How Carrefour is Targeting Omnichannel with Global Transformation Plan

Carrefour’s global transformation plan has omnichannel, standardisation and customer focus at its core. Simplified structures mean market-wide brand harmonisation, fewer management layers and a ~10% range rationalisation. 

Carrefour will target 2022 e-grocery sales of €5bn (from €850mn) as it seeks to win leadership in French e-grocery. Convenience is a priority. Cash & carry will see extra investment. A new China strategy foresees tie-ups with tech giant Tencent and fresh specialist Yonghui, extending Carrefour’s digital ecosystem presence in the region.

Ecommerce & Digital Ecosystem Management

The primary focus of Carrefour's new strategy is their ecommerce business. In pursuit of a €5bn global food ecommerce business by 2022, it will invest €2.8bn over the next five years (6X more than current investments). Carrefour will also introduce a variety of measures to make its online services more customer-focused. 

These measures significantly enhance Carrefour’s capacity to gain ground in ecommerce. Carrefour now has a chance to lead in some ecommerce areas like rapid fulfilment by using its own network – the scale of which gives it an advantage over rivals. 

Store of the Future

Carrefour is refocusing its efforts on smaller formats – targeting an additional 2,000 convenience stores in major cities over the next five years. These formats are better future-proofed as consumer demand will only grow due to societal shifts towards smaller households. Long-term, this will steer Carrefour further from its big-box origins towards more relevant channels, like c-stores and proximity. 

Engagement & Retention

Carrefour will enhance its product ranges to accommodate shopper preferences. It has targeted €5 billion in organic produce sales by 2022. This will be achieved by expanding organic-dedicated sales space to contain a broader range. This shift to target organics is being driven by increased consumer interest in health, particularly in France. From a retailer perspective, this focus on organics is partly driven by attractive margins.

It also wants to generate one-third of sales through Carrefour-branded products by 2022. More private label sales will clearly benefit the retailer’s margins. There is an obvious risk to branded suppliers being delisted as Carrefour focuses on its house brands. Suppliers will need to consider working alongside Carrefour around own-brand, particularly if their goods are in an at-risk category. 

Supply Chain & Fulfilment

Carrefour will make some significant enhancements to its fulfilment capabilities across its online businesses. It will invest in speed of fulfilment (widening the availability of one-hour delivery services) and click & collect (which will be available in more than half of stores by 2022). These measures are driven by increasing consumer desire for instant gratification, and Carrefour is right to respond. The changing supply chain will place new demands on inventory agility and may require pack innovation to support new fulfilment models.

Planning for an unpredictable future is challenging. PlanetRetail RNG offers go to market intelligence to:

  • Understand the reinvention of the future store
  • Navigate tomorrow's ecommerce landscape
  • Develop the capabilities needed to find growth in a digital world
  • Make effective decisions on which markets to invest in
  • Target strategies that capitalise on future growth opportunities

For more information about how Carrefour and other omnichannel retailers are reinventing their core business strategies, please contact us by completing the "Contact us" form.   

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