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Introduction of the Case:
Carrefour was the second largest retailer of consumer goods and groceries worldwide, after Wal-mart. The company pioneered the concept of hypermarket in their home
Country, France, as early as 1960’s.However, towards late 1990’s; Carrefour saw a decline in their French hypermarkets owing to certain unfavorable government regulations and competition from hard discount stores. Carrefour introduced a series of strategic initiatives in an effort to revamp the ailing French hypermarkets. As a result,
French hypermarkets started showing signs of recovery towards late 2004. The case discusses about the emergence and growth of hard discount stores in France. This case also provides scope for discussion of decline of Carrefour’s French hypermarkets and its revamp strategies.
Pedagogical Objectives:
· The state of Hard discount stores in France
· Impact of government regulations on French retail industry
· Growth of Carrefour’s hypermarkets in France
· Revamp strategies of Carrefour hypermarkets in France.
1. How should Mr. Durant assess the opportunities in various countries around the world?
Mr. Durant, the new CEO since 2005, embarked on the new strategy by offering 15 percent new products in its hypermarkets and 10 percent in its supermarkets. Moreover, he wants to employ more staff, extend the operating hours in certain hypermarkets, cutting prices, trying small stores, and pushing down decision making. Mr. Durant aims to stay only in countries where Carrefour is among the top retailers.
2. Should Carrefour adopt Wal-Mart's strategy of "low prices everyday"? What would be the advantage or disadvantage of such a strategy?
Yes Certainly they have to adopt the strategy of low pricing every day, In France, where
Carrefour is well established, the company made the big mistake in its pricing policy. It probably started with the 1999 merger with Promodes, the French discount chain.
Carrefour confused the French clientele
Carrefour was the second largest retailer of consumer goods and groceries worldwide, after Wal-mart. The company pioneered the concept of hypermarket in their home
Country, France, as early as 1960’s.However, towards late 1990’s; Carrefour saw a decline in their French hypermarkets owing to certain unfavorable government regulations and competition from hard discount stores. Carrefour introduced a series of strategic initiatives in an effort to revamp the ailing French hypermarkets. As a result,
French hypermarkets started showing signs of recovery towards late 2004. The case discusses about the emergence and growth of hard discount stores in France. This case also provides scope for discussion of decline of Carrefour’s French hypermarkets and its revamp strategies.
Pedagogical Objectives:
· The state of Hard discount stores in France
· Impact of government regulations on French retail industry
· Growth of Carrefour’s hypermarkets in France
· Revamp strategies of Carrefour hypermarkets in France.
1. How should Mr. Durant assess the opportunities in various countries around the world?
Mr. Durant, the new CEO since 2005, embarked on the new strategy by offering 15 percent new products in its hypermarkets and 10 percent in its supermarkets. Moreover, he wants to employ more staff, extend the operating hours in certain hypermarkets, cutting prices, trying small stores, and pushing down decision making. Mr. Durant aims to stay only in countries where Carrefour is among the top retailers.
2. Should Carrefour adopt Wal-Mart's strategy of "low prices everyday"? What would be the advantage or disadvantage of such a strategy?
Yes Certainly they have to adopt the strategy of low pricing every day, In France, where
Carrefour is well established, the company made the big mistake in its pricing policy. It probably started with the 1999 merger with Promodes, the French discount chain.
Carrefour confused the French clientele