13 / 266
13
2014 Registration Document
Presentation of the Group
1
Activities and strategy
Carrefour in Latin America
Carrefour has been operating in Latin America since it opened its first
store in Brazil in 1975 and has become one of the region’s major players
in retail. Carrefour is expanding its banners on two growth markets:
Argentina and Brazil. The Group has 830 stores in total, including
291 hypermarkets, 169 supermarkets and 370 convenience stores.
In 2014, the network grew to include 13 new Atacadão stores and
4 convenience stores in Brazil, along with one new Carrefour Maxi store
and 51 convenience stores in Argentina. These new stores account for
an additional 84,000 sq.m of sales area.
In Latin America, organic sales were up sharply at +18.1%, on an already
high basis of comparison in 2013 (+12.3%). A unfavorable currency
effect over the year resulted in a sales increase of +0.8% at current
exchange rates. With recurring operating income of €685 million in
2014, profitability continued to improve over the year in the region,
driven not just by store performance, but also that of financial services.
Good control of operating costs combined with increased commercial
margin also helped growth in profits.
In Brazil, Carrefour is the leader in grocery retail. The Group operates
102 hypermarkets, 111 Atacadão stores and 41 supermarkets there as
of year-end 2014. Net sales in Brazil totalled €11.1 billion, an increase of
12.2% at constant exchange rates. Performance was excellent across all
formats: hypermarkets continue to see improvement, and the Atacadão
banner is strengthening its leadership position as it continues to expand.
Carrefour opened its first Express convenience stores and its first Supeco
banner stores in Brazil in the fourth quarter.
Carrefour has been present in Argentina since 1982 and is the leader in
grocery retail thanks to its multi-format presence. The Group manages
74 hypermarkets, 4 Carrefour Maxi stores, 128 supermarkets, and
366 convenience stores. Net sales totalled €2.7 billion – up 37.6% at
constant exchange rates and down 6.4% at current exchange rates on
the previous year. Argentina showed strong performance in a context
of regulated prices.
Operational investment in Latin America totalled €622 million in 2014,
representing 4.5% of sales, versus 3.3% in 2013.
Profitability improved during the second half, with the operating margin
up by 30 basis points to 3.8% of sales, demonstrating the effectiveness
of the operating model.
Carrefour has been present in Spain since 1973 and is the country’s
second-largest multi-format grocery retailer, and the leading operator of
hypermarkets. As of the end of 2014, its stores under banners included
174 hypermarkets, 123 supermarkets and 285 convenience stores. Net
sales totalled €7.8 billion, broadly unchanged.
Carrefour has been present in Italy since 1993 and now ranks 6
th
in
a fragmented grocery market. It holds strong regional positions, such
as in Val d’Aosta, Piedmont, Lazio and Lombardy. The Group manages
59 hypermarkets, 456 supermarkets, 624 convenience stores and
19 cash & carry stores in Italy. Net sales totalled €4.7 billion – a 1.7%
drop in total.
In Belgium, Carrefour is one of the three largest grocery retailers thanks
to its multi-format presence: 45 hypermarkets, 439 supermarkets, and
260 convenience stores. Net sales stood at €4.0 billion – roughly stable
compared to 2013.
Carrefour directly operates in two other countries, Poland and Romania,
with combined net sales of €2.7 billion, up 2.4%. Carrefour has been
operating in Poland since 1997, with a network of stores under Group
banners which includes 96 hypermarkets, 138 supermarkets and
468 convenience stores. Carrefour has been operating in Romania since
2001, managing 27 hypermarkets, 94 supermarkets and 53 convenience
stores.
The Group is also present in other European countries through various
partnerships, including Greece, Cyprus, the Balkans and Turkey. In
these countries, the Group has 88 hypermarkets, 569 supermarkets
and 345 convenience stores under banners.
Operational investments in Europe totalled €536 million in 2014 – up
31% compared with 2013 – representing 2.8% of sales.