Carrefour in the French translation of Greek word means plaza, or the marketplace. In the year of 1959, Carrefour was established in France of a town called Annecy by Marcel Fournier and Louis Defforey. Both of the founders are come from successful, enterprising families, who want to develop their own business by building large supermarkets. Marvel Fournier has set up a department store Grand Magasin de Nouveautés Fournier d'Annecy and have close relation with the Casino supermarket company, whereas, Louis Defforey was the president of Badin-Defforey in Lagnieu(worldretailcongress.com, 2002). The first Carrefour store concept in 1959 was aim to build a convenient market place for the citizen, the building was construct with the ground floor as the supermarket, while the floor above containing apartments, were to be sold to help financing the business. The expansion for Carrefour continue increasing in 1960’s, the business has increase 45% between 1961 and 1962 which is after the main department store was establish. The success came from its decentralization of power, low prices and equipment cost, and the speed rotation of stocks. The company have a strong impact on small businesses due to the high inflation rate in 1960’s affected the consumer buying power and benefits Carrefour with low price strategy. Carrefour international growth in the 1970s to 1980s was cooperate with other companies in Europe, in this international expansion, Carrefour marketing the local product in the local store instead of import product from French. Carrefour localisation initially develops new stores through joint venture and partnership with the local retailer, this action consequently lead over the competitors in the following years and has established more hypermarkets in France. Besides that, Carrefour continue its successful policy of decentralisation by providing autonomy to each department head and continued to focus on long-term results rather than immediate successes. For example, Carrefour introduced its own brands as a low-cost alternative but still focus on its quality. Carrefour knows that only quality and price could build the long-term relationship with consumer. In the early 1990s the member of founding families has leaved the company’s active direction and has formed an advisory council. The company continue to expand in foreign markets and partnership with other local company, in the mid of 1990s Asia region has provided another good opportunity for Carrefour’s international expansion. In 1996, the company first established store in Asia was Seoul, South Korea, and it has also open more stores in different part of Asia in 1997 and 1998 With the discount strategy has helps Carrefour to fight over recession and partnership with the local retailer has help Carrefour to overcome some government regulations and continue expanding the company internationally.
2.0 Carrefour recent expansions
In these few years, Carrefour has expanded the company internationally to aim for better opportunity and profitable option. The recent expansion in the past few years was in the Europe and Asia region, Carrefour open more hypermarkets and supermarkets on these region to maintain their growth and attain their goal in each region. Throughout the expansion, there are successful and failed international expansions. Successful expansion like Europe China and etc, are due to the careful planning and how Carrefour adapt into the country whereas the failed expansion may some due to the cultural different and different environment like Japan. 2.1 Successful Expansions in Europe and China
Amongst the most successful expansions conducted by Carrefour was Europe and China. Carrefour emphasized on its self-service concept with “everything under one roof” as a main attractive feature for a large scale hypermarket combined together with a variety of grocery store formats which include supermarkets, hard discounts and convenience stores....