“Today, Carrefour is much better equipped to tackle the future. » This is the observation made by Alexandre Bompard, the CEO of the distribution group, on Tuesday November 8, when announcing his strategic plan for the next four years, called “Carrefour 2026”. For its implementation, the company, which achieved a turnover of 81.2 billion euros in 2021, will increase its investments, to 2 billion euros per year, against 1.7 billion currently.
After putting the company afloat from his arrival in July 2017, the CEO is tackling an overhaul of his business model to adapt it to the inflationary economic situation and ecological issues. In France, in its stores, Carrefour is not seeing a drop in sales volume, but a change in consumer behavior: they come more often, do smaller shopping with more private label and lower priced products, looking for the best deals to best manage the end of difficult months.
A context that pushes Carrefour to accelerate the development of its own brand, which will be the backbone of its business model, with the objective of achieving 40% of the group’s turnover in food products in 2026, against 33% in 2022 and 25% in 2018. “It’s a major break. This means that one out of two food products that we will sell will be Carrefour branded.said Tuesday, Mr. Bompard, from the company’s headquarters in Massy (Essonne).
“Certified sustainable products”
Faced with concerns about purchasing power, Carrefour will also import its brand of cash & carry, Atacadao, which is a hit in Brazil, where it should have more than 470 stores by 2026. This model of selling large volumes on pallets is similar to that of Metro or Costco, open to individuals and professionals, but without the forced to have a card or subscription to do their shopping there. A first store will be tested in September 2023 in Ile-de-France.
The group will continue to develop its other discount brand Supeco, particularly in Spain, to reach 200 stores in total by 2026, i.e. 80 more than currently. Last anti-crisis resort, the hypermarket, whose model seemed doomed. It will be a strategic pillar in the race for low prices. “I believe in the value of this format. It is a bulwark against inflation, provided that it fully assumes its popular vocation, and its role as the first discount format”launched Mr. Bompard.
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