Carrefour: Financial Ratios and Inventory Holding Period
6N215 Corporate Financial Reporting
Professor Doug DeJong
Carrefour Group Assignment
Introduction
Company Overview
Carrefour was founded in 1959 in France. Marketing itself as a one-stop-shop providing a wide range of products at a low cost, it is now the second largest retailer in the world and the largest in Europe. In 2012, the company continued expanding their international footprint by adding an additional 283 retail points in France, Europe and Latin America. As of December 31, 2012, the Group was operating 9,994 retail outlets in 33 countries conducting all transactions in Euros.
According to the Carrefour’s 2011 Annual Activity Report, the Group now features four major retail formats: Hypermarkets, Supermarkets, Convenience Stores and Cash & Carry Stores. Formerly, Carrefour also carried hard discount format stores but this was discontinued in 2010, on top of which Dia sub-group was also eliminated in 2011. Carrefour continues to expand their multi-channel retail forums (Carrefour Drive & e-commence) in certain strategic locations. The following highlights the breakdown of store formats used:
Above retail formats offer different and diversified product mix combining choices, quality and low prices to end-consumers – with product mainly categorized into: Daily Products, Fresh Products and Non-food Products. By end of 2011, nearly 50% of Carrefour retail outlets were located in France while the other 50% were operating in Europe, Latin America and Asia. Major markets for Carrefour in terms of strategising are France and Europe (Spain, Italy and Belgium). Despite attempts to lead in Asian markets, Carrefour is facing government and tax regulations. Globally speaking, 53% of stores were under the Convenience Store format in 2011.
Performance Overview (2009-2011)
In 2009, Carrefour introduced a new CEO and CFO while launching the ‘transformation plan’ in an attempt to improve business, brand image, business strategy etc. reducing
Professor Doug DeJong
Carrefour Group Assignment
Introduction
Company Overview
Carrefour was founded in 1959 in France. Marketing itself as a one-stop-shop providing a wide range of products at a low cost, it is now the second largest retailer in the world and the largest in Europe. In 2012, the company continued expanding their international footprint by adding an additional 283 retail points in France, Europe and Latin America. As of December 31, 2012, the Group was operating 9,994 retail outlets in 33 countries conducting all transactions in Euros.
According to the Carrefour’s 2011 Annual Activity Report, the Group now features four major retail formats: Hypermarkets, Supermarkets, Convenience Stores and Cash & Carry Stores. Formerly, Carrefour also carried hard discount format stores but this was discontinued in 2010, on top of which Dia sub-group was also eliminated in 2011. Carrefour continues to expand their multi-channel retail forums (Carrefour Drive & e-commence) in certain strategic locations. The following highlights the breakdown of store formats used:
Above retail formats offer different and diversified product mix combining choices, quality and low prices to end-consumers – with product mainly categorized into: Daily Products, Fresh Products and Non-food Products. By end of 2011, nearly 50% of Carrefour retail outlets were located in France while the other 50% were operating in Europe, Latin America and Asia. Major markets for Carrefour in terms of strategising are France and Europe (Spain, Italy and Belgium). Despite attempts to lead in Asian markets, Carrefour is facing government and tax regulations. Globally speaking, 53% of stores were under the Convenience Store format in 2011.
Performance Overview (2009-2011)
In 2009, Carrefour introduced a new CEO and CFO while launching the ‘transformation plan’ in an attempt to improve business, brand image, business strategy etc. reducing