Carrefour - 2017 Annual Report

C A R R E F O U R — 3 2 Revitalising hypermarkets As showcases for the quality and diversity of Carrefour’s food, the crucible of its professions and know-how and the linchpin of shopping arcades and retail services, hypermarkets are a major asset for the Group. They are the solution of choice for customers who want to find everything under one roof at the best price; a store format that has to be adapted to respond to changes in the market and customer expectations. Optimising the offering to achieve competitiveness gains Cooking, entertaining, dressing, personal grooming, home decorating... Carrefour’s hypermarkets offer quality products at very attractive prices across all categories. All year round, customers know that they can find a simple, innovative offering of between 20,000 and 80,000 food and non-food items at the best value for money. With an average area of 7,345 sq.m., the hypermarkets follow a schedule of seasonal sales campaigns demonstrating the attractiveness of the format: back to school, Christmas and New Year, etc. To achieve productivity and competitiveness gains, Carrefour will completely overhaul its offering, co-developing its assortments to reflect what consumers really want. The Group is thus aiming to reduce its assortments by more than 10% while reinforcing the dynamic of existing partnerships, such as the agreement with Fnac Darty for cooperative purchasing of domestic appliances and consumer electronics in France. At the same time, Carrefour is developing its exclusive services in stores and online, including banking, insurance, travel, entertainment, petrol, over-the-counter drugstore products or car rental. Following the development of Carrefour Ottico stores in Italy, French customers will soon be able to discover the Carrefour Optique and Audition banner in partnership with the optician Atol. Adapting stores Adapting hypermarkets to their catchment areas is both an economic and a commercial challenge. In every country, Carrefour is revitalising its assets in line with local needs. In France, more than 100,000 sq.m. will therefore be reallocated by 2020, involving both the development of service areas for customers (click & collect, food court, etc.), the sale of retail space to shopping centres and the introduction of a new commercial offering by creating outlets, order preparation areas or cash & carry activities. In stores or in adjoining shopping malls, new, innovative concepts will be introduced to support the food transition or to meet new needs. The new Carrefour hypermarket in Warsaw is thus emphasising fresh, organic and diet products in a locally adapted store. To compensate for its reduced size (2,000 sq.m.), more than 16,500 products are available via interactive screens and can be either delivered to customers’ homes or collected from a special pick-up point. At the same time, Carrefour and its partners are stepping up initiatives to satisfy expectations, including creating food courts and leisure areas (climbing wall, sports halls and free jumping space). The first outlets in French hypermarkets In France, Carrefour has opened its first outlets, with areas ranging from 550 to 1,500 sq.m., inside hypermarkets dedicated to clearing stocks of non-food merchandise with discounts ranging from 30% to 70%. This is an original concept designed to diversify store offerings and to allow customers to benefit from one-off discounts on a wide range of products, including tools, garden furniture, tableware, leather goods, toys, Christmas decorations, etc. CREATING AN OMNI-CHANNEL UNIVERSE OF REFERENCE