Carefour Purchasing Strategy and Plan
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Transcript of Carefour Purchasing Strategy and Plan
Reinventingthe Hypermarket to Delight & DifferentiateJOSÉ CARLOS GONZÁLEZ‐HURTADO
3
Building the future
4
HOW MANY ?
HOW MUCH ?++ HOW
OFTEN ?
‐ 0,8%p.y.
‐ 2,3%p.y.
+ 1,0 %p.y.
The hypermarket challengein Europe
Sales / m² : ‐1,7% p.y.Sales / m² : ‐1,7% p.y.
5
What did consumers & customers tell us?
50 000 European consumers researched
6
The voice of the consumer
HYPERS ARELESS COMPETITIVE
“Prices are not much better than in supermarket”
“I prefer to go to the specialist”
HYPERS ARE LESS ATTRACTIVE
“All hypermarkets are the same”
“It’s boring”
“It’s a hassle”
LOWER RATIONAL BENEFIT
LOWER EMOTIONAL BENEFIT
7
Carrefour has a huge opportunity to recreate the destination store
8
DDDELIGHT
PRICE
FRESH & QUALITY
MULTISPECIALIST
DIFFERENTIATE
EVENTS
SERVICES
COMFORT
Our answer
&
9
DDELIGHT
PRICE
FRESH & QUALITY
MULTISPECIALISTD
DIFFERENTIATE
EVENTS
SERVICES
COMFORT
Our answer
Increase price competitiveness and improve price image
PRICE &
10
•Communicate prices like a specialist
Increase price competitivenessand improve price image
FMCGFMCG
PromotionsPromotions
MarketNon FoodTextile
MarketNon FoodTextile
DELIGHT PRICE
11
Price perception Price visibility
Before (Jan 10) After (Jul 10)
+7% +12%
Improved price image scores in remodeled hyper in Belgium
DELIGHT PRICE
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Increase price competitivenessand improve price image
•Consistent low prices & fewer and deeper promotions
•Communicate prices like a specialist
DELIGHT PRICE
13
• Invest in price competitiveness
•Consistent low prices & fewer and deeper promotions
•Communicate prices like a specialist
DELIGHT PRICE
Increase price competitivenessand improve price image
14
•More Carrefour‐branded products in consumer basket
• Invest in price competitiveness
•Consistent low prices & fewer and deeper promotions
•Communicate prices like a specialist
DELIGHT PRICE
Increase price competitivenessand improve price image
15
Our answer
DELIGHT DIFFERENTIATE
PRICE
FRESH & QUALITY
MULTISPECIALIST
EVENTS
SERVICES
COMFORT&
The Market specialist: freshness, choice & quality
16
+ 33% space + 5% Consumer needs ‐ 13% SKUs+ 33% space + 5% Consumer needs ‐ 13% SKUs
DELIGHT FRESHNESS & QUALITY
17
HamHam CheeseCheese FishFish
VegetablesVegetables BakeryBakery SushisSushis
DELIGHT FRESHNESS & QUALITY
18
80
100
120
140
124
Ecully
128
Venissieux
106
Belgium
118
Spain
Before Planet After Planet
Encouraging sales growth in fresh food
DELIGHT FRESHNESS & QUALITY
19
Our answer
DELIGHT DIFFERENTIATE
PRICE
FRESH & QUALITY
MULTISPECIALIST
EVENTS
SERVICES
COMFORT&
MULTISPECIALIST
20
El PinarEl Pinar AlcobendasAlcobendas EcullyEcully VénissieuxVénissieux Mt St JeanMt St Jean
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Space: + 40%# Consumer needs: + 10%
Space: + 40%# Consumer needs: + 10%
DELIGHT MULTISPECIALISTBeauty
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Space : + 5 % # Consumer Needs: +20%
Space : + 5 % # Consumer Needs: +20%
DELIGHT MULTISPECIALISTFrozen
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Space : + 200 % # Consumer Needs: +150%
Space : + 200 % # Consumer Needs: +150%
DELIGHT MULTISPECIALISTOrganic
24
Space : ‐ 15 % # Consumer Needs: +20%
Space : ‐ 15 % # Consumer Needs: +20%
DELIGHT MULTISPECIALISTHome
25
Space : + 3% # Consumer Needs: +9%
Space : + 3% # Consumer Needs: +9%
DELIGHT MULTISPECIALISTBaby
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Space :‐ 12% # Consumer Needs: ‐10%
Space :‐ 12% # Consumer Needs: ‐10%
DELIGHT MULTISPECIALISTFashion
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Space : ‐5% # Consumer Needs: +15%
Space : ‐5% # Consumer Needs: +15%
DELIGHT MULTISPECIALISTElectronics
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Our answer
DELIGHT DIFFERENTIATE
PRICE
FRESH & QUALITY
MULTISPECIALIST
EVENTS
SERVICES
COMFORT&
A “new store” every 10 days
29
Now in EcullyNow in Ecully
DIFFERENTIATE EVENTS
30
Seasonal area
Events
7 seasons/ year
7 seasons/ year
28 events / year28 events / year
• A new store every 10 days
• 2 000 m² at the entranceof the store
DIFFERENTIATE EVENTS Discovery pole
31
Our answer
DELIGHT DIFFERENTIATE
PRICE
FRESH & QUALITY
MULTISPECIALIST
EVENTS
SERVICES
COMFORT&
All you want, all you need…
32
300 scan machines per store15% of the sales in self scan300 scan machines per store15% of the sales in self scan
DIFFERENTIATE SERVICESSelf scan
33 40
Virtual make up consultantVirtual make up consultant
DIFFERENTIATE
10 minutes/10 Euros10 minutes/10 Euros
SERVICES Beauty Bubble & EZ Face
34 39
DIFFERENTIATE SERVICESNursery
Unique in food retailUnique in food retail
35 42
Unique in food retailUnique in food retail
DIFFERENTIATE SERVICESCooking Coach
36 41
Baby expert in storeBaby expert in store
DIFFERENTIATE SERVICESNurse / Baby advisor
37
Enhancing shopper experience with online before, during and after store visit
Enhancing shopper experience with online before, during and after store visit
Touchscreen for product informationTouchscreen for
product information
Contactless pod to get couponsContactless pod to get coupons
Specific AppsSpecific Apps
DIFFERENTIATE SERVICESWeb‐enabled store
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Gold
Silver
Bronze
Unique in food retail :The more loyal you are, the more you get
Unique in food retail :The more loyal you are, the more you get
DIFFERENTIATE SERVICESNew loyalty program
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Our answer
DELIGHT DIFFERENTIATE
PRICE
FRESH & QUALITY
MULTISPECIALIST
EVENTS
SERVICES
COMFORT&
COMFORT
40
New furniture
New lighting
New colors
New decoration
Look & FeelLook & Feel
DIFFERENTIATE COMFORT
41
DIFFERENTIATE COMFORT
Enlarged alleys: width +20%30% of shelves lowered
Enlarged alleys: width +20%30% of shelves lowered
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Accoustic optimizationAccoustic optimization
DIFFERENTIATE COMFORT
43
DIFFERENTIATE COMFORT
SignageSignage
44
CartsCarts
DIFFERENTIATE COMFORT
45
Snack BarSnack Bar
DIFFERENTIATE COMFORT
46
Our answer
DELIGHT DIFFERENTIATE
PRICE
FRESH & QUALITY
MULTISPECIALIST
EVENTS
SERVICES
COMFORT&
47
For a greener•Reduce CO2 emissions by 40% (by 2020(1))
•Recycle 70% of waste from
stores (by 2020(1))
•Reduce energy consumption
by 30% (by 2020(2))
•Reduce packaging weight
of Carrefour‐branded products by 20% (by 2012 (3))
BRAND
(1) Vs. 2009 / Vs. 2004 / Vs. 2007
48
An important market potentialBRAND
Specific range brands
Core Market
DiscountRange
Potential40 + %Potential40 + %
PRICEPRICE MARGINMARGIN
49
INNOVATIONINNOVATION
Delighting & Differentiating with Carrefour products
50
The approach
51
ConsumersConsumers CompetitionCompetition PerformancePerformance
11Xxxxx-xx/Footer
62 % of the area is composed of modest urban households
7
Source: Nielsen Spectra : careful: the area employed in the analysis is different from the Set area
2 Consumers1 Location 3 Competition 4 Performance 5 Potential
20Xxxxx- xx/Footer
Vé nissieux mall as compared to the other malls in the area
Mapping of the competitionMapping of the competition
•In Lyon landscape, main competitorsfor Vénissieux are:
AuchanPorte des Alpes(Champ du Pont), at East close to A43 highway whichdevelops a turnover of more than€303 M and a mall of 55 stores. The commercial area benefits from the presence of Ikeaand of numerous leading fascias
AuchanSaint Genis-Laval, at South-West, with a turnover of €155 M and a mall of 70 units includingBHVdepartment store
Carrefour Lyon Part Dieu. Destination mall of more than 230 boutiques whoseattraction will increase with the «coursOxygène»mall creation project.
•Territory well served commercially withaggressive competitors in terms of area development
•Very powerful downtown in all tradesoffer
•Suburb with destination specialties
3 Competition2 Consumers1 Location 4 Performance 5 Potential
30Xxxxx-xx/Footer
In 2008, the turnover is mostly achieved with clients of the close areaExcept clients outside the area, the annual spending is penalized by a much lower frequency than the average
Split of the number of clientsSplit of the number of clients
Split of 2008 turnover, tax included
Split of 2008 turnover, tax included
Annual spending per clientAnnual spending per client
279€517€559€
1 155€
0
1 000
2 000
0-10 min 10-20 min 20-30 min Outside area
ƒ
x
Number of annual visits per clientNumber of annual visits per client
579
21
0-10 min 10-20 min
20-30 min
Outside area
Average client basketAverage client basket
55€70€64€55€
0-10 min 10-20 min
20-30 min
Outside area
12% 13%
18%18%
70% 66%
203
Storeturnover
3%
Total Carrefour turnover
0-10min10-20 min20-30 minOutside area
31% 41%
24%16%
38%45%
274 590
Store HHactive clients
4%
Total Carrefour clients
Source: SET; BCG analysis
29 15 12 5
Moy.: 116 000
France1 1 385€ 859€ 692€ 259€
47€ 58€ 60€ 48€France1
France1
4 Performance2 Consumers 3 Competition 5 Potential1 Location
7Xxxxx- xx/Footer
The area close to the store is characterized by low revenue indexes whilemore distant areas are wealthier, in particular the secondary area
Source: SET / INSEE
Revenue indexes (100=France)
Revenue indexes (100=France)
Zone IZone IIZone IIITotal
73100
9693
1 Location 2 Consumers 3 Competition 4 Performance 5 Potential
23Xxxxx-xx/Footer
Fruits andVegetables
Pork meat prod. / CheeseDelicatessen
Meat Poultry
Fish
Bakeryproducts
Household care
Soft drinks
Self-service fresh products
Frozen foodGrocery
Wines, AlcoholsBeers
Hygiene Toiletries
Market and small stores for fresh products; Auchan for FMCGare the main substitution fascias
DepartmentDepartment
TFP
Substitution fasciasSubstitution fascias DepartmentDepartment Substitution fasciasSubstitution fascias
FMCG
Auchan4%
Grand Fr ais 16%Market 52%
Grand Frais 5%Auchan 11%
Small s tores 55%
Small stores 19%
Market 24%Auchan 27%
Leclerc 2%Auchan 7%
Small s tores 76%
Market 10%Auchan 20%
Small s tores 22%Champion 7%
Small stores 17%
Auchan 31%
Auchan 12%
Thiriet 13%
Picard 30%
Small stores 10%
Aldi 10%
Auchan 30%
Ed 6%
Wine merchant 9%
Auchan 19%
Auchan 9%
Nocibé 17%
Yves Rocher 20%
Auchan 7%Pharma. 26%
Parapharma. 32%
x%Source: SET October 2008 wave
49%
28%
17%
45%
19%
13%
9%
17%
23%
Para-pharmacy
59%
26%
11%
10%
FMCG
Ed 12%
Aldi 12%
Auchan 28%
Ed 9%
Lidl 13%
Auchan 26%
% of clients not or rarely buying at the store
3 Competition2 Consumers 4 Performance 5 Potential1 Location
28Xxxxx- xx/Footer
Turnover decreasing by 2,5 % per year since 2002,despite a stable surface
T/Otax excl. (€M)Surface (m²)
13 659 m²13 659 m²13 659 m²
211 M€218 M€222 M€222 M€
230 M€231 M€224 M€
0 m²
10 000 m²
20 000 m²
30 000 m²
2000 2001 2002 2003 2004 2005 2006 2007 2008100 M€
150 M€
200 M€
250 M€
T/Otax incl. outside fuel ( €M)Surface (m ²)5.5% -2.5%
198M€208M€
+21%
Source: 1998-2008 data of Carrefour Controlling
Remodeling of AuchanSt Priest
Opening year: 1966Recent extension: Sept. 2000; ~2 500m²
Opening of SimplyVénissieux1200 m ²
Opening of NettoVénissieux300m²
Remodelingof non-food
Extension of CFRMarket Vénissieux
Opening of Grand Frais
MionsRemodeling of CRFVaulxen Velin
4 Performance2 Consumers 3 Competition 5 Potential1 Location
35Xxxxx-xx/Footer
Performance lower than cluster average for general merchandiseStationery and automobile excepted
Note: Rhône region stores: Ecully, Vénissieux, Mably, Givors, Feurs, Francheville, Vaulx-en-Vel in, Part-Dieu, VilleurbanneSource: CRF Controlling
Gen
eral
mer
chan
dise
DIY
Books
Music
Video
Home
5.2 k€
(3.3 k€)
1.4 k€
(1.0 k€)
4.4k€
(3.9 k€)
0.9 k€
(0.9 k€)
2.6 k€
(3.1 k€)
0.0 k€
(0.1 k€)
6.4 k€
(8.6 k€)
0.6 k€
(1.0 k€)
6.9 k€
(5.5 k€)
0.8 k€
(1.1 k€)
Videogramesand Softwares
Automobile
Leisure
Garden
Stationery
20.4 k€
(23.4 k€)
2.9 k€
(3.4 k€)
10.3 k€
(7.3 k€)
3.0 k€
(2.3 k€)
4.8 k€
(3.9 k€)
0.3 k€
(0.3 k€)
4.6 k€
(3.2 k€)
0.3 k€
(0.3 k€)
7.4 k€
(5.0 k€)
2.4 k€
(1.5 k€)
4 Performance2 Consumers 3 Competition 5 Potential
DepartmentDepartment Turnover/m²Turnover/m²Half-net
margin / m²Half-net
margin / m² DepartmentDepartment Turnover/m²Turnover/m²Half-net
margin / m²Half-net
margin / m²
xx k€(xx k€) = cluster averageCluster average xx k€ < cluster average
1 Location
25Xxxxx-xx/Footer
Casino and Leclerc: not enough products compared in non-food
98
Carrefour VV*
Auchan*
Carrefour Vénissieux: more expensive in most FMCG (except TFP) and non-food departments
Self-service fresh products
Non-food
Liquids
Household care,
Toiletries, Hygiene
Grocery
DepartmentDepartment Price positioning (base 100 = Vénissieux )Price positioning (base 100 = Vénissieux )
Carrefour VV*
Source: Nielsen; cash desk scanning performed from September 28th to October 10th, 2009; * Auchan St Priest, Leclerc St Priest, Carrefour Vaulx en Velin, and Casino Vénissieux
Casino*Leclerc*
102 10496 98
Auchan*
Leclerc*
102 10494 96
Auchan*
Casino*
Leclerc* Auchan*
Casino*Auchan*
Casino*
Leclerc* Carrefour VV*
989290 106 108
102 10494 9692 106 108
102 10494 96 9892 106 108
102 10494 96 9892 106 108
Carrefour VV*
90
90
Carrefour VV*
90
3 Competition2 Consumers 4 Performance 5 Potential1 Location
14X xxxx-xx/ Foot er
In May 2009, clients identify numerous black spots regarding the store, and in particular the mall, the trolleys and the circulation…
Perception of Carrefour Vénissieuxpurchasing course criteria – client survey May 2009S c or e
Ma g a si nS c o re R é gi o n
S co r e Na ti on a l
M ei lle u r ma ga s ind e la r é gi o n
S c o r e 74 79 91 Ecul ly 129
153 134 136 Ecul ly 1790% 140 139 143 Ecul ly 1730% 124 83 74 Ecul ly 1500% 115 98 106 Ecul ly 1440% 107 77 88 Ecul ly 1340% 96 93 97 Salai se sur sanne 1360% 85 84 127 Gi vors 1590% 71 84 103 Ecul ly 1290% 67 67 71 Ecul ly 860% 66 36 53 Ecul ly 700% 65 28 39 Gi vors 920% 62 73 89 Ecul ly 1410% 26 30 44 Lyon par t dieu 48
3 16 42 Ecul ly 66-5 16 15 Feurs 62-6 0 10 Ecul ly 20-6 5 19 Gi vors 39
-11 25 79 Gi vors 96-21 70 66 Salai se sur sanne 143-27 -45 -16 Ecul ly 15
0% -29 -21 -21 Feurs 490% -33 -48 -23 Ecul ly 10% -130 -54 -21 Ecul ly 149
Car ref our VENISS IEUX
ERR EU R PRI X RAY ON CAISSE
C ADDIESC IRCULATI OND ISPONI BILITE DU PERSO NNELPERCEPTI ON PRI X
PERCEPTI ON PRI X STA TION SERVIC E
N B : la c o u le ur d e f on d i nd i qu e l a zo n e d e s c o re
S ATISFACTI ON G ENERALE D EC LAREE
A MABI LITE HO TES SE DE CAISSE
A MABI LITE HO TES SE D'A CCUEIL
A TTEN TE EN C AISSESD ISPONI BILITE DES PROMOS
LOCALISA TION DES PRO DUITSA TMOSPHERE GENERALE
R APPORT QUALITE PRIXA MABI LITE DU PERSONNEL
D ISPONI BILITE PR ODUITS HABI TUELS
GALERIE MARCHA NDE
PRO PRETE MA GASIN
Le parcours client nouvelle formuleC ri tère s tri és p ar sc ore dé cro i ssan t ( sau f s ati sfac tio n g é né ral e )
A CCES MAGASI N
C HOIX ALIMEN TA IREPA RKING
C HOIX NON ALIMENTA IRE
A TTEN TE STAND ACCUEI L
R EPERA GE PRI X
8 4 %
5 8%
6 5 %
5 2%
68 %
7 2 %
6 0 %
61 %
6 5 %
80 %
7 1 %
7 0 %
7 7 %
63 %
6 3%
5 5 %
6 6 %
5 8%
4 4 %
4 1%
5 1%
5 5 %
5 0 %
4 0%
6 %
37 %
2 9%
3 3%
2 2 %
1 9 %
2 6 %
2 2%
17 %
6 %
12 %
13 %
7 %
8%
7%
9 %
3%
8 %
1 6%
19 %
8 %
7 %
8 %
2 %
9 %
5 %
5 %
1 4 %
1 0%
9 %
1 0%
1 6%
1 4 %
13 %
1 6%
1 4 %
1 5%
29 %
23 %
3 2 %
2 6 %
2 8%
3 4%
3 1 %
3 6 %
3 1 %
3 7 %
4 3 %
1%
1 %
0 %
0 %
0 %
0 %
4 %
1 %
3 %
1 %
1 %
3%
1%
0 %
6 %
4 %
5 %
6 %
6 %
9 %
5%
7 %
6 %
15 %
Très sat isf ait
A ssez sati sfait
Pas tel lement sat isf ait
Pas du tout sat isf ai t EXCELLENT ALERTE
-600+300 +150 +1 00 +75 +50 0
STANDAR D ACCEPTABLECIBLE DANGERS to re sco re l argely h ighe r t han th e regi ona l / nat io nal sc ore
St ore score large ly lo wer th an reg ion al / nat io nal sco re
S ource: SET cli ent barometer st udy May 2009
2 Consumers1 Location 3 Competition 4 Performance 5 Potential
Consumer profile
Catchment area
Client perception
Competition map
Alternative banners
Competitive positionning
Commercial equation
Impact of recent openings
Analyzes in the product cat.
approachThe
52
Consumer data
Consumer data
Store operational
data
Store operational
data
Competitorsdata
Competitorsdata
Magbook® Magbrick®
Store 1
Store 2
Store 3
approachThe
53
FIRST RESULTS
54
(France) (France) (France) (France)(France) (Spain)(Spain)(Belgium)
131 128 132
173
124118
126
275
80
100
120
140
160
180
200
Beauty Bio Market Frozen Baby Home Electronics Clothing
Sales evolution by pole
Year before Planet 1st weeks
First results
55
Consumer results
DELIGHT
DIFFERENTIATE
Newness (offers more to discover)
Makes you prefer Carrefourvs
other food retailers
0% 10% 20% 30% 40% 50% 60% 70% 80%90%100%
Makes you feel well
Gives you more pleasure
Makes you want to come back 94%
85%
93%
86%
With regards to before, you would say about this new Carrefour planet store, that it…?
Yes No
85%
56
First results ‐ Fidelity Program
228
151
136
121
150
223
137
80
100
120
140
160
180
200
220
240
Bio Beauty Market Frozen Home Clothing Baby
Increase in number of clients by pole
Cardholders year before
Cardholders Planet 1st weeks
57
Conclusion
We are very encouraged by the first results
We see a huge opportunityfor Carrefour to recreate the destination store
We didn’t renovate,we invented
58
EFFICIENCY
CULTURE & PEOPLE
DELIGHT An essential step to reinvent the hypermarket…
… that goes hand in hand with enhanced efficiency & committed people.