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053 - Jason Dwi Rendrahadi Putra Astono - Carrefour
053 - Jason Dwi Rendrahadi Putra Astono - Carrefour
Carrefour, one of the world's largest and most recognized retail chains, was founded in
France in 1959 by two visionary individuals, Marcel Fournier and Louis Defforey. Their
concept was revolutionary for its time, as it introduced the idea of a large self-service
supermarket, combining a variety of products under one roof. The name "Carrefour" itself
means "crossroads" in French, reflecting their aim to create a central hub for shoppers to
find everything they needed conveniently.
Carrefour officially began operations on June 3, 1959, when the first store opened in
Annecy, France. This marked the beginning of a retail revolution, as it departed from the
traditional small, specialized shops prevalent at the time. Carrefour's self-service model
allowed customers to explore a wide range of products at their own pace, providing a more
efficient and enjoyable shopping experience.
Since its inception, Carrefour has witnessed remarkable growth and expansion. It rapidly
became a dominant force in the retail industry, not only in France but internationally as
well. Carrefour's success was built on its ability to adapt to evolving consumer demands
and preferences. The company continuously introduced innovative concepts, such as
hypermarkets (a combination of a supermarket and department store) and later, a focus on
convenience stores, to cater to different customer segments.
Over the years, Carrefour achieved several key milestones. In the early 1960s, it introduced
the concept of the hypermarket, a format that would become central to its success. In 1976,
Carrefour opened its first store outside of France, in Belgium, marking the beginning of its
international journey. In the 1990s and 2000s, Carrefour continued to expand globally,
entering markets like China, Brazil, and the United Arab Emirates.
Moreover, Carrefour has consistently emphasized sustainability and social responsibility,
pioneering efforts to reduce environmental impact and support local communities. They
have initiated programs to promote responsible sourcing, waste reduction, and energy
efficiency. These endeavors reflect Carrefour's commitment to being a responsible
corporate citizen.
In summary, Carrefour's journey from its founding in 1959 to its present status as a global
retail giant has been marked by innovation, adaptability, and a commitment to customer
satisfaction. Its pioneering concepts and international expansion have made it a household
name in many countries around the world. Through continuous evolution and a focus on
sustainability, Carrefour has demonstrated its ability to not only meet customer needs but
also contribute positively to the global retail industry.
Chapter 2 Business Model
Carrefour generates revenue primarily through its retail operations. As one of the
world's largest hypermarket chains, Carrefour sells a wide range of products
including groceries, apparel, electronics, household goods, and more. The company
earns money by selling these products to consumers at a markup from the cost price,
which covers expenses like procurement, operating costs, and profit margins. In
addition to physical stores, Carrefour also operates an online platform, allowing
customers to make purchases via e-commerce. This omnichannel approach has
become increasingly important in today's digital age, providing additional revenue
streams for the company.
Carrefour's target market is broad and diverse, reflecting its status as a multinational
retail giant. The company caters to a wide range of consumers, encompassing
various age groups, income levels, and lifestyles. While Carrefour's offerings are
designed to meet the needs of a diverse customer base, it primarily focuses on
families, young professionals, and cost-conscious shoppers who are looking for a
wide selection of products at competitive prices. This inclusive approach allows
Carrefour to capture a significant portion of the retail market in the regions where
it operates.
1. Product Diversity
Carrefour offers an extensive range of products, from groceries to electronics,
apparel, home goods, and more. This diverse selection appeals to customers
looking for a comprehensive shopping experience.
2. Competitive Pricing and Promotions
Carrefour employs a pricing strategy that focuses on offering value for money.
Regular promotions, discounts, and special offers cater to cost-conscious
customers, providing them with opportunities to save on their purchases.
3. Private Label Brands
Carrefour has its own private label brands, which often offer products of
comparable quality to well-known brands at a lower price. This appeals to
customers seeking affordability without compromising on quality.
4. Sustainability Initiatives
Carrefour's efforts to promote sustainability, including responsible sourcing and
environmental initiatives, resonate with environmentally-conscious customers.
It allows them to align their values with their shopping choices.
5. Convenience and Digital Integration
Carrefour invests in technology and digital platforms to enhance the shopping
experience. This includes e-commerce options, mobile apps, and other digital
services that cater to tech-savvy customers and those seeking convenience in
their shopping journey.
6. Customer Engagement and Loyalty Programs
Carrefour implements customer loyalty programs, providing rewards, discounts,
and special offers to incentivize repeat business and build customer loyalty.
Carrefour operates in a highly competitive retail industry, facing competition from a variety
of both global and local players. Some of its major competitors include:
1. Walmart
As one of the largest and most successful retail chains globally, Walmart competes
directly with Carrefour in several markets. Walmart's vast network of stores, strong
logistics capabilities, and aggressive pricing strategies make it a formidable rival.
2. Tesco
Tesco is a prominent British multinational retailer with a significant presence in
Europe and Asia. It competes with Carrefour, particularly in regions like the UK,
Central Europe, and parts of Asia.
3. Aldi and Lidl
These German discount supermarket chains are known for their low prices and no-
frills shopping experience. They often compete with Carrefour in terms of pricing
and attracting cost-conscious shoppers.
4. Amazon
With its acquisition of Whole Foods and the expansion of its Amazon Fresh and
Prime Now services, Amazon has become a major competitor in the grocery and
retail industry, including markets where Carrefour operates.
5. Metro AG
Metro is a German multinational retail company, primarily focused on wholesale
distribution. In some regions, it competes with Carrefour's hypermarket format.
1. Walmart
a. Strengths
Extensive global reach, a wide range of products and services, strong supply
chain and logistics capabilities.
b. Weaknesses
Relatively lower emphasis on sustainability compared to Carrefour, some
markets may face stiff competition from local players.
2. Tesco
a. Strengths
Strong presence in the UK and certain international markets, diverse product
offerings including non-food items, established brand reputation.
b. Weaknesses
Faced challenges in some international expansions, not as widespread a
global presence as Walmart or Carrefour.
3. Aldi and Lidl
a. Strengths: Focus on low prices and efficiency, streamlined operations,
growing international presence.
b. Weaknesses: Limited product variety compared to Carrefour, smaller store
formats.
4. Amazon
a. Strengths
Extensive e-commerce capabilities, innovative technology and services,
strong customer base and loyalty programs.
b. Weaknesses
Limited physical store presence (although this is changing with
acquisitions), potential regulatory challenges in some regions.
5. Metro AG
a. Strengths
Strong focus on wholesale distribution, established B2B relationships,
global presence.
b. Weaknesses
Limited presence in the consumer-facing retail market compared to
Carrefour.
1. Omnichannel Strategy
Carrefour recognizes the importance of both physical and online retail in the
modern market. It invests in e-commerce platforms, enabling customers to shop
online and offering services like home delivery and click-and-collect.
2. Product Diversity and Quality: Carrefour's wide range of products and commitment
to quality, including their private label brands, provides customers with a diverse
selection of high-quality options.
3. Pricing and Promotions
Carrefour employs competitive pricing strategies, promotions, and loyalty
programs to attract and retain cost-conscious shoppers.
4. Sustainability Initiatives
Carrefour's focus on sustainability and responsible sourcing appeals to
environmentally-conscious consumers, providing a competitive edge in this
increasingly important aspect of retail.
5. Customer Experience and Convenience
Carrefour emphasizes creating a positive shopping experience, focusing on store
layout, customer service, and digital integration to enhance convenience.
6. Innovation and Technology Adoption
By leveraging technology and innovation, Carrefour enhances its operations, from
supply chain management to customer engagement. This allows it to stay
competitive in a rapidly evolving industry.
In summary, Carrefour competes with its rivals by leveraging its strengths in product
diversity, pricing strategies, sustainability efforts, and a focus on customer experience. By
understanding the strengths and weaknesses of its competitors, Carrefour is able to position
itself effectively in the highly competitive retail landscape.
Chapter 5 Operation
Carrefour had over 12,000 stores in more than 30 countries worldwide. These stores
include hypermarkets, supermarkets, convenience stores, and other formats. Carrefour
operates its stores as part of a global retail network, and the operation of each store
follows a standardized set of procedures and guidelines. The core operations of
Carrefour stores include:
1. Store Opening and Closing: Carrefour stores typically have set opening and
closing times, which may vary depending on location and local regulations.
Store staff are responsible for ensuring the store is ready for business when it
opens and that it is properly closed and secured at the end of the day.
2. Customer Service: Store employees are responsible for providing excellent
customer service. This includes assisting customers, answering questions,
resolving issues, and ensuring a positive shopping experience.
3. Inventory Management: Store staff monitor inventory levels, restock shelves,
and conduct regular inventory checks to ensure products are available for
customers. They also handle returns and manage damaged or expired goods.
4. Checkout and Payment: Cashiers and checkout staff handle customer payments,
whether through cash, credit/debit cards, or digital payment methods. They also
scan and bag items, provide receipts, and process returns.
5. Merchandising: Store layout and product placement are critical to maximize
sales. Carrefour stores use planograms and visual merchandising techniques to
organize product displays and create an attractive shopping environment.
Carrefour's store layouts are designed with the aim of providing a convenient and
efficient shopping experience. The specific layout may vary by store format
(hypermarket, supermarket, convenience store), but common elements include:
1. Store Sections: Stores are typically divided into sections or departments, such
as groceries, apparel, electronics, household goods, and more. Each section is
organized to make it easy for customers to find what they need.
2. Aisles: Aisles are wide and well-organized, with clearly marked signage to help
customers navigate the store. Special promotions and displays are often placed
at the end of aisles to attract attention.
3. Checkout Counters: Checkout counters are strategically placed near store
entrances and exits for convenience. There may be multiple checkout lanes to
handle customer traffic efficiently.
4. Fresh Produce and Perishables: In supermarkets and hypermarkets, fresh
produce and perishable items like meat and dairy are often located near the
entrance, so customers can access them quickly.
5. Non-Food Departments: Depending on the store format, non-food departments
such as clothing, electronics, and home goods may be located in dedicated
sections within the store.
1. Demand Forecasting: Carrefour uses historical sales data, seasonality, and other
factors to forecast demand for products. This helps in determining how much
stock to order.
2. Supplier Relationships: Carrefour maintains strong relationships with suppliers
to ensure a steady supply of products. They work closely with suppliers to
coordinate deliveries and manage inventory efficiently.
3. Shelf Stocking: Store employees regularly restock shelves based on inventory
levels and sales data to ensure that products are available to customers.
4. Inventory Tracking: Carrefour uses technology such as barcode scanners and
RFID (Radio-Frequency Identification) systems to track inventory levels in
real-time. This allows for accurate inventory management and minimizes
overstocking or understocking issues.
5. Inventory Audits: Regular inventory audits and cycle counts are conducted to
verify physical inventory against recorded levels and to identify any
discrepancies or theft.
In-Store Service
1. Well-Organized Aisles: Aisles are designed for easy navigation, with clear
signage and categorization of products.
2. Knowledgeable Staff: Employees are available to assist customers in finding
products, providing recommendations, and answering questions.
3. Checkout Counters: Multiple checkout counters are usually available to
minimize wait times during peak hours.
4. Fresh Produce and Perishables: In supermarkets and hypermarkets, there is a
focus on maintaining the freshness of perishable items like fruits, vegetables,
meat, and dairy.
2. Wide Product Selection: Customers can access a wide range of products online,
similar to what is available in physical stores.
Carrefour has customer loyalty programs designed to reward regular shoppers. These
programs may include:
1. Membership Cards: Customers can sign up for a membership card that allows
them to earn points on their purchases. These points can be redeemed for
discounts or rewards.
2. Exclusive Offers and Promotions: Loyalty program members often receive
exclusive offers, early access to sales, and special discounts.
3. Personalized Recommendations: Carrefour may use data from loyalty program
members to offer personalized product recommendations based on their
shopping history.
4. Points for Online and In-Store Purchases: Loyalty program benefits can often
be earned both online and in physical stores, providing flexibility for customers.
Please note that the specifics of Carrefour's customer loyalty programs may vary by region,
so it's recommended to check with the local Carrefour branch for detailed information.
Chapter 7 Sustainable Practices
Carrefour is committed to sustainability and has implemented various practices to reduce its
environmental impact. Some of these efforts include:
1. Responsible Sourcing: Carrefour works to ensure that products sold in its stores are
sourced responsibly. This includes initiatives to support sustainable agriculture, reduce
deforestation, and promote ethical supply chain practices.
3. Waste Reduction and Recycling: Carrefour aims to minimize waste generation and
increase recycling rates. This includes initiatives to reduce food waste, promote
recycling of packaging materials, and manage waste in an environmentally responsible
manner.
Energy Usage:
Carrefour uses energy in various aspects of its operations, including:
1. Store Operations: Energy is used for lighting, heating, cooling, and powering
equipment in stores. Carrefour employs energy-efficient technologies and practices to
reduce consumption.
Water Usage:
1. Store Operations: Water is used for various purposes in stores, including sanitation,
cleaning, and landscaping. Carrefour implements water-saving technologies and
practices to minimize consumption.
2. Supply Chain: Water is indirectly used in the production and processing of products
sold in Carrefour stores. The company works with suppliers to promote water
conservation throughout the supply chain.
Waste Management:
Carrefour employs various strategies to manage waste:
2. Food Waste Reduction: Carrefour implements measures to reduce food waste, including
donations of surplus food to charitable organizations and the use of innovative
technologies to track and manage inventory.
Carrefour is actively involved in various initiatives to give back to the communities where it
operates. Some of these efforts include:
2. Support for Local Producers: Carrefour often collaborates with local farmers and
producers, providing them with opportunities to sell their products in Carrefour stores.
This helps stimulate the local economy and supports small-scale agriculture.
Giving to Charity:
Environmental Initiatives:
Carrefour's environmental initiatives are designed to minimize its environmental impact and
promote sustainability. Some of these initiatives include:
1. Reducing Carbon Emissions: Carrefour aims to reduce its carbon footprint through
energy efficiency measures, transitioning to renewable energy sources, and optimizing
transportation and logistics operations.
3. Waste Reduction and Recycling: Carrefour works to minimize waste generation and
increase recycling rates. This includes efforts to reduce food waste and promote
recycling of packaging materials.