Xing Rui (Josie)Tang Siyang (Grace)Lin Zhihan (Chilly)Li Qinyue (Carol)

Introduction

The Carrefour group: a world leader in distribution An international retailer

promoting the growth of local economics

History

1959:Carrefour was established.1960:The first Carrefour store opened and was an immediate success.1963:Carrefour established its first hypermarket.1970:The company went public.In the 1970s-80s:International Growth

In the 1990s:Carrefour continued growthIn the late 1990s and Beyond: Strategic

AcquisitionsIn 2008: Continuing growth in a challenging

environment

History

Retail Industry

The exchange of food and weapon

Traders

ShopsStores(Specialty shops)

Department store

Industry Analysis

Shopping Centers and Malls

Emerging Markets

China

India

Russia

Global Issue

China

Largest City

Second and third tier cities

Until 1990s, foreign retailers began to be allowed in.

Wal-Mart: The Announcement of Openness

India

Metro: Planning to Corporate with Local GovernmentTesco: A Successful entry

Fierce competition with the traditional trade.

Risks

Business management of Retail Industry in emerging markets.The counterfeit problem.

The transportation cost

Recruiting local people

Future Trends

Approaching the market

Innovating

Market leader Brand recognition Focus on competitive prices

Company Analysis--Strengths

--WeaknessStagnant sales in France Declining of profitability Losses for on-line business

Strong growth potential in Asia New stores Agreements with Coop Atlantique

Opportunities

Threats Stiff competition from discount retailers in FranceIncreasing labor costs in EuropePoor retailing outlook in the Eurozone

Global Expansion

Win-win target: both in France, and all subsidiaries

Encourage local economy

1960S： NONFOOD BUSINESS

PARIS SOUTH AMERICA

UNDEVELOPED COUNTRIES

OCCUPIED MARKETS:

Examples

Expanded Steps

STARTED AS A FAMILY STORE

Conducting Social Audits

Local Specialties

Labors: wages and hours

Sustainability

Economic

Social

Environmental

Unique logistics

Utility

Diversified transportability

Use of geographic resources

Good traceability

Automated pallet traceability system

Alleviate environmental impact

A. Rail

B. River

C. Truck load

PURPOSES: GOODS QUALITY AND SAFETY, TIME-EFFICIENCY

New Departments

Retain the original architecture

Proper sites to build

Traffic jam vs. public safetyUrban

Rural

Recruitment

SKILLED people

Fair ranking management

Training and motivation

Men and women Local and expatriate staff

Tesco

Metro

Wal-Mart

Main Competitors in Retail Market

Carrefour Wal-Mart TescoMetro Others

Competitors

The humanistic care

----Every shopper needs every little help

Korean Market

Tesco

The first movement among the top

The fourth largest global retailer

The most potential competitor

Metro Cash & Carry: No credit account

Metro GroupNO.1 in German Retailer Market

Media Markt, Saturn: Electronic Retailers

Real (including Extra), Galeria Kaufhof

Experiences in self-service wholesale

The largest one in the world’s retail industry

Wal-Mart

In 1990, beating Sears and K-Mart

The most significant reason for customers’ shopping there----Low Price

The 100th store in China in 2007

Chinese Markets’ competition between

two giants

Quick Expansion---from metropolis to central and western of China.Local Product SourcingFlexibility and Creation

Short-term Recommendations

Experienced Employees Local specialists vs. Expatriate staff

Political involvement Political inclination caused to profit crisis (China)

Improving company's image

Making more effort on global expansion

Long-term Recommendations

On track to attain 2008 objectivesContinuing and deepening action planCarrefour well positioned to continue

growing in a challenging environment• Essentially a food retailer• Multi-format• Increasingly international• Solid debt profile

Conclusion

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