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Xing Rui (Josie) Tang Siyang (Grace) Lin Zhihan (Chilly) Li Qinyue (Carol)

Xing Rui (Josie) Tang Siyang (Grace) Lin Zhihan (Chilly) Li Qinyue (Carol). Introduction. The Carrefour group: a world leader in distribution An international retailer promoting the growth of local economics. History.

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Xing Rui (Josie) Tang Siyang (Grace) Lin Zhihan (Chilly) Li Qinyue (Carol)

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  1. Xing Rui (Josie) Tang Siyang (Grace) Lin Zhihan (Chilly) Li Qinyue (Carol)

  2. Introduction • The Carrefour group: a world leader • in distribution • An international retailer • promoting the growth of local economics

  3. History • 1959:Carrefour was established. • 1960:The first Carrefour store opened and was an immediate success. • 1963:Carrefour established its first hypermarket. • 1970:The company went public. • In the 1970s-80s:International Growth

  4. In the 1990s:Carrefour continued growth • In the late 1990s and Beyond: Strategic Acquisitions • In 2008: Continuing growth in a challenging environment History

  5. Industry Analysis The exchange of food and weapon Traders Retail Industry Shops Stores(Specialty shops) Department store Shopping Centers and Malls

  6. Global Issue • China • India • Russia Emerging Markets

  7. China • Until 1990s, foreign retailers • began to be allowed in. • Largest City Second and third tier cities

  8. India • Wal-Mart: • The Announcement of Openness • Metro: • Planning to Corporate with • Local Government • Tesco: • A Successful entry

  9. Risks • Fierce competition with the • traditional trade. • Business management of • Retail Industry in emerging markets. • The counterfeit problem. • The transportation cost

  10. Future Trends • Recruiting local people • Approaching the market • Innovating

  11. Company Analysis --Strengths • Market leader • Brand recognition • Focus on competitive prices • --Weakness • Stagnant sales in France • Declining of profitability • Losses for on-line business

  12. Opportunities • Strong growth potential in Asia • New stores • Agreements with Coop Atlantique • Threats • Stiff competition from discount retailers in France • Increasing labor costs in Europe • Poor retailing outlook in the Eurozone

  13. Global Expansion • Win-win target: • both in France, and all subsidiaries • Encourage local economy

  14. Expanded Steps • Started as a family store • 1960s：nonfood business • OCCUPIED MARKETS: undeveloped countries Examples South America Paris

  15. Conducting Social Audits • Local Specialties • Labors: wages and hours

  16. Sustainability • Economic • Social • Environmental

  17. Purposes: goods quality and safety, time-efficiency

  18. New Departments • Retain the original architecture • Proper sites to build • Traffic jam vs. public safety • Urban • Rural

  19. Recruitment • SKILLED people • Fair ranking management • Training and motivation • Men and women • Local and expatriate staff

  20. Competitors • Tesco • Metro • Wal-Mart

  21. Tesco ----Every shopper needs every little help • The fourth largest global retailer • The first movement among the top • The humanistic care • The most potential competitor Korean Market

  22. Metro Group • NO.1 in German Retailer Market • Media Markt, Saturn: Electronic Retailers • Metro Cash & Carry: No credit account • Real (including Extra), GaleriaKaufhof • Experiences in self-service wholesale

  23. Wal-Mart • The largest one in the world’s retail industry • In 1990, beating Sears and K-Mart • The most significant reason for • customers’ shopping there----Low Price

  24. Chinese Markets’ competition between two giants • The 100th store in China in 2007 • Quick Expansion---from metropolis • to central and western of China. • Local Product Sourcing • Flexibility and Creation

  25. Short-term Recommendations • Experienced Employees • Local specialists vs. Expatriate staff • Political involvement • Political inclination caused to profit crisis (China)

  26. Long-term Recommendations • Improving company's image • Making more effort on global expansion

  27. On track to attain 2008 objectives • Continuing and deepening action plan • Carrefour well positioned to continue growing in a challenging environment • Essentially a food retailer • Multi-format • Increasingly international • Solid debt profile Conclusion

  28. Thanks !

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