Carrefour Presentation
Today our group will be talking about Carrefour S.A which is a retailer located mainly in Europe. Carrefour is a hypermarket. How many of you guys know what a hypermarket is?
A hypermarket is basically a superstore that offers a wide assortment of food as well as non-food products at economic prices, but they are much larger in size than traditional supermarkets. The size of hypermarkets can range from 2400 to 3000 square meters.
Carrefour’s core strengths have been in its low prices, wide product offering, and in the convenience of finding all of its products in one place. However, the case deals specifically with how the company is facing a lot of problems in terms of having an out-dated business model, as shopping on the internet has become more prevalent. The case also talks about how Carrefour has lost their market share in the food segment since compared to other retailers, the fact that they are a hypermarket means that their prices are a bit higher.
During the 1990s, Carrefour had a created a great reputation for its broad assortment and low prices, and had outstanding share performance. During the first half of the 2000s, however, Carrefour’s share price had fallen from about 80 euros to 40, despite having earned returns on equity in excess of 17%. This case follows an analyst Chrystelle Moreau of Leblanc Investissements, which is a small Paris-based investment firm as she tries to make sense of Carrefour’s decline in performance during the last few years, their current financial position and what drove Carrefour to cut their dividends in 2011.
Company Background
Carrefour is a French-based food and non-food retailer that was established in 1959 by the Fournier and Defforey families. They opened their first hypermarket in France in 1962. The hypermarket concept is what made Carrefour famous.
In 1979, Carrefour opened its first hard discount stores under the “Ed” banner in France and under the “Dia” banner in Spain. The hard
A hypermarket is basically a superstore that offers a wide assortment of food as well as non-food products at economic prices, but they are much larger in size than traditional supermarkets. The size of hypermarkets can range from 2400 to 3000 square meters.
Carrefour’s core strengths have been in its low prices, wide product offering, and in the convenience of finding all of its products in one place. However, the case deals specifically with how the company is facing a lot of problems in terms of having an out-dated business model, as shopping on the internet has become more prevalent. The case also talks about how Carrefour has lost their market share in the food segment since compared to other retailers, the fact that they are a hypermarket means that their prices are a bit higher.
During the 1990s, Carrefour had a created a great reputation for its broad assortment and low prices, and had outstanding share performance. During the first half of the 2000s, however, Carrefour’s share price had fallen from about 80 euros to 40, despite having earned returns on equity in excess of 17%. This case follows an analyst Chrystelle Moreau of Leblanc Investissements, which is a small Paris-based investment firm as she tries to make sense of Carrefour’s decline in performance during the last few years, their current financial position and what drove Carrefour to cut their dividends in 2011.
Company Background
Carrefour is a French-based food and non-food retailer that was established in 1959 by the Fournier and Defforey families. They opened their first hypermarket in France in 1962. The hypermarket concept is what made Carrefour famous.
In 1979, Carrefour opened its first hard discount stores under the “Ed” banner in France and under the “Dia” banner in Spain. The hard