Carrefour Sa · EURONEXT:CA
Carrefour Sa — Investor Day (April 2017)
108 slides from Carrefour Sa's investor day presentation, Apr 26, 2017
Slide 1: Carrefour Investor Day: L'expérience omnicanale Carrefour
CARREFOUR INVESTOR DAY “L’EXPÉRIENCE OMNICANALE CARREFOUR” April 26, 2017 26 April 2017 | 1
Slide 2: Agenda
9:00 AM – 10:30 AM • Opening remarks • Introduction • Multiformat & Omnichannel model • Q&A session 10:30 AM – 10:45 AM • Break 10:45 PM – 12:20 AM Agenda • CRM & Data • Supply Chain • Q&A session • Closing remarks 12:20 AM – 2:00 PM • Lunch, with demos of products, solutions and concepts 2:00 PM –
Slide 3: Plan
« L’EXPERIENCE OMNICANALE CARREFOUR » 01. Introduction: The empowered consumer 02. Rolling out Carrefour’s Multiformat & Omnichannel model Plan 03. Using CRM & data to engage with customers 04. Deploying an adapted supply chain 05. Conclusion 26 April 2017 | 3
Slide 4: Operational Speakers
OPERATIONAL SPEAKERS Bernard Buono Anne-Laure Klein Clément Marty Florence Batchourine Advisor to the Group Strategy Director Digital Marketing, Loyalty Supply Chain Director, Chairman & CEO and Innovation Director, Carrefour France on Strategic Marketing Carrefour Spain Pascal Clouzard Hervé Parizo
Slide 5: Introduction: The empowered consumer
01. Introduction: The empowered consumer 01 Bernard Buono Advisor to the Chairman & CEO on Strategic Marketing 26 April 2017 | 5
Slide 6: Retail is no longer only about products on shelves
RETAIL IS NO LONGER ONLY ABOUT PRODUCTS ON SHELVES 26 April 2017 | 6
Slide 7: Customers want more, better, seamless and at the right price
Customers’ want more, better, seamless and at the right price THE NAME OF THE GAME IS CONSUMER EMPOWERMENT
Slide 8: On food, consumers need transparency & commitments
ON FOOD, CONSUMERS NEED TRANSPARENCY & COMMITMENTS 63% 67% care about the origin want fewer of the products they purchase preservatives and coloring agents 60% 86% think that want local transparency in companies brands & fresh products is important Source: Havas / Nielsen / PWC / Kantar 01. INTRODUC
Slide 9: These commitments are becoming the new standard of quality
These commitments are becoming the new standard of quality
Slide 10: Trust in quality and commitments brings client loyalty
Trust in quality and commitments brings client loyalty
Slide 11: Consumers need more caring, more relationship
CONSUMERS NEED MORE CARING, MORE RELATIONSHIP The new consumer: Older, more urban, more digitized, more mobile 17% 66% x7 > 65 years old urbanisation rate digital penetration in 2050 vs 8.5% in 2050 between 2000 today (vs. 54% in 2014) and 2016 34% 58% 50% use mobile devices shop online of millenial
Slide 12: Retailers need to tailor the customer experience
RETAILERS NEED TO TAILOR THE CUSTOMER EXPERIENCE CONVENIENT, SEAMLESS ENJOYABLE I want it MY way, at MY time and at MY place In-store & online I want to have a PLEASANT SHOPPING EXPERIENCE 01. INTRODUCTION: THE EMPOWERED CONSUMER 26 April 2017 | 12
Slide 13: The reference in food retail, multiformat & omnichannel
“THE REFERENCE IN FOOD RETAIL, MULTIFORMAT & OMNICHANNEL”
Slide 14: Rolling out Carrefour's Multiformat & Omnichannel model
01. Introduction: The empowered consumer 02. Rolling out Carrefour’s Multiformat & Omnichannel model 02 Pascal Clouzard Executive Director, Anne-Laure Klein Group Strategy Director Hervé Parizot Executive Director, Carrefour Spain E-commerce & Customer Data, Carrefour France 26 April 2017 | 14
Slide 15: Multiformat & Omnichannel
01. Introduction: The empowered consumer 02. Rolling out Carrefour’s Multiformat & Omnichannel model Multiformat & Omnichannel 02 Illustration Digital France Financials 26 April 2017 | 15
Slide 16: Each format has a specific mission
EACH FORMAT HAS A SPECIFIC MISSION 51% 25% 10% 13% 1% Sales Sales Sales Sales Sales Hypermarkets Supermarkets Convenience Cash & Carry E-commerce Everything under one roof Choice close to home Essential daily needs with Wholesale prices for a The broadest assortment at a competitive price with a foc
Slide 17: Hypermarkets: everything under one roof at a competitive price
HYPERMARKETS EVERYTHING UNDER ONE ROOF AT A COMPETITIVE PRICE Carrefour’s historical format HYPERMARKETS New hypermarket concepts tested in all geographies Renewed offer – attractive and powerful Gradually becoming more urban, as cities expand 100,000 SKUs 51€ Average basket (France) 1,328 s
Slide 18: Hypermarkets illustration: video opening Ba De - Taiwan
HYPERMARKETS ILLUSTRATION: VIDEO OPENING BA DE - TAIWAN 02. ROLLING OUT CARREFOUR’S MULTIFORMAT & OMNICHANNEL MODEL 26 April 2017 | 18
Slide 19: Hypermarket photos: Alcobendas, Palma
Alcobendas, Spain Fan Mallorca, Palma, Spain 26 April 2017 | 19
Slide 20: Hypermarket photos: Carugate, Mons, Villiers en Bière
Carugate, Italy Mons, Belgium Villiers en Bière, France Monroe, Argentina 26 April 2017 | 20
Slide 21: Supermarkets: choice close to home with a focus on fresh
SUPERMARKETS CHOICE CLOSE TO HOME WITH A FOCUS ON FRESH Dedicated to food SUPERMARKETS “Clusterizing” to better address local needs 4 clusters: Gourmet, Attraction, Urban, Discount Successful cross-fertilization across countries 20,000 Average SKUs 28€ Average basket (Belgium) 3,227 stores 1
Slide 22: Supermarkets illustration: video Market Gourmet - Italy
SUPERMARKETS ILLUSTRATION: VIDEO MARKET GOURMET - ITALY 02. ROLLING OUT CARREFOUR’S MULTIFORMAT & OMNICHANNEL MODEL 26 April 2017 | 22
Slide 23: Supermarket photos: Saint Marcel, Alcorcon, Sierpinskiego
Saint Marcel, France Supeco Alcorcon, Spain Sierpinskiego, Poland Conde de Penalver, Spain 26 April 2017 | 23
Slide 24: Convenience: essential daily needs with extended shopping hours
CONVENIENCE ESSENTIAL DAILY NEEDS WITH EXTENDED SHOPPING HOURS Format in constant evolution, adapting to changing social and consumption trends CONVENIENCE On top of generalist stores, multiple tests of specialized convenience concepts across countries (organic stores, etc.) Last 2 countries t
Slide 25: Convenience illustration: video Carrefour Easy - China
CONVENIENCE ILLUSTRATION: VIDEO CARREFOUR EASY - CHINA 02. ROLLING OUT CARREFOUR’S MULTIFORMAT & OMNICHANNEL MODEL 26 April 2017 | 25
Slide 26: Convenience photos: Brazil, Poland, France
Express Padre Antonio, Brazil Express Jerozolimskie Varsovie, Poland Carrefour Bio Levallois, France Bon App! Paris, France 26 April 2017 | 26
Slide 27: Convenience photos: Shanghai, Milan, Madrid
Easy Xietu Shanghai, China Express Eat & Shop Milan, Italy Express Hermosilla Madrid, Spain Express Urban Life Milan, Italy 26 April 2017 | 27
Slide 28: Cash & Carry: wholesale prices for a no-frills experience
CASH & CARRY WHOLESALE PRICES FOR A NO-FRILLS EXPERIENCE B2B pure play activities in France (Promocash) and Italy (Docks and Gross Iper) CASH & CARRY Hybrid B2B/B2C: Atacadão is a winning model in Brazil Successful cross-fertilization based on Atacadão in other countries: Maxi in Argentina and
Slide 29: Cash & Carry illustration: video Atacadão
CASH & CARRY ILLUSTRATION: VIDEO ATACADÃO 02. ROLLING OUT CARREFOUR’S MULTIFORMAT & OMNICHANNEL MODEL 26 April 2017 | 29
Slide 30: Cash & Carry photos: Igarassu, Buenos Aires, Sao Paulo, Gerland
Atacadao – Igarassu, Brazil Maxi Buenos Aires, Argentina Atacadao Vila Maria - Sao Paulo, Brazil Promocash Gerland, France 26 April 2017 | 30
Slide 31: Multiformat progressively rolled out in all our countries
MULTIFORMAT PROGRESSIVELY ROLLED OUT IN ALL OUR COUNTRIES FRANCE SPAI N ITALY BELGIUM POLAND ROMANIA ARGENTINA BRAZIL CHINA TAIWAN Hypermarket Supermarket Convenience Cash & Carry eService Other services: Travel, leisure, ticketing, car rental 02. ROLLING OUT CARREFOUR’S MULTIFORMAT & OMNICHANNEL MO
Slide 32: Carrefour's center of gravity is shifting towards multiformat
CARREFOUR’S CENTER OF GRAVITY IS SHIFTING TOWARDS MULTIFORMAT BREAKDOWN OF STORES UNDER BANNERS BY FORMAT GROSS SALES BREAKDOWN – (%) 14,500 Evolution stores 2012 vs. 2019e 11,935 350 +100% stores 9,995 1 450 +6% 42% 305 49% stores >50% 164 1,328 3,700 +24% 1,366 3,227 2,986 58% 51% <50% 9,000 + 64%
Slide 33: E-commerce, an additional format and a complementary service
E-COMMERCE, AN ADDITIONAL FORMAT AND A COMPLEMENTARY SERVICE HYPERMARKETS SUPERMARKETS CASH & CARRY CONVENIENCE E-COMMERCE 02. ROLLING OUT CARREFOUR’S MULTIFORMAT & OMNICHANNEL MODEL 26 April 2017 | 33
Slide 34: Rapid rollout of e-commerce throughout the group
RAPID ROLLOUT OF E-COMMERCE THROUGHOUT THE GROUP FRANCE SPAIN ITALY BELGIUM POLAND ROMANIA ARGENTINA BRAZIL CHINA TAIWAN Home FOOD delivery and/or Click In progress 2017 & Collect Direct offer 2017 2017 () () () NON- FOOD Under Under Marketplace In progress In progre
Slide 35: 2020 e-commerce prospects
2020 E-COMMERCE PROSPECTS GROSS MERCHANDISE VOLUME €4bn Target x3 €1.2bn in 2016 2020 target 02. ROLLING OUT CARREFOUR’S MULTIFORMAT & OMNICHANNEL MODEL 26 April 2017 | 35
Slide 36: Store based omnichannel model: unique opportunity for e-commerce sustainability
STORE BASED OMNICHANNEL MODEL: UNIQUE OPPORTUNITY TO ENSURE E-COMMERCE SUSTAINABILITY OPERATIONAL MODEL CONSUMER CHOICES FOR ORDER MANAGEMENT FOR ORDER COLLECTION Store-picking across formats Home delivery (hypermarkets, supermarkets, convenience) E-Commerce Mixed model: Click & collect in store sto
Slide 37: Carrefour's omnichannel transformation approach
CARREFOUR’S Digital OMNICHANNEL eCommerce marketing TRANSFORMATION APPROACH Technology Big Data IoT Each country adapts the API, agile framework to its market conditions on the basis of key pillars Data, CRM, Omnichannel Hyper- Supply Chain customization HR & cultural transformation
Slide 38: Omnichannel campaign Carrefour Spain
OMNICHANNEL CAMPAIGN CARREFOUR SPAIN 02. ROLLING OUT CARREFOUR’S MULTIFORMAT & OMNICHANNEL MODEL 26 April 2017 | 38
Slide 39: Benefits of omnichannel for Carrefour
BENEFITS OF OMNICHANNEL FOR CARREFOUR Increase in expenditure “Own” the customer and frequency of in our ecosystem existing customers Rejuvenate (Re)Gain customers customer base 26 April 2017 | 39
Slide 40: Omnichannel allows Carrefour to better meet customer needs
Hypermarkets OMNICHANNEL ALLOWS Convenience Convenience & “CLIENT CARREFOUR TO (services) FOR LIFE” E-commerce BETTER MEET LONG-TERM LOYALTY THROUGHOUT CLIENT’S LIFE CUSTOMER THANKS TO MULTIFORMAT NEEDS Hypermarket/ Supermarket/ Drive Click & collect 02. ROLLING OUT CARREFOUR’S MULTIFORMAT & OMNICHA
Slide 41: Carrefour's vast ecosystem favors customer ownership
CARREFOUR’S VAST ECOSYSTEM FAVORS CUSTOMER “OWNERSHIP” Whenever you want 24 hours 7 days Wherever However you want Fresh food Gourmet you want Organic Wine cellar Game & Sports Baby TV · Sound · Photo Textile Technology Appliance ... Whatever you want 02. ROLLING OUT CARREFOUR’S MULTIFORMAT & OMNI
Slide 42: Multiformat: a proven track record in revenue uplift
MULTIFORMAT: A PROVEN TRACK RECORD IN REVENUE UPLIFT MULTIFORMAT CLIENTS SPEND MORE Italy multiformat store network: Hypermarkets Supermarkets 57 Hypermarkets 1.9x 416 Supermarkets 1.0x 1.1x 588 Convenience 13 Cash & Carry 2.5x A multi-format customer is more 1.8x 1.7x loyal to Carrefour 30% of cust
Slide 43: Increase in expenditure and frequency of existing customers
INCREASE IN EXPENDITURE AND FREQUENCY OF EXISTING CUSTOMERS NET SALES PER OMNICHANNEL CAPABILITIES Return/ For $100 Initial exchange Pick-up Returns bought online purchase value loss recoup recoup Net sales Every store visit provides another opportunity for an Pure play omnichannel player $100 -$23
Slide 44: Omnichannel allows us to (re)gain customers
OMNICHANNEL ALLOWS US TO (RE)GAIN CUSTOMERS CLICK & COLLECT CUSTOMERS PICKING THEIR ONLINE ORDER IN A HYPERMARKET Reactivation of lost Increase loyalty Incremental online sales customers 27% 27% 46% were former customers were occasional customers were regular customers 24% went back to being +10% on
Slide 45: Omnichannel rejuvenates customer base
OMNICHANNEL REJUVENATES CUSTOMER BASE AVERAGE AGE OF CARREFOUR CUSTOMERS BY FORMAT (2011-2016) Index 100 = average age of Carrefour Hypermarket customers in 2011 108,9 109,3 107,7 104,5 105,3 102,1 Carrefour Market 102,5 103,3 103,5 Carrefour Hypermarket 101,4 100,0 100,4 88,4 85,4 84,7 84,4 84,4 84
Slide 46: L2 benchmarked Carrefour across countries in 2016
L2 BENCHMARKED CARREFOUR ACROSS 3 COUNTRIES IN 2016 SITE & DIGITAL SOCIAL MOBILE E-COMMERCE MARKETING MEDIA 35% 35% 10% 20% Technology Search Facebook Smartphone experience Search & navigation Advertising Instagram Mobile search Customer service & store Email marketing YouTube Mobile advertising loc
Slide 47: Countries in the top 15 in European big box retail
THE 3 COUNTRIES MADE IT INTO THE TOP 15 IN EUROPEAN BIG BOX RETAIL Carrefour rated as ‘Gifted’ in all 3 countries 147 143 138 138 138 137 136 135 135 134 130 123 120 116 Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 F F F F F F 02. ROLLING OUT CARREFOUR’S MULTIFORMAT & OMNICHANNEL MODEL « F » : food retaile
Slide 48: Spain: full ecosystem rolled out
SPAIN: FULL ECOSYSTEM ROLLED OUT Newly designed and responsive shoppable website Wide choice of delivery options Home delivery Drive Lockers Tests with local start ups to test and improve services Fully integrated mobile application Complete loyalty programme targeting all segments Shop fr
Slide 49: China: food e-commerce rolled out in 12 cities
CHINA: FOOD E-COMMERCE ROLLED OUT IN 12 CITIES Food E-commerce in 12 cities Haerbin 95% of orders through the mobile app (March 2017) Picking from stores. In the Shenyang future, dark stores and crowd Tianjin delivery expected Beijing Shanghai Suzhou Nanjing Chengdu Wuhan Wuxi Click & Collect locker
Slide 50: China: cross-border e-commerce leveraging private label expertise
CHINA: CROSS-BORDER E-COMMERCE LEVERAGING PRIVATE LABEL EXPERTISE Cross-border E-commerce launched in December 2016 Only available from the mobile app 2,000 SKUs in H2 2017 Carrefour brands are showcased (Bio, Les Cosmétiques Paris etc.) Shipped from Taiwan to Mainland China 02. ROLLING OUT CARREFOU
Slide 51: Brazil: re-launch of e-commerce, starting with non-food
BRAZIL: RE-LAUNCH OF E-COMMERCE, STARTING WITH NON-FOOD; FOOD TO BE LAUNCHED SOON Direct offer: c12,500 SKUs, mostly in EPCS and Bazar Marketplace: “Sold by partner, delivery guaranteed by Carrefour”; 6,000 SKUs are online to date; 150,000 SKUs by end 2017 02. ROLLING OUT CARREFOUR’S MULTIFORMAT & O
Slide 52: Poland: omnichannel transformation underway
POLAND: OMNICHANNEL TRANSFORMATION UNDERWAY Non-Food New communication campaign E-commerce relayed by social media launched New campaign launched in 2016 in December 2015 Well received by the general public Successfully relayed on social networks 4,500 SKUs, (1.2m YouTube views at launch) Home
Slide 53: Carmila: integrating digital in shopping malls
CARMILA: INTEGRATING DIGITAL IN SHOPPING MALLS ADJACENT TO OUR HYPERMARKETS Build a global offer of BtoBtoC cross canal services for tenants to reach web & mobile users e-Reservation, couponing, click & collect for food business Develop a local marketing offer, with digital strategies , to generate
Slide 54: Omnichannel boosts innovation in mobile payment
OMNICHANNEL BOOSTS INNOVATION IN MOBILE PAYMENT CARREFOUR IS A KEY PARTNER OF APPLE PAY IN FRANCE CARREFOUR ROMANIA LAUNCHED AND SPAIN ‘CARREFOUR PAY’ Carrefour Pay app launched in November 2016 3 main functionalities: In-store price checking Invoicing Payment through the app, by scanning a QR
Slide 55: France: Digital illustration
01. Introduction: The empowered consumer 02. Rolling out Carrefour’s Multiformat & Omnichannel model Multiformat & Omnichannel 02 France: Digital illustration Financials 26 April 2017 | 55
Slide 56: Our goal: develop the Carrefour reflex
Carrefour is the leading OUR GOAL: physical retailer in France. DEVELOP We are building a major THE CARREFOUR market position in “REFLEX” E-commerce leveraging a unique store network. 02. ROLLING OUT CARREFOUR’S MULTIFORMAT & OMNICHANNEL MODEL 26 April 2017 | Confidential | 56
Slide 57: Numerous and relevant 2016 achievements
NUMEROUS AND RELEVANT 2016 ACHIEVEMENTS JAN. FEB. MARCH APR. MAY JUNE JULY AUG. SEPT. OCT. NOV. DEC. PPC 02. ROLLING OUT CARREFOUR’S MULTIFORMAT & OMNICHANNEL MODEL 26 April 2017 | 57
Slide 58: Pikit
Q PIKIT 26 April 2017 | 58
Slide 59: A coherent and complete ecosystem of websites
A COHERENT AND COMPLETE ECOSYSTEM OF WEBSITES DEDICATED WEBSITES SPECIALIZED AN ONLINE FOOD A NON-FOOD FOR SERVICES WEBSITES CONNECTED OFFER ACCESSIBLE PLATFORM INCLUDING TO THE CARREFOUR TO ALL A MARKETPLACE Carrefour brand ECOSYSTEM All the websites centralized through the carrefour.fr 02. ROLLING
Slide 60: Comprehensive review of our websites
COMPREHENSIVE REVIEW OF OUR WEBSITES Overhaul of the Overhaul of the Drive website Revamp of the homepage, carrefour.fr hub category and product pages of Rue du Commerce 02. ROLLING OUT CARREFOUR’S MULTIFORMAT & OMNICHANNEL MODEL 26 April 2017 | 60
Slide 61: A broad food e-commerce offer
A BROAD FOOD E-COMMERCE OFFER HOME DELIVERY CLICK AND COLLECT 578 drives in France 15,000 online SKUs 4.5M drive orders per year +25% drive sales (2016) 02. ROLLING OUT CARREFOUR’S MULTIFORMAT & OMNICHANNEL MODEL 26 April 2017 | 61
Slide 62: Food online is not 'one size fits all'
at FOOD ONLINE IS MODEL Delivery D+1 or D+2 NOT ‘ONE Extra Large assortment Hypermarket SIZE FITS as a warehouse Supermarket ALL’ as a warehouse 1-hour or same-day delivery Large assortment + Last mile through start-up partners 02. ROLLING OUT CARREFOUR’S MULTIFORMAT & OMNICHANNEL MODEL 26 April 201
Slide 63: Online grocery website screenshots
Carrefour (b> Bonjour, bienvenue sur Carrefour ! » <6 q 6 6 seid 00: Livraison ore Zi 7 shop express fr Faites vos courses en ligne avec Carrefour Toulouse| RECHERCHER ou 2) Me géolocaliser (& _ Livraison a domicile i livrées en Th < _Livraison Express - Vos co 31 - Carrefour Market Toulouse les min
Slide 64: Livraisonexpress.fr
LIVRAISONEXPRESS.FR 02. ROLLING OUT CARREFOUR’S MULTIFORMAT & OMNICHANNEL MODEL 26 April 2017 | 64
Slide 65: Launch of Livraisonexpress.fr home delivery for city centers
NEW OFFERS AND SERVICES: LAUNCH OF LIVRAISONEXPRESS.FR, THE HOME DELIVERY SOLUTION FOR CITY CENTERS A 1H-DELIVERY SERVICE FOR ADDITIONAL LAST-MINUTE SHOPPING, LAUNCHED IN 2016 IN PARIS AND ITS SUBURBS Orders prepared in stores (Market or City) 2,200 SKUs The closest store receives and 30-minute deli
Slide 66: A single non food multispecialist platform
A SINGLE NON FOOD MULTISPECIALIST PLATFORM 750 marketplace merchants A marketplace 3M SKUs Extend non-food offer Leverage our store network 6,000 pick-up points and client touchpoints Specialized expertise in E-commerce additional Carrefour (IT, logistics, CRM, commercial) 400K clients thanks to Cli
Slide 67: Omnichannel approach to leverage non food
Store OMNICHANNEL APPROACH TO STORE TO WEB: WEB TO STORE: LEVERAGE In store tablets Upload store available to the assortment online NON FOOD salesforce CLICK & COLLECT OBJECTIVE: CLICK & COLLECT 100% of the full offer 2 hours available in any Carrefour store Web 02. ROLLING OUT CARREFOUR’S MULTIFORM
Slide 68: Development of our offer on strong potential categories and services
DEVELOPMENT OF OUR OFFER ON STRONG POTENTIAL CATEGORIES AND SERVICES ONLINE FRENCH MARKET CARREFOUR SALES FORECAST (2020) EVOLUTION (2016) OTHER KPIS 340,000 visits/month Wine €400-500m +250% 530 SKUs 600,000 visits/month Organic >€1bn +50% 20,000 SKUs 150,000 visits/month Pet food €600-800m +30% 5,
Slide 69: Our goal: develop the Carrefour reflex
Carrefour is the leading OUR GOAL: physical retailer in France. DEVELOP We are building a major THE CARREFOUR market position in “REFLEX” E-commerce leveraging a unique store network. 02. ROLLING OUT CARREFOUR’S MULTIFORMAT & OMNICHANNEL MODEL 26 April 2017 | Confidential | 69
Slide 70: Financials
01. Introduction: The empowered consumer 02. Rolling out Carrefour’s Multiformat & Omnichannel model Multiformat & Omnichannel 02 France: Digital Illustration Financials 26 April 2017 | 70
Slide 71: Capex evolution reflects Carrefour's multiformat transformation
CAPEX EVOLUTION REFLECTS CARREFOUR’S MULTIFORMAT TRANSFORMATION HISTORICAL CAPEX SPLIT BY FORMAT MEDIUM-TERM TRENDS IN CAPEX (GROUP LEVEL) Remodeling • Expansion in smaller formats 48% • E-commerce roll out 64% >60% Maintenance • Hypermarket remodeling Expansion phase largely behind us 52% 36% <40%
Slide 72: The lower capital intensity of growth will help return on capital
THE LOWER CAPITAL INTENSITY OF GROWTH WILL HELP RETURN ON CAPITAL HYPERMARKETS SUPERMARKETS CONVENIENCE CASH & CARRY E-COMMERCE Number of stores 1,328 3,227 7,075 305 n.a % food in sales 70% 85% 95% c100% 55% Capex (by unit) €€€ €€ € € € Expansion outlook = Expansion capex per sqm ++
Slide 73: Q&A session
« L’EXPERIENCE OMNICANALE CARREFOUR » Q&A SESSION 26 April 2017 | 73
Slide 74: Agenda
9:00 AM – 10:30 AM • Opening remarks • Introduction • Multiformat & omnichannel model • Q&A session 10:30 AM – 10:45 AM • Break 10:45 PM – 12:20 AM Agenda • CRM & Data • Supply chain • Q&A session • Closing remarks 12:20 AM – 2:00 PM • Lunch, with demos of products, solutions and concepts 2:00 PM –
Slide 75: Using CRM & data to engage with customers
01. Introduction: The empowered consumer 02. Rolling out Carrefour’s Multiformat & Omnichannel model 03 03. Using CRM & data to engage with customers Clément Marty Enrique Garcia Lopez Digital Marketing, Loyalty Digital Director, Big Data and Innovation Director, and Data Science, Carrefour Spain Ca
Slide 76: Key messages
KEY MESSAGES Carrefour is already a data-centric organization gathering relevant customer and operational data “Small data” is in play to enrich customer value-proposition and convey adequate messages New technical capabilities well underway to achieve new level of insights and exploit data commerci
Slide 77: Data is a 3-stage rocket
DATA IS A 3-STAGE ROCKET Big Data and data science Leverage technology to grow revenue Leverage “small data” Gather relevant data 03. USING CRM & DATA TO ENGAGE WITH CUSTOMERS 26 April 2017 | 77
Slide 78: Carrefour is a data-deep company
CARREFOUR IS A DATA-DEEP COMPANY CARREFOUR CARREFOUR SOCIAL LOYALTY CARD CREDIT CARD PAYMENT NETWORKS WEBSITES MOBILE APPS 55 million 6.5 million 13m 14.4m 1.3m 8.2m households holders daily transactions fans / followers daily visitors downloads 03. USING CRM & DATA TO ENGAGE WITH CUSTOMERS 26 April
Slide 79: We gather relevant data by providing customers with tangible benefits
WE GATHER RELEVANT DATA BY PROVIDING CUSTOMERS WITH TANGIBLE BENEFITS Carrefour Partners 8% 6% “x”% 5% 5 5% % 4% 1% 1% Exclusive 1% of 8% of gas 1% of promotions 4% of gas Up to 5% Up to 5% 6% in food spend spend purchase spend in on on the Grupo Vips with PASS CEPSA electricity Orange bill restaura
Slide 80: Small data to drive frequency and basket
“SMALL DATA” TO DRIVE FREQUENCY AND BASKET Monthly basket (€) Increase average ticket 500 Segmentation Coupon 450 Clients with average ticket below €30 €3 x €40 400 350 Clients with average ticket between €30 & €50 €4 x €60 300 Clients with average ticket between €50 & €80 €5 x €90 250 Clients with
Slide 81: Small data to develop customer insights and send segmented messages
“SMALL DATA” TO DEVELOP CUSTOMER INSIGHTS AND SEND SEGMENTED MESSAGES ABANDONISTAS SEGMENTED EMAILS PLAN VERANO 03. USING CRM & DATA TO ENGAGE WITH CUSTOMERS 26 April 2017 | 81
Slide 82: Building digital communication channels with customers is key
BUILDING Building a digital communication channel DIGITAL requires relevance and trust The App is meant to become the privileged link COMMUNICATION between Carrefour and its loyal customers CHANNELS WITH In order to drive adoption and repeat use, it has been designed as a bundle of customer services
Slide 83: Customer data strategy enables revenue growth
CUSTOMER DATA STRATEGY ENABLES REVENUE GROWTH Type of Carrefour customers Carrefour customers Not Carrefour Customer Loyalty cardholder Not cardholders customers PASS cardholder Strategy Increase share of Enroll in loyalty Bring to Carrefour wallet program Type of Data Known Client data Anonymous da
Slide 84: Our big data stack is the foundation for extracting value
OUR “BIG DATA STACK” IS THE FOUNDATION FOR EXTRACTING VALUE FROM DATA DATA AS A SERVICE “SMART” DATA BIG/FAST DATA 03. USING CRM & DATA TO ENGAGE WITH CUSTOMERS 26 April 2017 | 84
Slide 85: Fast data enables delighting customers in real time
FAST DATA ENABLES DELIGHTING CUSTOMERS IN “REAL TIME” Personalized coupon from cashier to App in ~1 sec. 03. USING CRM & DATA TO ENGAGE WITH CUSTOMERS 26 April 2017 | 85
Slide 86: Our data enables various applications of data science
OUR DATA IS VERY “DEEP” AND ENABLES VARIOUS APPLICATIONS OF DATA SCIENCE EXAMPLES OF APPLICATIONS BEING DEVELOPED CUSTOMER FOCUS OPERATIONAL FOCUS Hypersegmentation of customers Automatic Anomaly detection (Granular coupons, recommendations) at POS “Churn” risk detection In-store stock-out d
Slide 87: Our customer data reveals new levels of insights
OUR CUSTOMER DATA REVEALS NEW LEVELS OF INSIGHTS More granular Predictive Enriched 03. USING CRM & DATA TO ENGAGE WITH CUSTOMERS 26 April 2017 | 87
Slide 88: Key messages
KEY MESSAGES Carrefour is already a data-centric organization gathering relevant customer and operational data “Small data” is in play to enrich customer value-proposition and convey adequate messages New technical capabilities well underway to achieve new level of insights and exploit data commerci
Slide 89: Deploying an adapted supply chain
01. Introduction: The empowered consumer 02. Rolling out Carrefour’s Multiformat & Omnichannel model 04 03. Using CRM & data to engage with customers 04. Deploying an adapted supply chain Florence Batchourine Supply Chain Director, Carrefour France 26 April 2017 | 89
Slide 90: Carrefour's supply chain in figures
CARREFOUR’S SUPPLY CHAIN IN FIGURES 142 4 million 10 warehouses square meters countries worldwide 2.7 billion c21,600 12,000 boxes transported in 2016 m2 dedicated employees, internal c stores served and external 04. DEPLOYING AN ADAPTED SUPPLY CHAIN 26 April 2017 | 90
Slide 91: Our supply chain is evolving to support Carrefour's transformation
OUR SUPPLY CHAIN IS EVOLVING TO SUPPORT CARREFOUR’S TRANSFORMATION 2 MAIN STRATEGIC GOALS TO SUPPORT GROUP’S TRANSFORMATION Support Industrialize multiformat omnichannel deployment processes Leverage transformation to improve operating efficiency 04. DEPLOYING AN ADAPTED SUPPLY CHAIN 26 April 2017 |
Slide 92: Our supply chain is evolving to support Carrefour's transformation
OUR SUPPLY CHAIN IS EVOLVING TO SUPPORT CARREFOUR’S TRANSFORMATION 2 MAIN STRATEGIC GOALS TO SUPPORT GROUP’S TRANSFORMATION Support Industrialize multiformat omnichannel deployment processes Leverage transformation to improve operating efficiency 04. DEPLOYING AN ADAPTED SUPPLY CHAIN 26 April 2017 |
Slide 93: France: a more efficient multiformat supply chain thanks to Caravelle
FRANCE: A MORE EFFICIENT MULTIFORMAT SUPPLY CHAIN THANKS TO CARAVELLE in 2012 in 2018 Reduced number of warehouses in France 67 -18% 55 2018 CARAVELLE TARGETS* Reinforced network of multiformat warehouses 13 x3 34 Number of Km Number of SKUs -20% +15% +50% Cost of package -5% Number of delivered sto
Slide 94: France: Caravelle is delivering its first benefits
FRANCE: CARAVELLE IS DELIVERING ITS FIRST BENEFITS EXAMPLE: SOUTHWEST FRANCE ENHANCED OPERATIONAL BEFORE NOW EFFICIENCY Number of Km -20% Environmental impact -23% Bordeaux Bordeaux (hypers) multiformat Product availability +2% BENEFITS FOR OUR CLIENTS Number of SKUs available +19% Toulouse Toulouse
Slide 95: France: Caravelle enhances operating efficiency
FRANCE: CARAVELLE ENHANCES OPERATING EFFICIENCY 2013 / 2014 2015 2016 2017 2018 €350m 30% 10% 25% 10% 25% savings between end-2012 and end-2018 65% 35% of savings delivered as of end-2016 of savings to be delivered in 2017 and 2018 04. DEPLOYING AN ADAPTED SUPPLY CHAIN 26 April 2017 | 95
Slide 96: Cargo, applying our real estate know-how to logistics
CARGO, APPLYING OUR REAL ESTATE KNOW-HOW TO LOGISTICS THE REAL ESTATE COMPONENT BENEFITS FOR CARREFOUR OF THE CARAVELLE PROJECT • JV created in H1 2016, 32%-held by Carrefour • Regain control of distribution centers, which along with co-investors are key real estate assets • Comprises around one-thi
Slide 97: France: Carrefour innovates to build a more sustainable supply chain
FRANCE: CARREFOUR INNOVATES TO BUILD A MORE SUSTAINABLE SUPPLY CHAIN INNOVATION AND IMPLEMENTATION IMPROVED ENVIRONMENTAL OF NEW TECHNOLOGIES PERFORMANCE First player in France to implement Rollout of Bio Methane Trucks a new CO2 transcritical Reduce C02 emissions by 75%, refrigeration facility in
Slide 98: China: integration of supply chain supporting multiformat roll-out (1/2)
CHINA: INTEGRATION OF SUPPLY CHAIN SUPPORTING MULTIFORMAT ROLL-OUT (1/2) IN 2014, CHINA DID NOT HAVE INTEGRATED LOGISTICS 2 STRATEGIC OBJECTIVES WERE PURSUED: DEPLOY IMPROVE MULTIFORMAT CUSTOMER SERVICE Roll-out convenience More flexibility (adapt to client demands) Launch E-commerce Increased produ
Slide 99: China: integration of supply chain supporting multiformat roll-out (2/2)
CHINA: INTEGRATION OF SUPPLY CHAIN SUPPORTING MULTIFORMAT ROLL-OUT (2/2) INTEGRATION AND OPTIMIZATION OF LOGISTICS % of goods supplied by our BEIJING/TIANJIN DC distribution centers: 40 stores 2017 target: 80% December 2015 Increase in assortment: +20% in small- and mid-sized cities SHENYANG DC
Slide 100: Our supply chain is evolving to support Carrefour's transformation
OUR SUPPLY CHAIN IS EVOLVING TO SUPPORT CARREFOUR’S TRANSFORMATION 2 MAIN STRATEGIC GOALS TO SUPPORT GROUP’S TRANSFORMATION Support Industrialize multiformat omnichannel deployment processes Leverage transformation to improve operating efficiency 04. DEPLOYING AN ADAPTED SUPPLY CHAIN 26 April 2017 |
Slide 101: Carrefour tests and operates multiple fulfillment models across markets
CARREFOUR TESTS AND OPERATES MULTIPLE FULFILLMENT MODELS ACROSS MARKETS Future Partly-automated models? # OF DAILY warehouse ORDERS Dark store: (conveyers) dedicated warehouse, Mixed model: manual picking dedicated storage In-store picking space adjacent to geographically the store In-store concentr
Slide 102: Video: non food supply chain in Spain
VIDEO: NON FOOD SUPPLY CHAIN IN SPAIN 26 April 2017 | 102
Slide 103: PPC: innovative logistics solution for densely-populated urban areas
“PPC”: INNOVATIVE LOGISTICS SOLUTION FOR DENSELY-POPULATED URBAN AREAS Partly automated warehouse to prepare individual Drive orders HOW DOES IT WORK? BENEFITS NEXT STEPS Warehouse prepares the FMCG and Significantly reduce product shortage Automate/Mechanise part of the Fresh part of the indi
Slide 104: Conclusion
01. Introduction: The empowered consumer 02. Rolling out Carrefour’s Multiformat & Omnichannel model 05 03. Using CRM & data to engage with customers 04. Deploying an adapted supply chain 05. Conclusion 26 April 2017 | 104
Slide 105: Q&A session
« L’EXPERIENCE OMNICANALE CARREFOUR » Q&A SESSION 26 April 2017 | 105
Slide 106: Lunch – discover our innovations
LUNCH – DISCOVER OUR INNOVATIONS Market Pay Carmila Premium private labels and Carrefour quality lines 26 April 2017 | 106
Slide 107: Store tour
STORE TOUR Departure 3 formats / concepts 3 Groups meeting point : GROUP 1 Entrance of • Departure at 2:00pm • Arrival at Gare du Nord at 5:45pm Hôtel d’Evreux GROUP 2 You can find your • Departure at 2:10pm • Arrival at Gare du Nord at 6:20pm Group number on your name tag GROUP 3 • Departure at 2:0
Slide 108: Thank you for your attention
<6 Thank you for your attention