About CARREFOUR Type Founded Headquarter Industry Products
Revenue Operating income Profit Employees
: Public (Euronext :CA) :1957 :Levallois- perret, France :Retail :Discount, Grocery and convenience stores, cash and carry, hypermarkets, supermarkets :€82.15 billion :▲ €3.338 billion :▲ €1.868 billion :490,042
MANAGEMENT Chairman of the management board and CEO :- José Luis Duran
Chairman of the supervisory board :- Amaury de Sèze Deputy Chairman :- Jean – Martin Folz
The are three specialized committees Within the Board of Directors: The accounts & internal audit committee. Committee members are: - Jean- Martin Folz (Chairman), - Sébastien Bazin, - René Brillet. The remuneration, appointment & corporate governance committee. Committee members are: - Anne-Claire Taittinger (Chairman), - René Abate, - Nicolas Bazire.
The strategy committee. Committee members are : - Amaury de Seze (Chairman), - Bernard Arnault - Sébastien Bazin, - René Brillet.
Summery Group Overview Business Strategy Financial Overview Key Credit Strength Competitors
Group Overview Carrefour Group Today Today Carrefour Group No 1 mass retailer in Europe & No 2 Worldwide Over 490042 colleague worldwide 12,547 stores in 30 countries More than 3 billion checkout transactions p/y th €36 billion market capitalization (10 largest in CAC40) Leader in10 countries
Group Overview 12,547 stores in 30 countries France: 3993 trade Name stores. Over-seas territories: 144 Trade name stores.
Europe:(exc france) 7,109 trade name stores
Asia: 465 trade Name stores
Group Overview Carrefour operates in 10 countries in Europe, representing 84% of group net sales of H1 2007. In 5 countries out of 10 carrefour is No 1.
It operates 3 countries in Latin America, accounting for 9% of group net sales of H1 2007. Carrefour is No 1 in 2 countries.
Group Overview It present in 6 countries in Asia, accounting for 7% of group net sales of H1 2007. In 3 countries out of 6 carrefour is No 1 in hypermarkets.
Group Overview
Group Overview Complementary multi-format retailers Hypermarkets: Offer the customer in single
location a wide array of food & non-food products(general merchandise, household pdt, entertainment pdt, etc) & service at competitive price.
"Choice and quality for everyone" An average of 80,000 items are offered in stores measuring 5,000- 20,000 sq meters with free parking. Trade name1163 stores including 74 franchise in 28 countries in Europe, Latin America & Asia. €50.9 billion in retail network sales.
Group Overview Supermarket:
Meet the needs of a convenience store customers who shops about every five days: a practical layout that saves time, quality fresh pdts, strong customer relation & competitive price. Stores generally have between 1,000- 2,000 sq meters of sales area and offer approximately 10,000 different items.
"The prices people want, close to home" Trade name:
2,708 stores in 9 countries in Europe & Latin America. €23.6 billion in retail network sales.
Group Overview Hard Discount Stores:
Offer a limited array of food pdts at unbeatable price in sales areas of between 300- 800 sq meters, with a large proportion of house brand pdts. "Grocery products at low, low prices" 6,166 stores in 7 countries in Europe & Latin America. Trade name: €5.7 billion in retail network sales.
Group Overview Convenience Stores: Neighborhood or
village stores offering a range of pdts covering all food needs at reasonable price & adapted to the convenience market. Any array of service generally offered. "Just what you need, right next door" Trade name: 3245 stores in 7 countries in Europe &Latin America
Group Overview
Cash & Carry:
Primarily wholesale and retail food self-service targeted at professional customers. "Proximity and accessibility for catering professionals" Trade name: , PuntCash 198 Stores. €7 billion in retail network sales.
Group Overview
e-commerce:
An on-line cyber market for internet shopping and home delivery. This site offers a broad range of over 6,000 products including 1,200 fresh pdts. Trade name:
Group Overview
Financial Overview Revenue Operating income Profit Market capital Shares outstanding Closely held shares Share type
:€82.15 billion :▲ €3.338 billion :▲ €1.868 billion : 24,033,667,785 :704,903,000 :100,721,864 :Actions ordinaires
Financial Overview
Stock data: Current Price(9/19/08): €34.10
Business Strategy Strategy: Profitable Growth
Business Strategy Strengthening the group’s position in its key market Hypermarkets:
acquire market share in a wide shopping zone & attract more customers with price that compete with the lowest in the market & regular promotion.
Supermarkets:
Increase store frequency rate & customer loyalty through card programs, the quality of a fresh pdts & attractive prices.
Hard Discount stores:
Adopt a highly centralized organizational structure & standard management & operating principle.
Business strategy Lever for value creation: Lever 1: Making the brand work harder & generating cash: strengthening commercial model, faster growth in m2(opening+expansion), annual operating cost reduction of 0.10% of sales, better management of capex & working capital. Lever 2: Optimizing capital allocation : further rationalization (€1.5 bn disposal program), continuous review of non strategic assets. Lever 3: Managing the balance sheet actively & leveraging property assets: free cash flow of €1.5 bn per annum, retain long term control of real estate subsidiary, capital rising of around €3 bn to strategic real estate institutional partner & IPO.
Business Strategy The customer at the heart of it all The carrefour group puts its customers at the heart of everything it does. It has simplified its organization, giving more independence to store managers to enable them to adapt their business. The carrefour group has expanded customers choice, adapted its store brand range and increased its service offering. For society “ say no to plastic bag”
Key Credit Strength Global food retailer with leadership position in Europe Substantial diversification through multi-format strategy and worldwide presence Significant international experience & presence with leadership in main market(e.g; France, China, Brazil etc) Strength & diversity of cash flow Stable A2/A credit rating recently affirmed by S&P and Moody’s Carrefour committed to A2/A
Competitors
(US) (UK) (Germany)
Thank You Presented by Barun Adak PGDM(2008-2010) ITS Ghaziabad Sec : B, Roll No- 17