Carrefour Sa · EURONEXT:CA
Carrefour Sa — Investor Day (2007)
37 slides from Carrefour Sa's investor day presentation, 2007
Slide 1: Brand convergence in France
Brand convergence in France
Slide 2: Brand convergence is underway within the group
Brand convergence is underway within the group 140
Slide 3: Brand convergence is underway within the group (1/2)
Brand convergence is underway in within the group (1/2) 78 Carrefour LFL: +30% Impact Impact Express EBIT back to positive 208 Champion* LFL: +15%-20% Spain 14 mini-hypers Impact Impact transformed EBIT back to positive into LFL: stable 57 DIA Impact Impact EBIT back to positive 60 Champion LFL: +10
Slide 4: Brand convergence is underway within the group (2/2)
Brand convergence is underway in within the group (2/2) All Norte stores transformed into LFL: +60% Argentina Roll Roll out out Carrefour Express Completed by end 2008 or mini-hypers Globi and Champion LFL: +20% Poland transformed into Roll Roll out out Carrefour Express Completed by end 2008 Gima a
Slide 5: Brand convergence in France
Brand convergence in France 143
Slide 6: The convergence of brands across the group has been a success
The context The convergence of brands across the group has been a success Significant trends in the French market Growing role of own label Importance of customer databases Opening up of TV advertising to retailers 144
Slide 7: However there are specific elements in France
However there are specific elements in France A large portfolio of stores Well known brands Large scale Franchisees play an important role 145
Slide 8: Building a strong Carrefour brand
Building a strong Carrefour brand Carrefour’s strong brand image Ranked 8th French brand and 1st retail brand in France (Brand Finance 2007) Ranked number one by customers for choice, quality, freshness and modern image (Référenseigne 2007) Consumers welcome the changes No hostility to the change in
Slide 9: Opportunities for the big supermarkets and small hypermarkets
Opportunities for the big supermarkets and small hypermarkets Smaller households and changing demographics create opportunities Sales 3 > 6 500 m2 growth (%) 2,5 2 500-6 500 m2 2,5 2,3 1 200-2 500 m2 2,0 1,9 < 1 200 m2 2 1,4 1,4 1,5 1,3 1 0,5 0,5 0 Moyenne 2001-2006 Moyenne 1994-2006 Source: Nielsen
Slide 10: Launch of two tests to evaluate potential of brand convergence
Launch of two tests to evaluate potential of brand convergence Small hypermarkets (3 000-6 000 m²) Transfer of 7 Champion hypermarkets to the Carrefour brand in June 2007 Supermarkets (1 800 m²) Transfer of 6 Champion supermarkets to the Carrefour Market brand in October 2007 148
Slide 11: Small hypermarkets (3 000-6 000 m²)
Small hypermarkets (3 000-6 000 m²) Transfer of 7 Champion hypermarkets to the Carrefour brand 149
Slide 12: Location of the stores in France
Location of the 7 stores in France Lille Vernon Saint Lo 3 100 m² 3 800 m² Rouen Caen Paris Goussainville Flers Rennes 3 700 m² 3 500 m² Orléans Dijon Besançon Romorantin Beaune 3 500 m² 3 600 m² Lyon Lesparre 3 600 m² Bordeaux 150
Slide 13: The customer focus is identical to Carrefour's
The customer focus is identical to Carrefour’s 1. Carrefour loyalty card 151
Slide 14: The customer focus is identical to Carrefour's
The customer focus is identical to Carrefour’s 1. Carrefour loyalty card 2. Clear savings for the customer 152
Slide 15: The customer focus is identical to Carrefour's
The customer focus is identical to Carrefour’s 1. Carrefour loyalty card 2. Clear savings for the customer 3. Introducing Carrefour own label 153
Slide 16: The customer focus is identical to Carrefour's
The customer focus is identical to Carrefour’s 1. Carrefour loyalty card Hypermarkets: sustained promotional 2. Clear savings for the customer rhythm 3. Introducing Carrefour own label 4. Powerful and effective promotions … 154
Slide 17: The customer focus is identical to Carrefour's
The customer focus is identical to Carrefour’s 1. Carrefour loyalty card +2 200 SKUs in dry grocery 2. Clear savings for the customer +600 own label SKUs 3. Introducing Carrefour own label 4. Powerful and effective promotions 5. Broadening the food offer 155
Slide 18: The customer focus is identical to Carrefour's
The customer focus is identical to Carrefour’s 1. Carrefour loyalty card 2. Clear savings for the customer 3. Introducing Carrefour own label 4. Powerful and effective promotions 5. Broadening the food offer 6. Modernising the non-food offer 156
Slide 19: The customer focus is identical to Carrefour's
The customer focus is identical to Carrefour’s 1. Carrefour loyalty card 2. Clear savings for the customer 3. Introducing Carrefour own label 4. Powerful and effective promotions 5. Broadening the food offer 6. Modernising the non-food offer 7. Carrefour commitments and services 157
Slide 20: The Carrefour commercial model and organisational know-how of the supermarkets
The Carrefour commercial model and the organisational know-how of the supermarkets Key points of the model Benefits Investing in margin to put into Attractiveness of the model to place the Carrefour commercial customers model Growth in sales Centralisation of tasks: working Control of distribution a
Slide 21: Strong customer welcome for the brand change
Strong customer welcome for the brand change Significant number of new customers Simultaneous rise in customer traffic and basket size Strong customer satisfaction mainly based on Availability of Carrefour products Richer and more modern assortments Access to a loyalty programme which is seen as mor
Slide 22: We are satisfied with the first results
We are satisfied with the first results Improvement in customer perception Market share gains locally 10 to 15 % sales growth driven mainly by: 20 to 40% sales growth in non-food 30 to 40% growth in own label 160
Slide 23: Next steps
Next steps Appointment of an operational head reporting to the Executive Director of French hypermarkets Adjusting certain elements of the economic and commercial model before rolling out Decision on extent of roll out to be taken in early 2008 161
Slide 24: Supermarkets (1 800 m²)
Supermarkets (1 800 m²) Transfer of 6 Champion supermarkets to the Carrefour Market brand 162
Slide 25: Location of the stores in Brittany
Location of the 6 stores in Brittany Plouguernével Gévézé 1 900 m² 1 800 m² Betton 1 600 m² Saint-Brieuc Brest Quimper Rennes Rennes B.-l'Evêque,1 700 m² Hennebont 2 000 m² Lorient Vannes Vannes Tohannic 2 500 m² 163
Slide 26: Our customer commitment captures the essence of the Carrefour brand
Our customer commitment captures the essence of the Carrefour brand 1. Carrefour loyalty card 164
Slide 27: Our customer commitment captures the essence of the Carrefour brand
Our customer commitment captures the essence of the Carrefour brand 1. Carrefour loyalty card 2. Clear savings for the customer 165
Slide 28: Our customer commitment captures the essence of the Carrefour brand
Our customer commitment captures the essence of the Carrefour brand 1. Carrefour loyalty card 2. Clear savings for the customer 3. Introducing Carrefour own label 166
Slide 29: Our customer commitment captures the essence of the Carrefour brand
Our customer commitment captures the essence of the Carrefour brand 1. Carrefour loyalty card Health & Beauty 2. Clear savings for the customer 3. Introducing Carrefour own label 4. Broadening the product offer Baby/ Kid Organic 167
Slide 30: Our customer commitment captures the essence of the Carrefour brand
Our customer commitment captures the essence of the Carrefour brand 1. Carrefour loyalty card A more modern non food 2. Clear savings for the customer 3. Introducing Carrefour own label 4. Broadening the product offer 168
Slide 31: Our customer commitment captures the essence of the Carrefour brand
Our customer commitment captures the essence of the Carrefour brand 1. Carrefour loyalty card 2. Clear savings for the customer 3. Introducing Carrefour own label 4. Broadening the product offer 5. Carrefour Market’s nine commitments 169
Slide 32: Our customer commitment captures the essence of the Carrefour brand
Our customer commitment captures the essence of the Carrefour brand 1. Carrefour loyalty card 2. Clear savings for the customer 3. Introducing Carrefour own label 4. Broadening the product offer 5. Carrefour Market’s nine commitments 6. Cross promotions with the hypermarkets 170
Slide 33: Our customer commitment captures the essence of the Carrefour brand
Our customer commitment captures the essence of the Carrefour brand 1. Carrefour loyalty card 2. Clear savings for the customer 3. Introducing Carrefour own label 4. Broadening the product offer 5. Carrefour Market’s nine commitments 6. Cross promotions with the hypermarkets 7. Modern signage 171
Slide 34: The supermarket economic model remains in place
The supermarket economic model remains in place Maintaining the fundamentals of the supermarket economic model Existing teams and organisation in the stores Centralised tasks in common with rest of supermarket chain Information systems and supply chain Investment in margin focused on the basics of t
Slide 35: We will judge the success of the tests on three criteria
We will judge the success of the tests on three criteria Improvement in customer perception Increase in sales and market share gains Improvement in profitability 173
Slide 36: Next Steps
Next Steps The tests are being piloted by the supermarket teams The whole of the Champion portfolio could be re- branded Carrefour Market banner if the tests are satisfactory The decision on a potential roll out will be taken in the first months of 2008 174
Slide 37: In conclusion: brand convergence in France
In conclusion: brand convergence in France We believe in a multi format strategy which allows us to respond better to our customers’ daily needs and wants We can best serve our customers by relying on a single brand delivered through a multi format and multi channel strategy Our efforts are focused