1. Carrefour Presented by: Shirley Chen, Yi Wang, Lindsey Milliken, and Julie Hoff

2. Agenda Introduction History Industry Analysis Company Analysis Competition Recommendations

3. Introduction Largest retailer in Europe Second largest retailer in the world Various retail business 22 nd of the top Fortune 500 companies 11,000 stores 420,000 employees More than 30 countries and areas

4. History 1959- Fournier and Defforey founded Carrefour in France 1960- the first supermarket began in Annecy, Haute-Savoie 1963- the world's first hypermarket 1969- the first overseas hypermarket was built in Belgium

5. History 1973- hypermarket in Spain 1975- hypermarket in Brazil 1982- hypermarket in Argentina 1988- Carrefour owned 65 hypermarkets domestically 1989- first hypermarket in Asia, in Taiwan

6. History - Carrefour in America 1990- first hypermarket in Philadelphia, United States 1991- second hypermarket in New Jersey 1993- Carrefour closed two stores in America

7. History 1993- first hypermarkets in Italy and Turkey. 1994- first hypermarkets in Mexico and Malaysia 1995- first hypermarket in China mainland 1996- hypermarkets in Thailand, Korea, and Hong Kong

8. 2000 – Market share began to fall in France 2003 – Wanted to change its governance policy to expand into new areas

9. Industry Analysis Carrefour Since 2005, the market has grown 4.2%, almost $949.3 billion 3 essential reasons why hypermarkets stand out from typical supermarkets and retail chains: 1)Products 2)Location 3)Prices

10. Global Issues Diversity and cultures of new area Government Regulations Pressure on smaller companies

11. Risks Competition Location

12. Future Trends Technology Online shopping

13. Strengths Hypermarket

14. Breakdown of consolidated net sales by store format December 31, 2005

15. Hypermarket's Advantages Diverse products Convenient location Possibly low price

16. Large Economic Scale Great number of stores 11,594 in Europe 835 in Americas 471 in Asia 5 in Africa High speed of setting-up new stores

17. Weaknesses Produits libres  Low end products  Increased obligations of quality Monopoly to suppliers

18. Opportunities O nline stores Reduce capital expenditures  Land costs  Labor costs Increase trade efficiency

19. Global Expansion Carrefour: 50% of its sales in the international checkout  Located in 29 countries Wal-Mart: 16% of its sales outside of America  Located in 11 countries

20. Threats Severe working environment unconcerned relationship between employers and employees Globalization competition from big retailers as well as local stores

21. Indirect Competition Convenience Stores - general merchandise and various supermarket items Shopping Centers - variety of items all in one location Grocery Stores - sell food items

22. Direct Competition Auchan - French grocery chain E. Leclerc - cooperation of over 550 food retail franchises Aldi - European discount chain Ahold - largest grocery retailer in Amsterdam Tesco - Britain’s largest retailer of grocery and general merchandise Wal-Mart - world's number one retailer

25. Recommendations Open a Daycare inside Carrefour Incorporate a fitness area into the store for white-collar groups Enter into more Mexican markets Discover more sales promotions to attract customers.

26. Conclusion