Carrefour Sa · EURONEXT:CA
Carrefour Sa — Investor Day (2007)
27 slides from Carrefour Sa's investor day presentation, 2007
Slide 1: Non-food
Non-food a 94 groupecarrefour
Slide 2: Why a new non-food model?
Why a new non-food model? We have been rethinking the hypermarket concept, replacing «everything under one roof» with a «multi specialist» strategy We are capitalizing on an important, but under exploited, competitive advantage - the fact that we have a stronger presence in non-food than our competi
Slide 3: Our Challenges
Our Challenges 1 2 Optimise our « Seducing » selling area the customer Add more shelf space Increase the number to offer larger of reasons for shopping assortments the store 93
Slide 4: Our Challenges
Our Challenges 1 2 Optimise our « Seducing » selling area the customer Add more shelf space Increase the number to offer larger of reasons for shopping assortments the store 94
Slide 5: Optimising our selling area
1 Optimising our selling area Optimise floor space according to store size: Smaller hypermarkets (3000m² - 6000m²): make arbitrage in favour of the most profitable categories Medium-sized hypermarkets (6000m² - 13000m²): drive basket size up by freeing up shelf space and reallocating m² to priority
Slide 6: Optimising our selling area
1 Optimising our selling area Optimise floor space to gain new shelf space Depth of gondolas adapted to products and sales Width of aisles according to customer flow Re-dimensioning of main traffic routes EXAMPLE: MEDIUM + 88 fixtures SIZED STORE (Chartres) +6% EXAMPLE: LARGE +335 fixtures SIZED STO
Slide 7: Making choices between categories
1 Optimising our selling area Making choices between categories Focus on: Growth categories Returns by linear m2 Attractiveness Understanding the customer Optimising Developing Compacting Categories Destination Service categories which drive traffic categories REPLACEMENT PURCHASES FREQUENT PURCHASE
Slide 8: Compacting: reducing shelf space and number of SKUs
1 Optimising our selling area COMPACTING Infrequent purchases / weak potential: Reducing shelf space and the number of skus SERVICE In/out operations CATEGORIES M² reallocated to categories with strong growth potential EXAMPLE: MEDIUM SIZED STORE (Chartres) Compacting DIY (excluding consumables) Lin
Slide 9: Optimising categories which drive traffic
1 Optimising our selling area OPTIMISING Frequent purchases / strong potential: CATEGORIES Offer represents industry benchmark WHICH DRIVE Price leader TRAFFIC Strategic positioning according to customer flow EXAMPLE: LARGE STORE (Antibes) Disposable dishes/candles Positioning of Sales: +54% above t
Slide 10: Developing destination categories
1 Optimising our selling area DEVELOPING Reallocating space occupied by bulky products Increasing assortments with step up in range DESTINATION CATEGORIES Offering linked products and services EXAMPLE: ALL STORES Display screens in the store First Half results 2007 178 SKUs About €10 m for 13 000 it
Slide 11: Developing destination categories: ranges
2 Optimising our selling area DEVELOPING Reinforcing market share and growing profitability in our best categories DESTINATION Development of ranges CATEGORIES Emphasis on permanent items Reduction of promotions EXAMPLE: ALL STORES kitchenware Average growth in market share in the overall category b
Slide 12: Our Challenges
Our Challenges 1 2 Optimise our « Seducing » selling area the customer Add more shelf space Increase the number to offer larger of reasons for shopping assortments the store 102
Slide 13: Recognisable destinations, wider range, enticing presentation
2 « Seducing » the customer Recognisable destinations A wider, more attractive, range More enticing presentation 103
Slide 14: Seducing the customer
2 « Seducing » the customer 104
Slide 15: Seducing the customer
2 « Seducing » the customer 105
Slide 16: Seducing the customer
2 « Seducing » the customer 106
Slide 17: Seducing the customer
2 « Seducing » the customer 107
Slide 18: Seducing the customer
2 « Seducing » the customer 108
Slide 19: Example: Consumer Electronics
2 « Seducing » the customer Example: Consumer Electronics Carrefour 2nd biggest seller of consumer electronics in France behind Darty 9% market share (total market) Number 1 among hypermarkets with more than 35% market share Refocusing of categories on more attractive and more profitable assortments
Slide 20: Example: Consumer Electronics
2 « Seducing » the customer Example: Consumer Electronics Increase in average selling price by introducing higher-end and more profitable lines Development of small electrical items in fast growing markets Innovative cutting edge products that set us apart 110
Slide 21: Bringing innovations quickly to market
2 « Seducing » the customer Bringing innovations quickly to market Increasing range of accessories (specialist brands) Telephone accessories exclusive to Carrefour 111
Slide 22: Full range of assortment
2 « Seducing » the customer Full range of assortment available in all stores Home delivery Test 1st December 2007 Roll out expected in April 2008 112
Slide 23: End-aisle displays influence customer flow
2 « Seducing » the customer End-aisle displays influence customer flow in the store Development of impulse purchases Easier to spot permanent items 113
Slide 24: End-aisle displays: highlighting permanent lines
2 « Seducing » the customer End-aisle displays: Highlighting permanent lines and reducing promotions Before… After… Catalogue products: + complementary purchases Catalogue products : + associated consumables Limited timeliness Development of attractiveness Weak profitability Increase in average bask
Slide 25: Results to date
Results to date Results have been encouraging: Growth in the three main sectors (apparel, general merchandise and Consumer Electronics) LFL sales of converted stores between 3 and 5% higher than the chain average depending on the category Increase in the commercial margin of 1 percentage point Carre
Slide 26: Roll out
Roll out 2006: 3 test stores (Chartres / Puget / Nantes Beaulieu) 2007: 25/30 stores with non-food concept by year-end 2008: 100 stores converted 2009: All stores converted 116
Slide 27: Conclusion
Conclusion We are building a non-food offer which will be the best in the hypermarket sector We are now comparing ourselves with the specialists not just other hypermarket players Suppliers want to team up with us We have added more staff on the shop floor 117