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Carrefour SWOT & PESTLE Analysis

ID : 5280353| Mar 2018

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

SWOT
PESTLE
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

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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.

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Carrefour SWOT and PESTLE analysis has been conducted by and reviewed by senior analysts from Barakaat Consulting.

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Carrefour SWOT & PESTLE Analysis
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