Subject : How are negotiations approached in retailing? Company : Carrefour SA, french grocery and general merchandise retailer. Ingrid DEKKERS - 28/11/2011

 World’s second-largest retailer  N°1 retailer in Europe  Net sales : M€ in 2010

Average inventory level at Carrefour in 2008: 37 days of Cost of Goods Sold 2008 Forecast

Substancial Goal Relationship Goal Win Lose Some points cannot be negotiated The most important is reaching objectives, whatever the others obtain If the supplier is in a stronger position, imagine way to balance the situation Lars Olofsson, Carrefour CEO since 2008

Accomodate Build friendly relationship Collaborate Creative problem solving Withdraw Take what you can get Defeat Be a winner at any cost Compromise Split the difference Concern for substance Concern for relationship

Contractuals common contents of negotiation : Entrance right Entrance Each new product Each new stores Promotion Advertising References Shelving Delivery delays Payment delays

MK : the first instant noodles supplier in China Substancial goal : Price increase Problem : margin distribution Carrefour used an adversarial approach MK stopped supply Carrefour Stock shortage negative impact on Carrefour image

Accomodate Build friendly relationship Collaborate Creative problem solving Withdraw Take what you can get Defeat Be a winner at any cost Compromise Split the difference Concern for substance Concern for relationship