Carrefour - 2017 Registration Document

PRESENTATION OF THE CARREFOUR GROUP Strategy of the Carrefour group 2017 REGISTRATION DOCUMENT | CARREFOUR 1. 6 Strategy of the Carrefour group 1.1 Major changes 1.1.1 The food retail industry is facing the effects of three major changes. The first major change is the transformation of the competitive landscape . Innovation has given rise to global platforms that offer almost everything in just a few clicks, highly specialised retailers that define and dominate certain product categories, startups that are making things easier for consumers every day, and new alliances that are reshaping the market. the development of new technologies and new distribution channels. Customer loyalty to a particular brand is no longer automatic, the customer path is less linear and more fragmented. The second major change is the shift in customer expectations . Customers have always wanted things to be better, faster and cheaper. However, this trend is now gathering speed because of The third major change concerns food and eating behaviours . Consumers will no longer tolerate uncertainty about the quality of the food they eat, and this intolerance will increase over time. They are demanding more information, transparency and quality along the entire food chain. The Carrefour group therefore needs to achieve an in-depth transformation so that the strength, quantity and diversity of its assets can reveal their true value. A renewed ambition 1.1.2 “Carrefour spearheaded one of the main battles of the 20 th century: consumption democratisation. It now needs to be at the forefront of one of the major challenges of the 21 st century, at the crossroads of economic, social, health and environmental issues: become the world leader of the food transition for all , by offering consumers – every day and everywhere – quality, healthy food at a reasonable price. To return to a conquering dynamic, we must revamp our model by simplifying our organisation, opening ourselves up to partnerships, improving our operational efficiency, investing in our growth formats, building an efficient omni-channel model and developing our fresh and organic products offering, notably under the Carrefour brand. This is the meaning of the ‘Carrefour 2022’ transformation plan, which the Group and its teams will implement with ambition and determination.” Alexandre Bompard, Chairman and Chief Executive Officer, January 23, 2018. Carrefour recognises that the agricultural production model is challenged by the decreasing yield from farmland, rising pollution, farmers finding it difficult to make a living from their work, etc. Consumers are also aware of the issue; they have never been so concerned about their diet. Despite being told that they have never eaten better, they are more concerned than ever. They are better informed and have more choices than ever before, and yet they feel they no longer know what they are eating. As a result, they are taking a renewed interest in the products they buy. They want easy access to information and clearly defined quality standards. Food is not like other products; its value is much higher than its price. Carrefour is therefore faced with structural changes in production and consumption that are driving an urgent need to overhaul the Group’s business model. Carrefour has set itself a universal ambition: to help its customers consume better, by becoming the world leader in the food transition for all. To help achieve this ambition, the Group will be creating an Advisory Food Committee made up of leading experts. With its network density, daily proximity to millions of customers, services, affordable prices and broad selection of food products, Carrefour has the means to successfully implement this transition in all the regions in which it operates.