Carrefour - 2017 Registration Document

1 PRESENTATION OF THE CARREFOUR GROUP Description of the Group’s business CARREFOUR | 2017 REGISTRATION DOCUMENT 19 Supply chain operations 1.3.4 In every country, Carrefour pays particular attention to its supply chain, which is a key driver of its operational efficiency. including ordering merchandise from suppliers, receiving, storing and preparing the items in warehouses and then delivering them to point of sale and stocking them on store shelves or delivering them The various logistics units, which involve more than 20,000 directly to customers. employees and service providers worldwide, are there to serve the Group’s various store formats and customers. They lead all the operations involved in cross-functionally managing the flow of goods and information amongst all the links in the supply chain, As of end-2017, Carrefour had more than 100 warehouses in its integrated countries, operated either by service providers or employees. Property management 1.3.5 Carrefour also enjoys extensive real estate expertise, which it leverages to enhance store appeal and realise value, with the goal of creating and operating aligned, well-managed retail environments for customers. Its ambition is to design places conducive to a warm, friendly shopping experience, while sustainably contributing to the appeal and vitality of each host city and region. Whether the stores are located in city centres or on the outskirts, in historic shopping districts or in new neighbourhoods, this vision of retail requires solutions aligned with changing environments, lifestyles and spending habits. Capitalising on its powerful banners and proficiently managed retail formats, Carrefour is designing new generation shopping and lifestyle environments that act as sustainable sources of economic and social vitality for their host communities. As of December 31, 2017, the Group operated 17.6 million sq.m. of sales area under its banners, with property and equipment being mainly comprised of sales areas operated by the Group. The Group’s store ownership strategy depends on the country and the format. In general, the Group owns most of its outlets’ total sales area, with ownership accounting for more than 65% of hypermarket sales area and around 50% for its supermarkets. In France, Spain and Italy, hypermarket and supermarket real estate is held by Carrefour Property , which manages nearly 1,300 proprietary Carrefour-brand stores. The unit also has all of the real estate expertise needed to lead the Group’s real estate projects, in such areas as asset management, project management and design, delegated project management and property management. Carrefour is also bringing highly ambitious retailing environment projects to life in other countries, with the support of the Property Division ’s commercial real estate experts in Belgium, Romania, Poland, China, Taiwan, Brazil and Argentina. In every host country, the combination of property and retailing expertise is making it possible to design and operate multi-format complexes aligned with shopper needs and aspirations, from shopping centres and retail parks to neighbourhood shopping malls. The Group can also rely on the Carmila property company, specialised in enhancing the appeal of Carrefour shopping centres. Working in synergy with the hypermarkets, it deploys a local and digital cross-channel marketing strategy to improve customer satisfaction, retention and recruitment, with the help of partners in the shopping malls.