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    Carrefour

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    Aniruddha Bhowmik
    Carrefour began in 1960 in France and pioneered the hypermarket retail format, becoming Europe's largest retailer and the second largest worldwide. It has expanded internationally through a "glocal" approach of adapting its hypermarket model to local markets. By 2011 it operated in over 30 countries across Europe, Latin America, Asia, and Africa, with over 475,000 employees. Its continued international expansion focuses on emerging markets with growing middle classes attracted to its one-stop shopping concept.

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    Carrefour

    Uploaded by

    Aniruddha Bhowmik
    494 views5 pages
    Carrefour began in 1960 in France and pioneered the hypermarket retail format, becoming Europe's largest retailer and the second largest worldwide. It has expanded internationally through a "glocal" approach of adapting its hypermarket model to local markets. By 2011 it operated in over 30 countries across Europe, Latin America, Asia, and Africa, with over 475,000 employees. Its continued international expansion focuses on emerging markets with growing middle classes attracted to its one-stop shopping concept.

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    Carrefour began in 1960 in France and pioneered the hypermarket retail format, becoming Europe's largest retailer and the second largest worldwide. It has expanded internationally through a "glocal" approach of adapting its hypermarket model to local markets. By 2011 it operated in over 30 countries across Europe, Latin America, Asia, and Africa, with over 475,000 employees. Its continued international expansion focuses on emerging markets with growing middle classes attracted to its one-stop shopping concept.

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    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    494 views5 pages

    Carrefour

    Uploaded by

    Aniruddha Bhowmik
    Carrefour began in 1960 in France and pioneered the hypermarket retail format, becoming Europe's largest retailer and the second largest worldwide. It has expanded internationally through a "glocal" approach of adapting its hypermarket model to local markets. By 2011 it operated in over 30 countries across Europe, Latin America, Asia, and Africa, with over 475,000 employees. Its continued international expansion focuses on emerging markets with growing middle classes attracted to its one-stop shopping concept.

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    of 5

    INTERNATIONAL RETAILING

    Opening Case study


    The internationalization of Carrefour In 1995 the Fournier and Defforey families established the Carrefour company. A few months later, in 1960, the company opened its first supermarket in Annecy, Haute Savoie. In 1963, Carrefour invented the hypermarket- a totally new retail format- in Sainte Genevieve des Bois, with a floor area of 2500 sq.mtrs. twelve checkouts, and free parking space for 450 cars. The Hypermarket concept was innovative, and revolutionized the way French people did their shopping. It moved daily shopping from small stores to massive stores where customers found everything they wanted under one roof. The first Carrefour hypermarket had opened in 1963 and by 2003 Carrefour had become the leading retailer in Europe and the second largest worldwide. Over the past 40 years, the Carrefour group had grown to become one of the worlds leading distribution groups. The worlds secondlargest retailer and the largest in Europe, the group currently operates four main grocery store formats: hypermarkets, supermarkets, hard discount and convenience stores. In 1996 Carrefour opened its first hypermarket store outside France, in Belgium. Although French consumers welcomed the hypermarket concept, smaller stores lobbied against the spread of hypermarket stores in the late 1960s and early 1970s, and in 1973 the French legislature introduced the Royer Law, which restricted introduction of hypermarkets. Carrefour expanded internationally by first moving to neighbouring European countries: Switzerland in 1970, Britain and Italy in 1972, and Spain in 1973. However, Carrefour soon started focusing mainly on southern European and Latin American countries where the distribution system was not yet modernized. In 1975 it expanded its format outside Europe, to Brazil. Carrefours internationalization strategy further accelerated in the 1980s and 1990s (See Exhibit 1) Carrefours international strategy is based on the hypermarket format with local adaptability- the glocal method. For example, while the store format is the same anywhere around the world, the company sells hot meals to European customers and has sushi bars in most Asian countries. The success of Carrefours export of its hypermarket concept is due to its careful choice

    of countries and to its ability to adapt its format to local business environments. A close look at Exhibit 1 will show that most countries are emerging economies with a growing urban middle-class population that find the hypermarket concept appealing. The international concept of Carrefour is based on: Universal appeal: People in major cities prefer to do their entire shopping under one roof. Carrefours logic is based on the belief that choice, self-service, free parking and low prices have universal appeal. Glocal innovation: Each hypermarket around the world is expected to keep reinventing itself to meet the demands of local customers. For instance, the company has recently introduced organic food in France, optical shops and tyre fitting in Taiwan, and petrol stations in Argentina.

    As shown in Exhibit 1, different formats are present in different countries. While the hypermarket model is the only format in emerging economies in South America (with the exception of Brazil and Argentina) and Asia, different formats exist in European countries. This is mainly due to planning restrictions on building hypermarkets in Western European countries and the growth through acquisition of small outlets. In addition, in contrast to its standard entry mode by ownership, Carrefour entered several countries- the United Emirates, Madagascar, Qatar, Romania, the Dominican Republic, Tunisia-through a franchise partnership. Carrefour offers shopping online in several countries (France, Spain, Belgium, Turkey and others). Wide selections of services - such as home delivery and in-store or in-warehouse collection - are available to customers, varying from country to country. With over 475,000 employees, 140,000 of them in France, the Carrefour group ranks among the top 7 private employers in the world. A pioneering entrant in countries such as Brazil (1975) and China (1995), the group currently operates in three major markets: Europe, Latin America and Asia. With a presence in 34 countries, over 57% of group turnover derives from outside France. The group sees strong potential for further international growth in the future, particularly in such large national markets as China, Brazil, Indonesia, Poland and Turkey.

    Exhibit 1 International development of Carrefour

    Yea r 199 6 197 3

    Country and mode of entry

    Number of stores

    Format 60(HM),423(SM)

    Belgium-Carrefours 483 first hypermarket outside France Spain: under the store 3,098 Pryca banner. In 1979 it introduced the hard discount store in Spain Brazil Argentina Taiwan-the Asia Italy Turkey Mexico Malaysia China Thailand Korea Hong Kong first 193 300 in 32 912 32 17 6 23 10 15 2(in1988)

    117(HM),180(SM),2239(HD), 532(SCS), 30(CC)

    197 5 198 2 198 9 199 3 199 3 199 4 199 4 199 5 199 6 199 6 199 6

    69(HM), 124 (SM) 22(HM), 133(HD), 145(SM) HM 38 (HM), 288(SM), 532(CS), 9 (C&C), 47 (FF) 7 (HM), 25 (HD) HM HM HM HM HM HM

    199 7 199 7 199 8 199 8 199 8 199 9 200 0 200 1 200 2 200 3 200 4 200 5 200 6 200 7 200 8 200

    Poland Singapore Chile Colombia Indonesia Czech Republic Greece Tunisia, Romania

    16 1 2 2 7 5 313 Tunisia-3 Romania-64

    7(HM),27 Global (SM) HM HM HM HM HM 14(HM),133(SM),166(HD) 1HM,2SM 32HM,32SM 4HM,5SM 1HM 11HM Closed 7HM,8SM 1HM,3SM 2HM 1HM 5HM

    Egypt Oman Saudi Arabia Algeria Cyprus Jordan, Kuwait

    9 1 11 Closed 15 Jordan-4 Kuwait-2

    Bahrain Bulgaria

    1 5

    9 201 0 201 1 Azerbaijan, India 1-India 6- Azerbaijan Iraq 5 India-1C&C Azerbaijan-3HM,3SM -

    Note: HM = Hypermarkets, SM= Supermarkets, HD = Hard discount, CS= convenience store, C&C = Cash and carry, EC= E-commerce. 1 Source: Adapted from Carrefour website on April 16, 2011

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