Group Members

Muhammad Naeem FA12-MBT-059

Zulkifal RazaFA12-MBT-093

Muhammad AbidFA12-MBT-043

Asad Abbas LodhiFA12-MBT-049

THE GLOBAL HYPERMARKET

About Carrefour Carrefour was founded by Marcel Fournier,

Denis Defforey and Jacques Defforey in 1959. In 1960, Carrefour opened its first supermarket

in Annecy, Haute Savoie, France. From this first outlet, Carrefour transformed itself into a worldwide entity with more than 15,600 stores spanning 34 countries around the globe.

In 1963, Carrefour invented a new store concept known as the hypermarket.

It is the second largest retailer in the world. The first Carrefour hypermarket opened its

doors in Sainte-Geneviève-des-bois, offering food and non-food under the same roof, boasting a floor area of over a 2,500 sqm.

The hypermarket offers one-stop shopping, self-service and customer convenience facilities, as well as free parking and low prices on a wide selection of goods.

ABOUT CARREFOUR

RECENT DEVELOPMENTS On 28 July 2010, Carrefour launched four quality

lines of fresh products in Malaysia. On 23 December 2010, Carrefour announced the

opening of its two new stores at Seksyen 23, Shah Alam and Puchong Utama, Puchong, Selangor.

In July 2011, Carrefour opened its first store on the Penang Island and the second store on the mainland end of September 2011.

A few more stores are slated to open in the near future.

What is Hypermarket Supper store as defined as a single level

self service stores selling a wide range of food, or food and non food good with at least 2500 square meter trading floor space and sported by car parking

Hypermarket are the stores with 5000 squares meter and remaining characteristics are same with supper store

Developing the Hypermarket Concept

Carrefour is a French brand which is considered with an inspiration for well known hypermarket concept which was copied from America

Marcel Fournier and Denis and Jacques Defforey capture this imagination from retailing conference in Dayton Ohio.

The idea was to be a waste once stop outlet offering food and general merchandise at low price

In its earlier stages in France this idea was positively accepted by the French consumer market.

Carrefour Hypermarket Carrefour hypermarket consist

of huge shopping aisles in a 10000 square meter combined with free car parking

Most item are offered on self service bases so customers are free to shop in their own way

Some of the areas provide personal services to insure customers help when it is needed

Private labels were also introduced in 1995 available only at retailer stores

Expanding into International Markets

After 35 year experience Carrefour expand its operation outside the local boundaries.

This signaled the first phase of retailer‘s international growth. but it faced problem on the bases of cultural dissimilarities, and due to external environmental factor.

In 2nd phase two key forces were deriving to Carrefour's market development

The first factor was expansion plan affected by rang of govt initiatives.

The 2nd factor was due to Carrefour’s international expiration

Learning From Mistake

Carrefour’s experience of moving into new markets has not always been so successful.

The 1st mistake was to move in American market from where the concept of hypermarket was taken

Other mistake was products were displayed at conventional supper market fixtures and in store signage were confined to pricing.

Management decided to relay on words of mouth instead of launching any major promotional complain.

How did recover the mistakes

After an initial of poor sale a more proactive advertising approach were adopted.

Changes were also made to the stores it self with different mixes of food to general merchandise being tried.

Management had hoped that this new fury into the market with its discount store approach, smaller size and warehouse club layout, would appeal more strongly to local consumers.

Carrefour Today With the top 100 global retailers already responsible

for 20% of the world market The power of leading players such as Carrefour and

wall mart is clear. The 1999 figure for Carrefour's showed an 8.2%

increase in net sales with 57% generated out side the domestic market.

Carrefour’s must operate with in the constraint of a verity of local and national govt restriction.

These are designed to control the limited amount of retail space available.

Growth is only possible through the acquisition of the competitor base locally

The retailer as followed this growth by acquisition route with some success.

Carrefour acquired the euremarchegrow and the montlaur chain of outlasts, allying into equal the sale volume of market leader laclerc.

Carrefour Today

The Promodes Merger In August 1999 in a deal worth 15.6 billion

Euros, Carrefour joined forces with Promodes to create the second largest retail group in the world

With the presence in 26 different countries and headquartered in France, the new group became the largest retailer in Europe.

The synergies between Carrefour and Promodes are readily apparent.

Both companies began as family firms

Senior managers from each of the business have declared their joint intention to make the most of strong growth prospects to do battle for the world wide retail market.

All group’s Stores and Employees Information

Stores Employees

9,000 250,000

Hypermarkets Discount stores

680 3200

The sales in 1999 of both 54 billion Euros

Benefit of Merger There is the potential for increased profitability,

with a three-year doubling of net profits sought. The attraction of the shareholders is obvious,

and business will becomes part of one of the largest businesses on the Paris stock exchange.

Employees are also looking forward to the excellent range of career opportunities which the merger will create.

Impact of Merger It seems that the only weak areas for Carrefour and

Promodes are in Germany and the US, although both of these regions are strongholds for Wal-Mart.

The company acquisition of UK retailer Asda seems a clear signal of intent.

Some Analysts predict that within five years overseas earnings may generate one quarter of Wal-Mart earnings.

Merger reaps the benefits both parties are seeking, however it seems that the move s likely to promote a flurry of other acquisitive moves within the global retailing sector.

Carrefour Moved Forward Carrefour moved forward into new Millennium,

the situation in its saturated domestic market will become more entrenched.

Maturing of other retail markets around the world, competition will increase further and the industry’s obsession with low price will further impinge upon the bottom line

Carrefour had already started addressing the difficulties which this situation imposes.

The business continue to be committed to global expansion.

Carrefour’s difficulties associated with entering the Japanese market, Carrefour’s previous global experiences, positive and negative, should help the retailer to make the most of this opportunity.

Carrefour followed its usual approach of modifying its outlets to suit local needs, recruiting and training the necessary personnel from the local area.

Carrefour also worked with local distributers, combining consumer requirements for local products with the careful introduction of foreign brands.