Carrefour n Ov Overview Overv Car arre refou four: r:: A An O verview erv er v iew ie w January 2003
Overview Background Operations Sales By Format Carrefour arrefour By Country Sales Breakdow n By Region, 2002 Sales Breakdow n By Country, Country, 2002 Latest Major Developments Carrefo arrefour ur In Context ontext Leading Global Global Retailers’ Retailers’ Spread, 2002 Analysis By Country P rospects And Strategy Strategy SW OT Analysis
Main address address:: Carrefour arrefour S.A., A., BP 419-16, 75769 Paris Cédex Cédex 1 6 Avenue Raymond P oincaré, P aris 75116, France Tel: +33 1 53 7 0 19 0 0 Fax: +33 1 53 7 0 86 16 W ebsite: w w w .carrefour.com carrefour.com Carrefour Carrefour is the w orld’s second second largest retailer retailer in terms terms of sales. sales. Truly global player player w ith operations in over 30 countries. Major formats are hypermarkets, supermarkets and discount stores. W ell know n for entering and adapting adapting to emerging markets. Group turnover ( 2002 ): EUR85.6 billion Total number of stores (including franchises): 10,673 10,673
Carrefour Carrefour SA was first listed on the the French stock market in 1970. First opening stores stores in France France during during the the 1960s, Carrefour arrefour w ent on to to open the t he first hypermarkets in France and Europe. First started expanding into the rest of Europe in the early 1970 s and 197 0 At the same time the ED discount format w as introduced. The Carrefo arrefour ur own-label own-label w as intr i ntroduc oduced ed in 1985. 1985. The first non-European non-European store w as opened in Brazil Brazil in 1975. Carrefour's Carrefour's firs Asian store opened in Taiw Taiw an in 1989. Carrefour arrefour announced announced its its intenti intention on to merge with Promodès at the end end of August 1999 w ith the merger merger approved approv ed in January 2000. The Carrefour arrefour name was retained retained with the majority majority of Promodès stores st ores rebranded. rebranded. The merger pushes pushes Carrefour arrefour to second second place place in in global global retaili retailing. ng.
Carrefour Carrefour operates a diverse diverse portfolio of formats, formats, including hypermarkets, superm arkets, discoun t stores, cash & carries, c-stores and a number o f neighbourhood store form ats for independent retailers. P ioneer of hypermarket hypermarket format. All hypermarkets trade trade under the the Carrefou Carrefou banner w orldw ide. W ith the opportunities opportunities for hypermarket openings in developed markets slow ing, Carrefour’s Carrefour’s strategy strategy is to use the format format to establish itself itself in emerging markets around the w orld. Supermarkets Supermarkets trade under a variety variety of fascias, fascias, although Champion Champion is the most important. Discount Discount stores stores are are operat operated ed by Dia. Dia. Dia is now now seen as a key brand for Carrefour’ arrefour’s s future growth. growth. Given Given the the success success of the th e Dia format w ith its its hig profitability profitability levels, it is not surprising that that Carrefour Carrefour is placing placing more emphasis emphasis on the discount banner ba nner in order to grow internat international ionally ly – especially in South South Am erica and Asia. The strategy is to establish all these major form ats (hypermarkets, supermarkets and discount stores) in all countries.
Cash & Carries Carries 2% Supermarkets & Neighbourhood Stores 2%
Convenience Stores 5%
Discou nt Stores 6%
Foodservice 1% Franchised Stores 2%
Supermarkets 23 %
Independent Retailers 1%
Hypermarkets 58 %
France Formats: Hypermarkets, supermarkets, discount stor es, cstores, cash & carries, independent retailers, forecourt stores No. of stor es: 4,530 2002 retail sales: €45.2 billion
Greece Formats: Hypermarkets, supermarkets, discount stores No. of store s: 414 2002 retail sales: €1.4 billion
Italy Belgium Formats: Hypermarkets, supermarkets, c-stores No. of store s: 484 2002 retail sales: €5.3 billion
Czech Repu blic Formats: Hypermarkets No. of store s: 8 2002 retail sales: €0.3 billion
Formats: Hypermarkets, supermarkets, c-stores, cash & carries No. of store s: 946 2002 retail sales: €6.3 billion
Poland Formats: Hypermarkets, supermarkets No. of store s: 76 2002 retail sales: €0.8 billion
Portugal Formats: Hypermarkets, discount stores No. of store s: 346 2002 retail sales: €0.9 billion
Romania Formats: Hypermarkets No. of stor es: 1 2002 retail sales: €0.1 billion
Slovakia Formats: Hypermarkets No. of stor es: 4 2002 retail sales: €0.1 billion
Spain Format: H yp er m ar k ets, supermarkets, discount stor es, cash carries No. of stor es: 2,802 2002 retail sales: sales: €11.7 billion
Switzerland Formats: Hypermarkets No. of store s: 11 2002 retail sales: €0.6 billion
Argentina Form ats: Dis c ou n t s to r es , hypermarkets, supermarkets No. of stores: 451 200 2 retail sales: €1.5 billion Brazil Formats: Hypermarkets, superm arkets, c-stores No. of stores: 267 200 2 retail sales: €3.7 billion Chile Formats: Hypermarkets No . of store s: 4 200 2 retail sales: €0.1 billion
Colombia Formats: Hypermarkets No. of stor es: 8 2002 retail sales: €0.2 billion Dominican Republic Formats: Hypermarkets No. of stor es: 1 2002 retail sales: €0.1 billion Mexico Formats: Hypermarkets No. of stor es: 21 2002 retail sales: €0.8 billion
China Form ats:
Discount stores, hypermarkets No . of stor es: 62 200 2 retail sales: €1.5 billion Indonesia Formats: Hypermarkets No . of stor es: 9 200 2 retail sales: €0.2 billion Japan Formats: Hypermarkets No . of stor es: 4 200 2 retail sales: €0.2 billion
Malaysia Formats: No. of stor es: 2002 retail sales: Singapore Formats: No. of stor es: 2002 retail sales: South Korea Formats: No. of stor es: 2002 retail sales: Taiwan Formats: No. of stor es: 2002 retail sales:
Hypermarkets 6 €0.3 billion Hypermarkets 1 €0.1 billion Hypermarkets 25 €1.3 billion Hypermarkets 28 €1.4 billion
Egypt Formats: Hypermarkets No . of store s: 1 2002 retail sales: na Oman Formats: Hypermarkets No . of store s: 1 200 2 retail sales: €0.1 billion Qatar Formats: Hypermarkets No . of store s: 1 200 2 retail sales: €0.1 billion
Tunisia Formats: Hypermarkets No. of stor es: 1 2002 retail sales: €0.04 billion Turkey Formats: H yp er m ar k e ts , superm arkets, discou nt stores No. of stores: 134 2002 retail sales: €4.4 billion UAE Formats: Hypermarkets No. of stor es: 8 2002 retail sales: €0.5 billion
Asia 7%
Middle Middle Ea st 1%
South Amer ica 8%
Europe 84%
Smallest fiftee fiftee n countries 4%
Argentina 2%
Belgium 6%
Brazil 4% China 2%
Taiwan 2% Switzerland 1% Spain 13 %
Portugal 1% Poland 1%
France 5 2%
Mexico 1% South Kore Kore a 2%
Italy 7% Greece 2%
January 2003 20 03 - Carrefour arrefour has reporte reported d a slip in in gross sales sales for for 2002 of 1.6 1.6 to EUR76.78 EUR76.78 billion. Although currency effects in emerging markets (devaluations in Brazil and and Argentina and w eaker Asian currencies) knock sales grow th back, on a constant currency basis sales rose by 4.5% 4.5% . January January 2003 – Unconfi Unc onfirmed rmed repor re ports ts sugges sug gestt Carref ar refour our is to ente en terr Bulgari Bulgaria a This follow s on from reports throughout 2002 that the group is planning entry into Russia and the Ph ilippines. December December 2002 - Opening Opening of the first first Carrefour arrefour hypermarket hypermarket in Egypt Egypt by th Majid Maj id Al Futt Futtai aim m group gro up which holds hol ds the th e Carrefo arrefour ur franch franchise ise for countr countries ies in the Middle East. December December 2002 – Carrefo Carrefour ur acquires acquires the the 20.3% 20.3% stake stake not already already ow ned i its Spanish Spanish subsidiary, Centros Comerciales Comerciales Carrefour. Carrefour.
August August 2002 – CEO Dani Daniel el Berna Be rnard rd stres stresses ses that t hat Carrefo arrefour ur is now coming t the end of the three three year year process process of merging merg ing w ith Promodès stating stating "The synergies fr om that are in place, but there are still more to com e, particularl y in logistics. That's a five to six year pr ocess." May 2002 - Carrefour arrefour acquires acquires 12 outlet outlets s from the the failed failed Metro Metro supermark supermark chain in Argentina. February February 2002 – Carrefour arrefour confirms confirms that that it does indeed indeed plan to to open discount discount stores stores in China China under the t he Dia banner as previ pr eviously ously rumoured. rumoured. The first opening is scheduled for Shanghai in 200 3. Although it is too early to say how many Dia stores the company company w ill open in China, China, Carrefour Carrefour believ that the potential market is enormous.
Leading global grocery/ GM retailers retailers in terms terms of sales, 2002:
1.
W a l -M a r t –
E U R 2 5 5 .1 b i l l i o n .
2.
Ca r r e f o u r –
E U R 8 7 .2 b i l l i o n .
3.
Ahold –
E U R 7 5 .4 b i l l i o n .
4.
Krog er –
E U R 5 8 .9 b i l l i o n .
5.
I t o -Y o k a d o –
E U R 5 7 .7 b i l l i o n .
6.
M e t r o Gr o u p –
E U R 5 6 .1 b i l l i o n .
7.
Target –
E U R 4 6 .9 b i l l i o n .
8.
A lb er ts o n s –
E U R 4 4 .6 b i l l i o n .
9.
Kmart –
E U R 4 2 .5 b i l l i o n .
10.
Tesco –
E U R 4 1 .3 b i l l i o n .
Leading global grocery/ GM retailers retailers in terms terms of countries of operation, 2002:
1.
Ca r r e f o u r –
31 countries.
2.
Ahold –
2 6 co u n tr ie s .
-
M e t r o Gr o u p –
2 6 co u n tr i es .
4.
I t o -Y o k a d o –
13 countries.
-
Tesco –
1 3 co u n tr ie s .
6.
W a l -M a r t –
11 countries.
7.
Kroger –
1 c o u n tr y.
-
Targ et –
1 c o u n tr y.
-
A l b er ts o n s –
1 country
-
Kmart –
1 c o u n tr y.
Leading global grocery/ GM retailers retailers in terms terms of number of stores, 2002 : 1.
I t o -Y ok ok a d o –
2 3 ,7 7 2 s t o r e s ( 5 ,5 6 2 ,4 4 8 m 2 ) .
2.
Ca r r e f o u r –
1 0 ,6 7 3 s t o r e s ( 1 2 ,0 7 1 ,9 8 1 m 2 ) .
3.
A hold –
9 ,2 7 6 s t o r e s ( 9 ,7 6 6 ,5 5 0 m 2 ) .
4.
W a l -M a r t –
5 ,0 8 0 s t o r e s ( 4 9 ,6 3 2 ,6 6 8 m 2 ) .
5.
Kroger –
3 ,6 6 8 s t o r e s ( 1 1 ,6 5 9 ,3 4 3 m 2 ) .
6.
M e t r o Gr o u p –
2 ,3 9 3 s t o r e s ( 1 1 ,1 2 5 ,9 0 0 m 2 ) .
7.
A lbertsons –
2 ,2 8 5 s t o r e s ( 9 ,0 9 9 ,8 9 0 m 2 ) .
8.
Tesco –
2 ,2 7 6 s t o r e s ( 4 ,2 8 4 ,5 6 1 m 2 ) .
9.
Kmart –
1 ,6 2 0 s t o r e s ( 1 2 ,5 2 4 ,5 0 0 m 2 ) .
10.
Targ et –
1 ,4 7 6 s t o r e s ( 1 5 ,7 5 8 ,7 3 0 m 2 ) .
, Number of stores by country Country Carrefour Argentina 451 Austria Belgium 484 Bulgaria Brazil 267 Canada Chile 4 China 62 Colombia 8 Costa Rica Croatia Czech Rep 8 Denmark Dominican Republic 1 Ecuador Egypt 1 El Salvador Estonia France 4,530 Germany
Wal-Mart 11
Ahold 245
Tesco
Metr 4 2
22 201
142 78
25
1 96 209 21
17
1
1
11 1,79
1 21 6 95
…continued next pa
, Number of stores by country Country Greece Guatemala Honduras Hungary Indonesia Italy Japan Latvia Lithuania Luxembourg Malaysia Mexico Morocco Netherlands Nicaragua Norway Oman Paraguay Peru Philippines
Carrefour 414
Wal-Mart
Ahold
Tesco
Metr 1
52
3
98 27 9 946 4
21 7 405 33 38
6 21
41
3
595 2,280 20 1,173
2
1 12 39
…continued next pa
, Number of stores by country Country Carrefour P uerto Rico Poland 76 Portugal 346 Qatar 1 Republic of Ireland Romania 1 Russia Singapore 1 Slovakia 4 South Korea 25 Spain 2,802 Sweden Switzerland 11 Taiwan 28 Thailand 17 Tunisia 1 Turkey 134 UAE 8 UK U SA Vietnam
Wal-Mart 54
Ahold
Tesco
Metr
179
77
8 1
77 1
12 12
17 20
694 2,127
51
3
3 49
1
2 259 3,401
1,975 1,628
2
Europe
Ca r r e f o u r ’ s s t a t u s : M ai a i n co c o mp mp e ett i t o rs rs (s ( s ): ):
Leader D e llh h ai ai ze ze , Co lr lr uy u y t , Co ra ra
Strengths 1 . M ar a r k et et le le a d e r . 2 . O pe pe ra r a ti ti on o n s sp s p an a n a w i d e va va ri r i et et y o f f formats/ formats/ fascias. fascias. 3 . H yp y p er e r m ar ar ke k e ts ts pe p e rf r f or o r m in in g w e ll l l in in non-food ranges. Opportunities 1 . D is is co c o un u n t st s t or or e de d e ve ve lo l o pm p m e nt nt . 2 . M o re re fo f o re r e co co ur u r t s to to re re s. s. 3. G reate reaterr syne s ynergi rgies es betw betw een differ different ent supermarket chains.
Weaknesses 1. Unprofi Unprofita table ble since si nce acquis acquisit ition ion.. 2 . Co n ve ve rs r sio i o n o f h yp y p er e r m ar ar ke k e ts ts t o Carrefour arrefour banner has has alienate alienated d som shoppers. 3 . L ab a b ou o u r r el e l at a t io io n s h av a v e b ee ee n problematic. Threats 1 . Co lr l r uy u y t s et et to to ad a d d sp sp ac ac e t h ro r o ug ug h L au a u ru r u s d ea e a l. l.
Ca r r e f o u r ’ s s t a t u s : M ai ai n c o m p e t i t o r s ( s ) :
Number 8 A h o l d , Sc h w ar arz, R ew e
Strengths 1 . Cr ed e d ib i b le l e e co c o n om om y r an a n g es es . 2 . A d ap ap ta t a bl b l e h yp yp er e r m ar ar ke k e t fo f o rm r m a t. t. 3 . L o ca ca l bu b u yi yi ng n g iin nff ra r a st s t ru ru ct c t ur u r e. e. 4 . I m p re r e ss s siv i v e fo f o od o d a n d no n on n -f -f oo o o d o ff f f er er . Opportunities 1. Begin Begin to to cat c atch ch up up in i n disco discount unt store st ore terms. 2 . M o re r e s m al al le l e r f or or m at at h yp y p er e r m ar ar ke k e ts ts . 3 . P os o s si s i bl b l e w i th th d ra ra w als a l s b y f or o r ei e i gn gn players could provide acquisition opportunity.
Weaknesses 1. Laggin Lag ging g riv r ival al operat ope rators ors by a larg large e margin. 2 . P e r ce c e iv i v ed ed a s t oo oo u up pm m a rk rk et e t b y m an an y shoppers. 3 . H as a s w at ch c h ed e d as as o otth h er e r p la la ye ye rs r s h av av e started opening discount units. Threats 1 . F ac a c ed e d b y st st ro r o ng n g com c o m p et e t it it io io n f ro ro m impressive international rivals. 2 . Co ul u l d r iis s k be b e in in g se se en en as as leisure/ tourist destinatio destination n rather than a shopping venue.
Ca r r e f o u r ’ s s t a t u s : M ai ai n co co m p e ti to r s ( s ) :
L eader L e c l e r c , I TM TM , A u c h a n
Strengths 1 . O v e rw r w h e lm l m in i n g l ea ea de de r. r. 2 . I m m e ns n s e b ra r a nd n d aw a w a re r e ne n e ss s s an a n d tr tr us u s t. t. 3. MultiMulti-for format mat prese pre sence nce in all all areas ar eas of country. 4. Ex Exte tensi nsive ve priva private te label la bel lines. lines. Opportunities 1 . D ev ev el el op o p m en en t of o f c lo l o th th in i ng g s up u p pl pl y chain and ranges. 2 . Su p er er m ar ar ke k e t an a nd d d is i s co co u nt n t s to to re re openings. 3 . G r ow o w t h o f c -s -s to to re r e / f or o r ec e c ou o u rt r t st s t or or e business.
Weaknesses 1. L o s t sig h t o f q u ali ty i n re ce n t price-led price-led skirmishes w ith rivals. 2. L o s t m ark et sh ar e to L ec le rc . 3. D i s a p p o i n t i n g EE-c o m m e r c e . 4. P ro ro m o d è s i n te g r atio n h as n o t b e seamless. Threats 1. H eavy p r ic e co m p etiti o n – especially from German discounters. 2. N ot ot m u c h sc sc o p e f o r ac ac q u i s i t i o n s . 3. P la lan n in g l aw s ar e r e s tr ic tive . 4. R i va l s jo i n i n g f o r c e s . 5. W al a l -M ar ar t e v a l u a t i n g en en t r y i n t o France.
Ca r r e f o u r ’ s s t a t u s : M ai a i n co co mp m p et e t i to to rs r s (s ( s ): ):
L eader D e lh lh ai a i ze ze , Sk la l a ve ve ni n i ti ti s, s, V er er op o p ou o u lo lo s
Strengths 1 . N u mb m b er e r on o n e i n t h e m ar a r ke k e t. t. 2 . J o in i n t ve ve nt n t ur u r e an a n d jo j oin i n t br b r an a n di d i ng ng mean the stores have a “local” appeal. 3 . A c ti ti ve ve i n hy h y pe pe rs r s , su s u pe pe rs r s a nd nd discount stores. 4 . F ra r a nc n c hi h i se s e d ea ea ls ls m ea e a n lo lo w c ost o s t an an d low risk. risk. Opportunities 1 . D ev ev el el op o p m en en t of o f c lo l o th th in i ng g s up u p pl pl y chain and ranges. 2. Still ti ll pot p otent entia iall for for many man y more more stor s tores. es. 3 . F ai a i rl r l y re re la l a xe x e d co c om m pe p e ti ti ti ti on o n l aw aw s could enable sizeable acquisitions.
Weaknesses 1 . L o we w e r sh s h ar a r e of o f l oc oc al al ly l y s ou ou rc r c ed ed g go oo od than in other markets. 2 . So m e c ri r i ti ti cs c s s ug u g ge g e st s t t ha h a t r eb e b ra r a nd n d in in of certain operations has been rushed and confusing. Threats 1 . Sm al a l le le r r iiv v a ls ls s uc u c h a s D e lh lh ai a i ze ze a nd nd Atlantic are fighting hard for marke share.
Ca r r e f o u r ’ s s t a t u s : M ai ai n c o m pe pe t i t o r s ( s ) :
Number 3 Co o p I ta t a l i a , Co n a d , A u c h a n
Strengths 1 . R e as as on o n ab a b le l e hy hy pe p e rm r m a rk rk et e t a nd nd supermarket presence. 2. Effec Effecti tive vely ly dit ditche ched d frozen fro zen food foo d chain. chain. 3 . O w n -b -b ra r a nd n d s an an d no n o nn -f oo o o d ra r a ng n g es es compare w ell to larger larger domestic rivals. Opportunities 1. A c cq q u i s iti o n s . 2 . Co ul ul d i n ntt r od od u uc c e D i a i n th t h e l on on g ge er term. 3 . Co n ve ve ni n i en e n ce c e f or o r m at at i s ri ri pe p e f or or expansion. 4. G rowth into into underde unde rdeve velop loped ed South. outh.
Weaknesses 1 . St or or es e s a p pe pe ar a r q u it ite e cl c l in i n ic i c al al alongside their I talian counterparts counterparts 2. OverOver-conc concent entrat ration ion in in NorthNorth-Ea East st.. Threats 1 . Co na n a d a nd n d Co Co p I t al al ia ia ar ar e s tr tr on on g rivals w ith impressive multi-format operations. 2 . A u ch ch an a n i s p oi o i se se d f or o r s us u s ta ta in in ed ed grow th in Italy. 3 . St or or e op o p en e n in i n gs g s a re re b es es et e t w i th t h re re d tape.
Ca r r e f o u r ’ s s t a t u s : M ai a i n c om om pe p e ti ti to to rs rs (s ( s ): ):
N um ber 5 A uc u c ha h a n , J er e r ó ni n i m o M ar a r ttii n ns s , Ca s in in o
Strengths 1 . D ec ec en e n t ne n e tw tw o r k h yp y p er e r m ar ar ke k e ts ts an an d supermarkets. 2 . H as a s bee b ee n en en jo jo yi yi ng n g e nc nc ou o u ra r a gi g i ng ng comparable sales sales grow th.
Weaknesses 1 . L ac a c k of of p ri ri va va te te la l a be be l of of fe f e r. r. 2 . H as a s bee b ee n sl sl ow o w t o c on o n ve ve rt r t th th e Gl Gl ob ob i stores inherited from GIB. 3 . Sa t b ac ac k as as T e sc sc o p ic ic k ed ed u p H it it .
Opportunities 1. Amb bii ti ti ou ou s gr g r ow ow t h t ar ar ge g e ts ts . 2. Disco Discount unt store st ores s could cou ld be launch la unched. ed. 3. Shift hif t aw a w ay from fro m priceprice-led led to qualit qua lityyled competition? 4 . I n tr t r od od u uc c ti ti on on o f o w n -b - b ra r a nd n d s. s.
Threats 1. Up agains againstt some of Eu Europ rope’ e’s s fine finest st grocers. 2. Viable Viable hyperma hypermarke rkett locat location ions s are are increasingly thin on the ground. 3 . G r o w i n g c om o m p et et it it io ion n in i n n o nn-f oo oo d areas from specialist chains.
Ca r r e f o u r ’ s s t a t u s : M ai a i n co co m pe p e t i t o r s ( s) s) :
Number 3 M od o d e l o Co n t i n en en te te , J er e r ó n iim m o M ar a r t i n s , A uc u c h an an
Strengths 1. Strong trong dual dual presen pre sence ce through through hypers hypers and discount stores. 2 . D is is co c o un u n t s to to re r e s h av a v e b ee ee n performing very w ell. 3 . O w n b ra r a nd n d s se se ll l l in i n g w e ll l l in i n f oo oo d an an d non-food. Opportunities 1 . M a in in s tr tr ea e a m su s u p er er m ar ar ke k e ts ts c ou o u ld ld b e unveiled.
Weaknesses 1 . H yp y p er e r m ar ar ke k e t o pe p e ni n i ng n g s ha h a ve ve b ee ee n slower than hoped. 2. Strat tr ategy egy has occasi occasiona onall appe a ppeare ared d fuzzy in Portugal. 3 . Co n fl fl ic ic t w i t h M Mo o de d e lo l o Co C o n ti ti ne n e nt n t e. e. Threats 1 . O ng n g oi o i ng n g ar ar gu g u m en en ts t s w i th t h Mo M o de d e lo lo Continente ontinente appear appear to be a counterproductive d istraction. istraction. 2 . L id id l w a nt n t s t o c ha ha l l e ng ng e i n discounting.
Ca r r e f o u r ’ s s t a t u s : M ai ai n co c o m pe pe t i t o r s ( s ) :
N um ber 3 R e w e, e , D e l h a i z e , Co r a
Strengths 1 . F ir i r st s t mo m o ve ve r s ta ta tu tu s am am o ng n g W e st st European hypermarket operators. 2 . H as a s us u s ed ed a l ow o w -r is i s k fr f r an a n ch c h is i s ed e d r ou o u te te to market. 3 . Com o m pr pr eh e h en e n s iv iv e ar ar ra r a y of o f R o ma m a n ia ia n produce. Opportunities 1 . Co ul u l d ex e x pa p a nd n d i nt n t o ot o t he h e r fo f o rm r m a ts ts . 2 . F ur u r th t h er e r l in i n ks k s w i th th l oc o c al a l s up u p pl p l ie ie rs rs .
Weaknesses 1. Has lagge la gged d othe o therr pla p laye yers rs in terms te rms o discount store opening. Threats 1 . I n cre c r e as a sin i n g co c om m pe pe ti ti ti ti on o n f or o r w h a t st st i amounts to a small market. 2 . U n cl cl ea e a r i f R o ma m a ni n i an a n co co n su su m er er economy w ill support many more hypermarkets.
Ca r r e f o u r ’ s s t a t u s : M ai a i n c o mp mp e ett i t o rs rs (s ( s ): ):
N um ber 5 T e sc sc o , R ew ew e , P r im im a Zd ro ro dj dj
Strengths 1 . T h e Ca r r ef ef ou ou r h yp yp e err ma m a r ke ke t fo f o rm rm at at i s an impressive and popular one in Slovakia. 2. Decen Decentt priva private te label la bel offeri off ering. ng.
Weaknesses 1. Stalle talled d on four store st ores s for f or a couple cou ple o years. 2 . T es es co c o a pp pp ea ea rs rs to to be b e bu b u il i l di di ng n g an an unassailable lead.
Opportunities 1 . O pe p e ni n i ng n g o f m o re re h yp yp er e r m ar ar ke k e ts ts . 2. Dive Diversi rsific ficat ation ion into into disc d iscount ounting ing – lack of strong competition in this sub-sector of the market.
Threats 1 . O ve ve rt r t ak ak en e n b y m o re re p la la ye ye rs r s as as grow th plans falter. falter. 2 . Ca rr r r ef e f ou o u r s to t o re r e s c ou o u ld l d be b e of of i nt n t er er es es to a m ore aggressive predator.
Ca r r e f o u r ’ s s t a t u s : M ai ai n co co m pe pe t i t o r s ( s ) :
L ead er E r o s k i , M er e r c a d o n a , E CI
Strengths 1 . D o mi m i na n a nt n t m ar a r ke k e t le le ad ad er er . 2. Credibl redible e own-brand own-brand strat st rategy egy and performance. 3 . V as a s t d is i s co c o u nt nt s to to re r e ne n e tw tw or ork. Opportunities 1 . M o re r e new n ew s to to re r e s ac ac ro r o ss s s al a l l b an a n n er er s. s. 2 . P o t en en ti t i al al fo f o r s m al al l r eg e g io i o na na l acquisitions.
Weaknesses 1 . P o or o r e -c -c om o m m er e r ce c e pe pe rf r f or o r m an an ce ce . 2 . T rra a ns ns fo f o rm r m at a t i on o n f r om o m C on on ti ti ne n e nt nte t o Carrefour arrefour lacked lacked finesse finesse and sensitivity sensitivity tow ards Continente shoppers. 3 . Ch am a m p io ion n le l e ss s s i m pr p r es e s si s i ve ve t ha ha n Ca rr rr ef e f ou ou r a nd n d D i a. a. 4. El Corte orte Inglés Inglés still st ill leads leads the w ay in fresh food merchandising. Threats 1 . A ld ld i , L i d l a n d T e n g e l m an an n a r e chasing discount market share. 2 . Sp an a n is i s h f oo oo d re r e ta ta il il er e r s ar a r e no no t pushovers pushovers – the likes likes of Capra Caprabo, bo, Erosk Er oskii and Mercado Merc adona na are fight fi ghting ing back.
Ca r r e f o u r ’ s s t a t u s : M ai a i n c om om p pe e ti ti to to rs r s (s ( s ): ):
N um ber 5 M ig i g ro r o s, s , Co op o p Sc hw h w e i z, z, B on o n ap ap pe p e ti ti t
Strengths 1 . O ne n e o f t he h e c ou ou n tr tr y’ y’ s l ea e a di di ng ng hypermarket operators. 2. Forei For eign gn pion pioneer eer in once onc e prot protect ectiv ive e and low competition market. market. 3 . F or o r m ed ed s tr tr on o n g J V w i th t h l oc oc al al p ar ar tn tn er er – insta ins tant nt expert exp ertise ise.. 4 . M uch u c h w i d er er pr pr od o d uct u ct r an a n ge g e s t ha ha n rivals. Opportunities 1 . N e w st sto r es . 2 . Co u ld ld pi pi ck c k up u p so so m e s m al al le le r operators. 3. Disco Discount unt store st ores s coul could d be an option option..
Weaknesses 1 . O u t b i d fo f o r W ar ar o . 2 . St or or e c on on ve ve rs r sio i o n s an an g er er ed e d s o me me Jumbo shoppers. 3 . A g ai ai n, n , i ts ts g r ow ow t h ta ta rg rg et e t s ap ap pe p e ar ar over-ambitious. Threats 1 . Cr ow o w d e d ma m a rk rk et et ru r u le le d b y t w o pow erful giants. giant s. 2. Sw itzer it zerlan land d is i s a fairly fairly small sma ll market mar ket scope for hypermarket developmen is patchy at best.
South Am America erica A merica
Ca r r e f o u r ’ s s t a t u s : M ai a i n c o mp mp e ett i t o rs rs (s ( s ): ):
Leader A ho h o ld ld , Co to to , Ce nc nc os os ud ud
Strengths 1 . M ar a r k et et le le a d e r . 2 . M u lt lt i -f -f or o r ma m a t a pp p p ro r o ac ac h. h. 3 . D is is co c o u nt nt f or o r m ul u l a ha h a s ap ap pe p e al a l ed ed i n times of crisis. 4 . H yp y p er e r m ar ar ke k e ts ts pe p e rf r f or o r m in in g w e ll l l in in non-food ranges. Opportunities 1 . G e og og ra r a ph p h ic i c e xp x p an an si s i on on . 2 . P o te t e nt n t ia ia l a cq cq u uii si si ti ti on o n s ( Ek Ek i i n particular). 3. Increase Incre ase priva private te--label la bel penetr penetrat ation ion..
Weaknesses 1. OverOver-conc concent entrat rated ed in in the th e Grea Greater ter Buenos Aires region. 2 . W e ak a k o w n -b -b ra r a nd n d s al al es es in i n N or o r te te supermarkets. Threats 1 . E co co n om om i c/ c/ p ol o l it i t ic ic al al un u n ce c e rt r t ai ai nt n t y. y. 2 . W a l -M -M a rt rt lo l o ok o k in i n g fo f o r fu fu rt r t he h e r gr gr ow ow t
Ca r r e f o u r ’ s s t a t u s : M ai a i n c om om p pe e ti ti to to rs r s (s ( s ): ):
N um ber 2 Ca si si no n o , Se nd n d as as , M o de de lo lo Co Co nt n t in in en e n te te
Strengths 1 . H yp yp er e r ma m a rk rk et e t l ea ea de de r. r. 2 . Su cc cc es es sf sf ul u l la l a u nc nc h o f D i a . 3. High Hig h part partic icipa ipati tion on of own-labe own-l abell in turnover. 4 . I m p re r e ss s siv i v e clo c l o th th in i n g s al al es es . Opportunities 1 . M o re r e d is i s co c o u nt n t s to to re r e d e ve ve lo l o pm p m e nt nt . 2 . G r ow ow t h in in Sa Sa o P au a u lo lo .
Weaknesses 1. Missed Missed opport opp ortunit unity y to acquir acquire e Sé Sé supermarket chain. 2 . L im i m i te te d ge g e og o g ra r a ph p h ic i c al al s sp prr ea e a d. d. Threats 1 . Co n so soli l i da d a ti ti on o n o f l ea e a de de rs r s hi hi p b y Casino. 2 . W a l -M -M a rt rt ge ge ar a r in i n g u p fo fo r g ro r o w t h pu pu
Ca r r e f o u r ’ s s t a t u s : M ai ai n co c o m p e t i t o r s ( s) s) :
N um ber 5 D & S, S, A h o l d , C e n c o s u d
Strengths 1 . I m p re r e ss s siv i ve e h yp y p er e r m ar ar ke k e t o pe p e ra r a ti ti on on . 2 . St ro r o ng ng p plla a ye yerr in in n o nn-f oo o o ds ds . 3. G ood mix of local local and intern internat ation ional al products.
Weaknesses 1 . G r ow o w t h r at a t e h as a s be be en e n fa fa ir i r ly ly laborious. 2. Entire Entirely ly relian reliantt on Santia antiago go as a s its its market.
Opportunities 1 . Su p er er m ar ar ke k e t op ope en nii ng n g s/ s / a cq cq u is isit i t io io n s. s. 2 . D i sc sc ou ou nt n t st s t or or e de de bu bu t? t? 3 . M o re re ow o w n -l - l ab ab el e l r an an ge g e s. s.
Threats 1 . Se em em s to to b e l ag ag gi g i ng n g m ai ai n competitors in growth terms. 2. Commitment ommitment to Chilean hilean market mar ket and Carrefour’s Carrefour’s plans both appear uncertain.
Ca r r e f o u r ’ s s t a t u s : M ai a i n c om om pe p e ti ti to to rs rs (s ( s ): ):
Number 4 Ca s in in o, o , Ca r rru u ll ll a V iiv v e ro ro , O l i mp m p ic ic a
Strengths 1. Ver Very y pric p ricee-com compet petit itiv ive e compar compared ed to to rivals. 2. Relat Rel ativ ively ely large large store st ores s with broad bro ad non-food lines. 3. Store tore openin ope nings gs are ar e prog progres ressin sing g well. well . 4. High Hig h propor proporti tion on of local locally ly source sou rced d products. Opportunities 1 . O rg rg an a n ic i c s u pe p e rm r m ar a r k et et a nd n d d i sc sc ou ou n t store grow th. 2 . T ak ak eo e o ve ve r of o f Ca Ca ru r u ll l l a Vi Vi ve ve ro ro . 3 . E x pa p a n si s i on on b ey e y o nd n d M ed e d el e l li li n a nd nd Bogota.
Weaknesses 1 . D w a r fe fe d by by co c om m pa pa tr tr io i o t Ca si s i no no . 2 . O w n -b -b ra r a nd n d s re r e la la ti ti ve ve ly ly underdeveloped. 3 . H as a s m is is se s e d o ut u t on o n s ig ig n if if ic i c an an t takeovers. Threats 1 . So m eo eo ne n e el el se s e ta ta ke k e s o ve ve r Carulla Vivero.
Ca r r e f o u r ’ s s t a t u s : M ain c o m p e ti to r s ( s ) :
N/ a N/ a
Strengths 1 . L ac a c k o f de de ce ce nt n t co c om m pe pe ti ti ti ti on on . 2. Ex Excel cellen lentt stor store e loca l ocati tion on in in modern mod ern shopping centre. Opportunities
Weaknesses 1 . Sl ow o w i ng n g s al a l es e s p er e r fo f o rm r m a nc nc e. e. Threats 1 . E c on o n om o m ic i c st s t ag ag n na a ti ti on on . 2 . M ar ar k e t ex ex i t ?
Ca r r e f o u r ’ s s t a t u s : M ai a i n c o m pe pe t i t o r s ( s) s) :
Number 6 W al a l -M ar a r t , Co m er er c i , So r i a n a
Strengths 1. Higher Hig her qualit qua lity y of of ret retail ailing ing compare compare to rivals. 2. Large Large avera average ge store store size size enab enables les w ider ranges. range s. 3 . G o od o d m ix ix o off l oc o c al al / n at a t io io n al al b ra ra nd nd s .
Weaknesses 1 . St uc u c k w i th t h l im i m it i t ed ed s stto o re r e b as ase e fo fo r several years. 2 . P e rc r c ei ei ve ve d as as e xp x p en e n si s i ve ve . 3 . M i ss s s ed ed o ou utt o n ta ta ki k i ng ng o ov ve er A Au u ch c h an a n ’s ’s stores.
Opportunities 1 . A c qu qu is i sit i t io io n of o f la l a rg r g er e r an a n d / or o r sm sm al a l le le r players. 2 . D i sc sc ou o u nt n t st s t o re r e s w o u ld l d b e w e ll ll received by Mexican shoppers.
Threats 1. AllAll -conquer conquering ing Wal-Mart Wal-Mart is taking taking over the market. 2 . Sm al a l le l e r ni n i ch c he e pl p l ay ay er er s su s u ch ch a s Gigante Gigante and H.E. H.E. Butt are catering catering for the higher end of the m arket.
Asia -Pacific Asia-Pacific
Ca r r e f o u r ’ s s t a t u s : M ai a i n c om om p pe e ti ti to to rs r s (s ( s ): ):
N um ber 5 CR E, E, D a ir ir y F ar ar m, m , A S W a ts t s on o n , Sh an a n gh g h ai ai L ia ia nh n h ua ua
Strengths 1 . O ne ne o f th th e fi f i rs r s t W e st s t er er n en e n tr t r an a n ts ts . Regarded as most successful foreign operators. 2 . H as a s bee b ee n ad ad ap a p ta t a bl b l e i n fa fa ce c e of of changing government policies. 3 . F or o r m at at an an d pr p r od o d uct u ct m ix ix h ha av v e b ee ee n modified w ell to meet local local demands. Opportunities 1 . Su p er er m ar ar ke k e t an a nd d d is i s co co u nt n t s to to re re development. 2 . A m as a s si s i ve ve p ot ot en en ti t i al al m ar ar ke k e t. t. 3 . H ig i g h er er o w n -l -l ab ab el e l p en en et e t ra ra ti ti on on .
Weaknesses 1 . H as a s a pp pp ea e a re r e d ig ig nor n or an an t of o f l oc oc al al planning planning law s. 2 . St i ll ll a w e a k s ho h o w i ng n g fr f r om o m ow ow n branded goods. Threats 1 . D ea ea rt r t h o f l oc o c al al ma m a na n a ge g e rs rs . 2. Local Loc al playe players rs have have conso consoli lidat dated ed to fend off the the likes likes of Carrefour. arrefour. 3 . P o l ic i c y c ha h a ng n g es e s b y c en e n tr t r al a l / l oc o c al al governments. 4 . W a ll-M ar a r t a n d T e sc sc o e t c l o ok ok in in g t o compete.
Ca r r e f o u r ’ s s t a t u s : M ai a i n co co mp m p et e t i to to rs r s (s ( s ): ):
Number 3 D e lh lh ai a i ze ze , D a ir ir y F ar ar m, m , A llff a R et e t a il il in in do do
Strengths 1. Leadin Leading g hyp h yperma ermarke rkett operat operator or in the country. 2 . I s a bl bl e t o m ix i x lo l o ca c a l p ro r o du d u ct c t s w i th th sought-after sought-after international brands. 3 . I s a bl b l e to to a pp p p ea e a l to to m or o r e af af fl f l ue u e nt nt local consumers. Opportunities 1 . L on o n g te t e rm r m s c op op e fo f o r di d i sc s c ou o u n t c ha h a in in . 2. There There are a re sev s evera erall potent potential ial takeo ta keove verr targets in the supermarket sector.
Weaknesses 1. Lack Lack of defini definite te expans exp ansion ion timet ti metabl abl 2. OverOver-rel relia iant nt on export exp orted ed French Fre nch management. Threats 1. G ene eneral ral polit pol itica icall inst instabi abilit lity. y. 2 . Ca rr rr ef ef ou o u r h as as b ee e e n sp s p ec ec if if ic ic al al ly ly targeted by violent activists.
Ca r r e f o u r ’ s s t a t u s : M ai a i n c o m pe p e t i t o r s ( s) s) :
Number 11 A eo eo n , D a i e i , U n y
Strengths 1 . N on o n -f -f oo oo d r an an g ge es . 2 . I n n o va va ti ti ve ve m er e r ch c h an a n d is isin in g . Opportunities 1 . A cq cq u uii si si ti ti on on s/ s / p ar ar tn tn er e r sh s h ip i p s. s.
Weaknesses 1. Has failed failed to meet openin ope ning g targ target ets. s. 2 . H as a s n o t ef ef fe f e ct c t iv iv el el y ta ta rg r g et e t ed ed Japanese shoppers. 3 . L ac a c k o f l oc o c al a l is is ed e d so s o u rc rcin in g . Threats 1 . N e w s to t o re r e si s i te te s a re r e ha h a rd r d to t o co co m e b 2. Wal-Mart Wal-Mart is takin ta king g contr control ol of Seiy Seiyu. u. 3. Diffi Di fficul cultt defla def lati tiona onary ry economy economy.. 4 . M ar ar k e t ex ex i t ?
Ca r r e f o u r ’ s s t a t u s : M ai a i n c om om pe p e ti ti t o rs rs (s ( s ): ):
Number 4 D a i rry y F ar ar m, m , A eo e o n, n, St o re re Co rp rp or or at at i on on
Strengths 1 . N on o n -f -f oo oo d r an an g ge es . 2 . In I n n ov o v at at iv iv e m e rc rc ha h a nd n d is i sin i n g. g. Opportunities 1 . B uy u y in in g up u p o r l ea ea si s i ng n g e xi xi st s t in in g properties. 2 . Im I m p le l e m en en ta t a ti ti on o n o f p ri r i va va te te l ab ab el el programme.
Weaknesses 1 . Sl ow o w p ro r o g re re ss s s in i n ope o pe ni n i ng n g u ni n i ts ts . 2 . O w n -b -b ra r a nd n d s ye ye t t o be be i nt nt ro rod d uc uc ed ed o any real scale. 3 . L ac a c k o f l oc o c al a l is is ed e d so s o u rc rcin in g . Threats 1 . R o bu b u st s t l oc o c al al a nd n d i nte n te rn r n at a t io io n al al competitors. 2 . I n cre c r e as a sin i n g ly ly p ro r o te t e ct c t io io n is is t government.
Ca r r e f o u r ’ s s t a t u s : M ai a i n co c o m pe p e t i t o r s ( s) s) :
Number 7 N TU TU C F ai ai r p r i c e , D a i r y Fa Fa r m , D e l h ai ai z e
Strengths 1 . O pe pe ra r a ti ti on o n s ar ar e no n ow w p r o fi f i ta ta bl b l e. e. 2 . A tt t t ra ra ct c t iv iv e h yp y p er e r m ar a r ke k e t w i th th typically typically high merchandising standards.
Weaknesses 1. Comprehe omprehensi nsive ve failur failure e to to meet me et initi initi grow th targets of six years ago. 2 . H as a s r em em a in in ed ed s stta a ll ll ed ed o on n a si si ng n g le le store.
Opportunities 1 . O pe pe ni n i ng n g of o f sm s m al a l le l e r s to to re r e s. s. 2 . A c qu qu is i sit i t io io ns n s of of / p ar a r tn tn er e r sh s h ip i p s w i th th local businesses.
Threats 1 . Sh or o r ta t a ge g e o f s ui u i ta ta bl b l e la la nd nd a an nd d development sites. 2 . M ar ar k e t ex ex i t ?
Ca r r e f o u r ’ s s t a t u s : M ai ai n c o m p e t i t o r s ( s) s) :
Number 3 N on on g s h i m a, a, S h i n s e g a e , L o t t e
Strengths 1. Sophisti ophistica cate ted d hype hypermar rmarket ket format for mat that compares compares w ell w ith indigenous stores. 2 . H as a s a ch ch ie i e ve ve d ra r a pi p i d ex ex pa p a ns n sio io n . Opportunities 1 . Co nt n t in in u ed ed st st or or e o pe p e ni n i ng ng . 2. Disco Discount unt--focuse foc used d riva ri vals ls sugge s uggest st the the possibility of an upmarket supermarket operation in larger cities cities – launch launch of Champion?
Weaknesses 1 . O cc cc as a sio i o n al al l e ga ga l br b r in i n k ma m a ns n s h ip ip . 2 . H as a s f ai ai le le d to to ex e x er e r t a da d a ma m a gi gi n g impact on local competitors. Threats 1 . W a l -M -M a rt r t a nd n d d o m es es ti t i c c om om p et et it it or or s w ill provide a stiff stiff challenge. 2 . E co co n om om i c p ro r o bl b l em e m s co c o ul u l d ca ca us us e a flight to value retailers.
Ca r r e f o u r ’ s s t a t u s : M ai a i n co c o m pe p e t i t o r s ( s) s) :
N um ber 2 I to t o -Y ok o k a d o , A uc u c h a n , Ca s i n o
Strengths 1 . L ea e a di d i ng n g h yp y p er e r m ar ar ke k e t bu b u si s i ne n e ss ss i n Taiwan. 2 . H as a s ta ta il il or o r ed e d it i t s o ff f f er e r w e ll ll . Opportunities 1 . O pe pe ni n i ng n g sc s c he h e du d u le l e lo lo ok o k s b ot ot h optimistic and achievable. 2 . Co u ld ld pi pi ck c k up u p so so m e s m al al le le r operators. 3. Disco Discount unt store st ores s coul could d be an option option..
Weaknesses 1. Has lost lost out o ut on some s ome potent potential ial sites sites t o A uc u c ha ha n . Threats 1 . Ca s i n o a n d A uc uc h a n w i ll ll b e challenging for locations.
Ca r r e f o u r ’ s s t a t u s : M ai a i n c o mp mp e ett i t o rs rs (s ( s ): ):
N um ber 4 T e s co co , Ca s in in o, o , I to t o -Y o ka ka d o
Strengths 1 . L ar a r g e s to to re r e s, s , w i de d e ra r a ng n g es e s an an d disti dis tinct nctiv ive e Carrefo arrefour ur panac pan ache. he. 2. Local Loc al goods goods have have encoura encouraged ged local local appeal.
Weaknesses 1 . O ve ve r rre e li l i an a n t on on B an a n g ko ko k m ar ar ke k e t. t. 2 . Se em e m s t o h av a v e l et e t Ca si s i no n o an an d T es e s co co set the pace. Threats
Opportunities 1 . G e og og ra r a ph p h ic i c e xp x p an an si s i on on . 2 . Su p er er m ar ar ke k e t an a nd d d is i s co co u nt n t s to to re re development in the face of strong hypermarket competition.
1 . T h ai ai g ov o v er er n me m e nt n t i s ap ap pe p e ar ar in i n g m uc uc h less friendly to large foreign retaile
Africa & M iddle East E ast Middle Ea st
Ca r r e f o u r ’ s s t a t u s : M ai a i n co co m pe p e t i t o r s ( s) s) :
N/ a M et e t r o (E ( E g yp yp t ) , R ag ag a b So n s, s, A llff a M ar a r k et et
Strengths 1. Could oul d easi e asily ly become become market market leader leader w ith a single store. 2 . E g yp y p t’ t’ s on o n ly l y tr t r ue u e h yp y p er e r m ar ar k et et operator. 3. Franch Franchise ise deal deal is fast fast trac track k to local local knowledge. Opportunities 1 . Eg y yp p t w o ul u l d be b e re r e c e p ti ti v e to to D i a a n d Champion. 2 . U p to to 1 5 h yp y p er e r m ar ar ke k e ts ts co c o u ld ld b e trading. 3 . A c qu qu is i sit i t io io ns n s / j oin o i n t v en en tu t u r es es .
Weaknesses 1 . H as a s t ak ak en e n l on o n g er er tha t h a n ex e x pe p e ct c t ed ed to to open first store. Threats 1. Sainsbu ai nsbury ry’s ’s exit exit demonst demonstrat rates es a certain local wariness of foreign retailers. 2. Egyp Eg yptt is a diff d iffic icult ult econ economic omic,, polit politic ic and social environment.
Ca r r e f o u r ’ s s t a t u s : M a i n co c o m p e ti to r s ( s ) :
N u m b e r 1 ( tb c ) Various
Strengths 1. Market Market leader leader in mode m odern rn distr dis tribu ibuti tion. on. 2. Only Only hyperma hypermarke rkett operat operator or in the country. 3 . H as a s lo lo ca c a l p ar a r tn tn er e r w i th t h lo lo ca ca l knowledge. Opportunities 1 . O ne n e or or tw tw o mo m o re r e hy hy pe p e rm r m a rk rk et e t s. s. 2 . L au a u nc n c h of of su s u pe p e rm rm ar a r ke k e ts ts .
Weaknesses 1 . L on o n gg -w i nd n d ed ed p ro r o ce c e ss ss b et etw e e n planning and opening of store. Threats 1. Ver Very y limit lim ited ed scope scope for furthe fur therr sto s tore re
Ca r r e f o u r ’ s s t a t u s : M a i n co c o m p e ti to r s ( s ) :
L ead er Various
Strengths 1. Only Only hyperma hypermarke rkett operat operator or in the country. 2 . H as a s p ro ro ve ven n po p o pu p u la l a r w i th th l oc o c al al s a nd nd international shoppers alike. 3 . R un u n by by lo l o ca c a l f ra r a nc n c hi h i se s e p ar ar tn t n er er w h ho o know s market. market . Opportunities 1 . D ev ev el el op o p m en e n t o f a dd d d it i t io io n al al products/ products/ services services..
Weaknesses 1. Has yet ye t to to full fully y adap adaptt to to loca locall mark mark conditions. Threats 1. Ex Extr tremel emely y limi limite ted d pote po tenti ntial al for mor stores.
Ca r r e f o u r ’ s s t a t u s : M ai a i n co c o m pe p e t i t o r s ( s) s) :
N um ber 1 Ca s i n o, o, T o u ta ta , M ag ag r o
Strengths 1 . M ar a r k et et le le a d e r . 2. Brave Brave market mar ket entry entry support supported ed by JV partner. 3 . H ig i g h q ua ua li li ty ty s to to re r e w it i t h si s i ze ze ab a b le le customer base. Opportunities 1. Broade Broadening ning of store st ore’s ’s appeal appeal through through expanded product/ service ranges.
Weaknesses 1 . D em em a nd nd lla arr ge g e ly l y d ep ep en e n d en en t on o n T un un i Threats 1 . M a rk r k et e t m ay ay no n o t b e a bl b l e t o s up u p p or or t many more outlets.
Ca r r e f o u r ’ s s t a t u s : M ai a i n c o m pe p e t i t o r s ( s) s) :
N um ber 3 M iig g r o s T ü r k , B i m , T a n sa sa s
Strengths 1. Rapidl Rap idly y develo developin ping g thre three e dist distinc inctt formats. 2 . J V p ar a r tn tn er e r c an an o ff f f er e r s ig ig n if if ic i c an an t financial backing as w ell as market intelligence. 3. Can offer off er WesternWeste rn-sty style le goods goo ds to appeal to younger Turkish shoppers. Opportunities 1. Massiv Massive e scope scope for store st ore openin openings. gs. 2 . P os o s si s i bl b l e li li nk n k up u p w i t h ex e x is i s ti ti ng n g T ur u r ki k i sh sh retailers.
Weaknesses 1. Has arguab arguably ly focuse focused d too too heavi hea vily ly o price rather than quality and differentiation. 2. Disap Di sappoi pointi nting ng progre pro gress ss in Champio hampio openings. Threats 1 . A l re re ad ad y st st ro ro n g c om o m p et et it it io ion n in in hypermarket hypermarkets s (Migros, Yimpas etc) and discount stores (Bim). 2 . T es es co co l oo oo ks k s s et et t o o ff f f er er m or or e competition.
Ca r r e f o u r ’ s s t a t u s : M ai a i n co c o m pe pe t i t o r s ( s) s) :
L ead er G i a n t, t, Ch oi oi t r a m , Sh op o p N Sa v e
Strengths 1 . Cl ea ea r m ar a r ke k e t l ea ea de de r. r. 2 . I m p re r e ss s siv i v e s to to re r es s se se t i n de d e ce c e nt nt shopping centres. Opportunities 1. High Hig h per per capi capita ta spendi spending ng shoul should d lea l ead d to decent profitability. 2. Despi Despite te countr cou ntry’ y’s s wealth, weal th, discou discount nt stores could succeed.
Weaknesses 1 . St or or e o pe p e ni n i ng n g s h av a v e slo s lo w e d .
Threats 1. Limite Limited d mark m arket et size size sugg suggest ests s that that further grow th w ill be more difficul to achieve.
Carrefour arrefour is now focusing on its its three three core core formats formats – hypermarke hypermarkets, ts, supermarkets and discount stores. Dia discount discount stores stores in partic particular ular are are now seen as a key drive dr iverr for Carrefour arrefour future grow grow th. Given iven the success success of the t he Dia format w ith its its high profita profitabili bilitt levels, levels, it is not surpris su rprising ing that tha t Carrefour arrefour is placing placing more emphasis emphasis on the discount banner in order to grow internationally. internationally. In more developed markets such as Europe, becoming a m ulti-format ulti-format retailer is taking on more im portance as legislation, particularl y in Europe, Europe, plays against opening large hypermarkets. I n Europe, grow th is going to come from the emerging markets of Eastern or Central Central Europe. Europe. Carrefour arrefour already already has operations operations in Romania, Romania, Poland an the Czech Czech and Slovak Slovak Republics to w hich other formats could be added in the future. future. Carrefour arrefour has also also been rumoured to to be considering considering entry entry into into Bulgaria and/ or Russia. However, as in the rest of Europe, competition w ithin these markets is intensifying. intensifying. Future grow th is therefore increasingly increasingly going to come from more developin g markets, especially South America and Asia.
Despite Despite the the economic economic dow nturn in the region, r egion, Carrefour arrefour is still still committed committed pursuing further expansion in South Am erica. In fact, various opportunitie are likely to present themselves in the acquisition of more vulnerable local players. It seems likely for example that the company w ill acquire the 200strong strong Eki Eki chain chain in Argentina. Argentina. Expansion into the Asian m arket is now top priority, as it is believed that this region region offers offers the the largest largest opportun opportunitie ities s for growth. Carrefour arrefour is particularly particularly bullish about its prospects in China, w here it is soon planning t introd introduce uce its its Dia Dia discoun discountt store store forma fo rmat. t. Carrefour Carrefour has proved itself itself especially especially adept at entering developing developing market at an early stage. stage. Carrefour’s approach is usually to t o establish a chain of hypermarkets and develop a range of ow n brands, and then introduce its supermarket supermarket or discount discount store formats. forma ts. This gives gives Carrefour arrefour firstfirst-mover advantage in many markets. Carrefour Carrefour has hypermarket-only hypermarket-only operations operations in 22 countries. Therefore ther is the opportunity in many of these markets to expand its operations to include supermarkets and discount stores. P ossibility of a major major acquisition acquisition in a more developed market – there has been speculation regarding a possible return to the UK or USA.
Strengths W orld’s second largest retailer. Most internationalised internationalised retailer. Dominant (top three) position in 17 out of 31 markets. W orld leader in hypermarkets. hypermarkets. European leader in supermarkets. W orld’s sixth largest discounter. Early mover into many emerging markets. Strong brand in many markets. Enviable Enviable ow n-label n-label portfolio. • • •
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Weaknesses Has consistently underachieved its ow n ambitious grow th targets targets in many countries. Failed to live up to pre-merger expectations expectations in terms of p rojected rojected benefits. Still has an unw ieldy portfolio of stores in some countries countries – e.g. e.g. Franc and Belgium. E-commerce E-commerce development has been lacklustre. Dearth of local management/ management/ expertise expertise in some markets. •
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Opportunities Organic expansion in existing markets. Acquisition of vulnerable local players. Entry into new markets, especially in Asia and South America. Possible entry into selected Eastern Eastern and Central European markets. Launch and expansion of supermarket and discount store operations in markets w here it already has hypermarkets. Possible major acquisition in more mature market. • • •
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Threats Continuing Continuing intensification intensification of competition w ithin more developed markets , especially in Europe. Economic problems in South Americ may lead to to dow nturn in trading environment. Ambitious international expansion plans of major rivals such as W alM a rt r t an a n d T es e s co co . Greater Greater legislation in em erging markets to limit influence of foreignow ned large stores. P otential hostile hostile takeover due to low share price. •
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