation awards.’
Carrefour’s mission is “Doing our job well” with a vision “To become the benchmark in modern retailing in each of our markets. We aim to offer our customers the best price and the best merchandise, in every store, in every country.”
Carrefour Revenue :
€ 104.4 billion (FY ending Dec 31st2016), € 88.24 billion (FY ending Dec 31st2017)
Competitive Analysis of Carrefour
The SWOT analysis for Carrefour is presented below:
Strengths | Weaknesses |
1. Multi format Strategy
2. Strong digital platform and customer experience
3. Good products at best prices
| 1. Poor performance in own brand products
2. Weak performance in Asian markets
|
Opportunities | Threats |
1. Growth in emerging markets
2. Usage of big data analytics
| 1. Fluctuating foreign exchange rates
2. Increasing competition from discount retailers
|
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Detailed SWOT Analysis of Carrefour
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
This section is available only in the 'Complete Report' on purchase.
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.
The PESTLE/PESTEL analysis for Carrefour is presented below:
Political | Economical |
1. Unstable political environment in major markets may impact retailers such as Carrefour | 1. Uncertain economic growth in France
2. Exposed to volatile currency movements
3. Strong contribution to domestic economy
|
Social | Technological |
1. Organic food and reformulations bringing up new opportunities
2. Digitization in retail set to simplify the lives of customers
| 1. Omnichannel strategies to drive growth and customer experience |
Legal | Environmental |
1. Strong compliance framework across the supply chain
2. Changing regulations increase difficulty of doing business
| 1. Sustainable development approach through range of initiatives
2. Anti-food waste initiatives
|
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Detailed Pestle Analysis of 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
This section is available only in the 'Complete Report' on purchase.
Technological
This section is available only in the 'Complete Report' on purchase.
Legal
This section is available only in the 'Complete Report' on purchase.
Environmental
This section is available only in the 'Complete Report' on purchase.
On purchase the Carrefour SWOT & PESTLE Analysis PDF report will reach you within minutes. At rare times, a slight delay not exceeding 1 hour might be caused.
TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
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