Carrefour Expands Abroad Essay Example

and also economy at that time was in somewhat recession. In Europe Careefour face intense competition from their rivals aldi and others who offered discounts to their customers which features private label brands at lower price.2.

When Lars Olofsson became chief executive of Carrefour, one industry observer described the position as “one of the most difficult assignments in the industry” why do you think the job is so challenging? When Lars Olofsson became the chief executive of Carrefour he got the job to bring back the Careefour and reposition it when it was on its bottom line. Careefour is the words second largest retailer after Wal-Mart with around 15,000 stores around the globe, since its invention of hypermarket 5 decades ago the needs of the customers and market had changed while Carrefour’s strategy of hypermarkets is somewhat same as traditional systems. Lars spent millions of euros in his first year to bring back Careefour back to its position. He said that company had lost its focus from European market.

Careefour hypermarket offers wide range of products carrying from foods to clothes to bikes and many others under one roof. But in 15 years specialty stores came in which threatened the company, as customers prefer to buy some items from specialized stores in the market rather than from hypermarkets. Also challenged varied like it is difficult to compete with teen oriented fast- fashion in cloths and foods and other products offered by specialty retailers like Zara and H&M. also many European consumers are shifting to durable products such as electronics and home appliances. These were the several challenges faced by Lars while he accepted the job as

CEO of the company Careefour in 2009, which makes the job challenging for him.

3. Suppose you are a consultant to the chief executive of Carrefour china. What recommendations would make to encourage Chinese shopper to spend more money? The estimated of retailer market in china was assumed for $600 billion in 2010. Careefour has acquired local partners in order to build a supplier network capable of serving more than 100 stores in 23 Chinese cities. But ha typical consumer in china spent less than $10 in hypermarket while in western consumers it is $31. This average spending for single consumer has to be increased to increase the company’s market share.

To encourage Chinese shopper to spend more money several steps can be taken, like people prefer specialty stores for electronics and furniture and other products rather than hypermarkets. Thus Careefour need to change that, by offering some consumer service and after sale service, hyper-markets are too huge is size and thus customers have to go round all the store to find some products even if its is organized, some people find it difficult to find some products in the hyper-market. Company need to make some mid sized hype-markets with mid sized area so that costumers can easily reach to their products. Also work force for the hypermarkets needed to be increased so that they can help and guide the customers for their products.

As hypermarkets are large in size customers visiting the store will be high to, so that higher work force will help to increase the relation with consumers visiting the store.Some customers finds hypermarkets as time consuming shopping, as they need to wait at

the billing counters with their products, some customers buy many things from store while some buy one or two, and thus customers with less items have to wait long in line after them, which makes them uncomfortable. Thus Carrefour needs to improve their system in it. By providing many short-term discounts on different items used frequently helps attract customers to store, providing long discounts on single items is not proffered, and thus offering small discounts on different items simultaneously makes customers attention to store.

China market posses a huge number of population and thus company have more chance to increase their market, as their potential in hypermarkets is high since its invention 5 decades ago. ?