Carrefour bets on the discount, through a review of its business model

“Today, Carrefour is much better equipped to face the future. » This is the observation made by Alexandre Bompard, general director of the distribution group, on Tuesday, November 8, when announcing its strategic plan for the next four years, called “Carrefour 2026”. For its start-up, the company, which reached a turnover of 81,200 million euros in 2021, will increase its investments, up to 2,000 million euros per year, compared to the current 1,700 million.

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After putting the company afloat since his arrival in July 2017, the CEO is facing a review of his business model to adapt it to the inflationary and ecological economic situation. In France, in its stores, Carrefour is not seeing a drop in sales volume, but a change in consumer behaviour: they come more often, make smaller purchases with more private label products and lower prices, looking for the better offers to better manage the End of difficult months.

A context that pushes Carrefour to accelerate the development of its own brand, which will be the backbone of its business model, with the aim of reaching 40% of the group’s turnover in food products in 2026, compared to 33% in 2022 and 25% in 2018. “It is an important break. This means that one of every two food products that we will market will be of the Carrefour brand.said Tuesday, Mr. Bompard, from the company’s headquarters in Massy (Essonne).

“Certified sustainable products”

Given the concern about purchasing power, Carrefour will also import its brand of cash and carry, Atacadao, which is a success in Brazil, where it should have more than 470 stores by 2026. This high-volume pallet sales model is similar to that of Metro or Costco, open to individuals and professionals, but without the obligation to have a card or subscription to make your purchases there. A first store will be tested in September 2023 in Ile-de-France.

The group will continue to develop its other discount brand, Supeco, especially in Spain, until reaching a total of 200 stores in 2026, that is, 80 more than today. Last anti-crisis resource, the hypermarket, whose model seemed doomed. It will be a strategic pillar in the race for low prices. “I believe in the value of this format. It is a bulwark against inflation, as long as it fully assumes its popular vocation, and its role as the first discount format”launched Mr. Bompard.

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