carrefour case study
RETAIL INNOVATIONS CASE STUDY
Carrefour: Hypermarket
Reinvention
Carrefour's approach to revitalizing its hypermarket format and key action points for retailers looking to improve their large format store sales
Reference Code: CM00028-002
Publication Date: December 2010
OVERVIEW
Summary
Verdict's Retail Innovations case studies are new for 2010. Each profile provides an evaluation of a company that stands out due to a set of unique characteristics, or a particular strategic initiative. In this case study, Verdict examines Europe's largest retailer, Carrefour, and its effort to revive sales growth at its hypermarkets across its key European markets.
In 1963, French company Carrefour invented the hypermarket format, an entirely new store concept where almost everything could be sold under a single roof, from groceries to clothing and electricals. Carrefour has since grown to become the second largest retailer in the world and by 2009, sales from hypermarkets accounted for 52.5% of turnover in its core domestic market. However, in recent years the format has started to struggle, resulting in Carrefour pursuing several different routes to achieve sales growth, including implementing new initiatives to reinvent the ailing hypermarket.
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This brief explores the reasons behind the fall of the hypermarket in Europe, the need for Carrefour to ensure the survival of the format, and the strategies Carrefour is adopting to reinvent the concept that helped it to rise to the top. Importantly, it also provides action points for grocers and other retailers looking to revive their own large format stores.
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In its examination of Carrefour's approach, this brief will focus on the following areas: demographic influences, hypermarket sales across Europe including like-for-like sales and sales densities, branding, instore layout, focus areas across food and non-food categories, private label, new instore services and its approach to convenience
Carrefour: Hypermarket
Reinvention
Carrefour's approach to revitalizing its hypermarket format and key action points for retailers looking to improve their large format store sales
Reference Code: CM00028-002
Publication Date: December 2010
OVERVIEW
Summary
Verdict's Retail Innovations case studies are new for 2010. Each profile provides an evaluation of a company that stands out due to a set of unique characteristics, or a particular strategic initiative. In this case study, Verdict examines Europe's largest retailer, Carrefour, and its effort to revive sales growth at its hypermarkets across its key European markets.
In 1963, French company Carrefour invented the hypermarket format, an entirely new store concept where almost everything could be sold under a single roof, from groceries to clothing and electricals. Carrefour has since grown to become the second largest retailer in the world and by 2009, sales from hypermarkets accounted for 52.5% of turnover in its core domestic market. However, in recent years the format has started to struggle, resulting in Carrefour pursuing several different routes to achieve sales growth, including implementing new initiatives to reinvent the ailing hypermarket.
•
This brief explores the reasons behind the fall of the hypermarket in Europe, the need for Carrefour to ensure the survival of the format, and the strategies Carrefour is adopting to reinvent the concept that helped it to rise to the top. Importantly, it also provides action points for grocers and other retailers looking to revive their own large format stores.
•
In its examination of Carrefour's approach, this brief will focus on the following areas: demographic influences, hypermarket sales across Europe including like-for-like sales and sales densities, branding, instore layout, focus areas across food and non-food categories, private label, new instore services and its approach to convenience