Success of Carrefour

Topics: Carrefour, Wal-Mart, Hypermarket Pages: 8 (2888 words) Published: April 17, 2013
1. Introduction
As the world leader in retail industry, the Carrefour Group, through over fifty years of dedicated efforts, is now the largest retailer in Europe and second largest in World. Since established, through a process of merge and acquisition, Carrefour has already expanded its market to different retail scales around the global, which includes hypermarket, supermarket, cash&carry and convenience stores. According to the financial report of Carrefour group, by the end of 2012, it had already generated 101.3 million Euro of sales under banners. Moreover, it opened 9,994 stores from different scales in 33 countries globally. Therefore, it is not surprise to find it has over 100 million customers world widely. Carrefour has its clear mission adapting different cultures, which includes to promote quality for everyone and ensure the safety of its products, meet all the expectations of customers and to provide customers with freedom to choose with specific ranges of Carrefour products. On the way to accomplish their mission, marketing strategy are implemented orderly by Carrefour group. As Cambra-Fierro and Ruiz-Benítez (2011) illustrate in their research, the basic strategy of Carrefour is making this brand globalized, through establishing as its main axes on the client and a full local adaptation and integration. No matter where Carrefour expands to, the commitment to local economic environment is an unchangeable strategy for Carrefour. Carrefour is also famous for training local staff and manager which can adapt to native environment more quickly. According to the key figures of Carrefour, it now has 360,000 employers world widely, and these employers are naturally sensitive to local consumer behavior. It is evident that Carrefour obtain a huge success in China since it was embrace by As statistics shown in Chuang ,Wei, Donegan, & Ganon’s report(2011), by 2009, Carrefour ranked 7th among all chain stores in China with CNY¥36,600m in sales.

When people are applauding for Carrefour’s victory, the whole retail industry is wondering the reason behind its success. Therefore, this proposal is aiming at illustrating a framework with the case of Carrefour, investigate the reasons contributed to its huge success, and detect whether this model is applicable to the whole industry and make the whole retail sector better off.

2. Brief History of Carrefour
The Carrefour Company was created by the Fournier and Defforey families in 1959. In 1960, the first Carrefour supermarket was opened in Annecy, a city in eastern France that had become increasingly industrialized since World War II. From this first outlet, Carrefour changed itself into a worldwide entity with more than 15,600 stores spanning 34 countries around the globe. Between 1961 and 1962, business at Carrefour increased 45 percent and salaries increased as well. In 1963, Carrefour created a new shop concept known as the hypermarket. In 1970,Carrefour went public and Carrefour shares were listed on the Paris stock exchange. In 1976, Carrefour introduced its own production under no label. They assured that “Just high quality product for low price”. Between 1978 and 1982, the greatest number of new Carrefour stores was established outside of France, especially in Latin countries. Profits proved high at its stores in Brazil, Argentina, and Spain. In the 1990s, expansion in Central and South America was extremely strong. Carrefour moved into Mexico in 1993 and opened the first chain hypermarket. By 1997, Carrefour operated about 60 stores in South America and was generating $7 billion in sales in Brazil and Argentina. In 2000, Carrefour merged with Promodès SA to become the largest European food retailing group (second largest worldwide). Carrefour also became Europe's leading operator of supermarkets, convenience stores, discount stores, cash-and-carry outlets, and hypermarkets. With more than 8,800 stores in 26 countries and revenues of nearly $65...
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