France-based Carrefour has said ‘better momentum in France’ and accelerating growth in Brazil’ had underpinned an acceleration in sales growth during the third quarter. Carrefour said total sales rose 2.7% at constant exchange rates, to €21.09bn, with like-for-like sales rising 2.1%.

Roll out of 2022 Transformation Plan aiding results

The retailer pointed to the roll out of its 2022 Transformation Plan as supporting its better performance in Q3 and the improvements made as 2018 has progressed. The acceleration of sales in Q3, versus H1, was most notable in the key markets of France and Brazil, where the retailer has placed a lot of strategic and commercial focus.

Carrefour growing presence for omnichannel offer

A key element of the 2022 Transformation Plan is focused on building out its omnichannel presence and enabling shoppers to move more easily between its stores. In its results it highlighted the opening of new Drives and pedestrian Drives in France, expansion of its home delivery service and the revamping of its websites to make it easier for shoppers to buy from a range of categories, including food and non-food.

Investment in its stores continued. In France this has seen it reduce the selling area of hypermarkets, with about 10,000 sq. m already reallocated and 40,000 sq. m more being investigated. It has also seen Darty shop-in-shop areas trialled in a store, with two likely to be in operation by the end of the year.

In Brazil this saw it add new stores to enable it to enter new areas and provide shoppers with greater choice. Carrefour said it had opened more than 300 convenience stores and 14 Atacadão in the country over the last nine months.

The numbers…

By geography, Carrefour reported that:

• France: Carrefour enjoyed an improvement in like-for-like sales in Q3 across all formats. It said food remained the main driver of its performance, with non-food markets remaining difficult. By format it said:
  • Hypermarkets: total sales: +0.3%; like-for-like sales +0.0%;
  • Supermarkets: total sales: +3.2%; like-for-like sales +2.6%;
  • Other formats: total sales: +6.1%; like-for-like sales +4.7%;
• Other European markets: The retailer said it had seen a stable like-for-like trend across the countries versus the first half. By country it said:
  • Spain: total sales: -1.7%; like-for-like sales -2.7%;
  • Italy: total sales: -5.7%; like-for-like sales -4.4%;
  • Belgium: total sales: -1.3; like-for-like sales +0.5%;
  • Poland: total sales: +3.2%; like-for-like sales +2.7%;
  • Romania: total sales: +7.6%; like-for-like sales +4.0%;
• Latin America: Carrefour said it had enjoyed ‘continuing strong sales momentum in the region aided by an end of food inflation in Brazil and market share growth in Argentina. By country – at constant exchange rates – it said:
  • Brazil: total sales: +8.1%; like-for-like sales +5.1%. By format it said:
    • Carrefour Retail: total sales: +2.2%; like-for-like sales +2.5%;
    • Atacadão: total sales: +11.2%; like-for-like sales +6.2%;
  • Argentina: total sales: +26.8%; like-for-like sales +28.6%;
• Asia: It noted that it had seen ‘improving trends mainly driven by an improvement in China, where ecommerce had gained. By country – at constant exchange rates – it said:
  • China: total sales: -6.6%; like-for-like sales -4.8%;
  • Taiwan: total sales: +6.0%; like-for-like sales +1.4%;

Carrefour Brazil has announced plans to invest BRL1.8bn (USD443.2m) into opening new stores.

Store openings

Carrefour Brazil hopes to open 20 wholesale Atacadão stores, and additional small-sized Carrefour Market and Carrefour Express stores. Though the exact numbers are unknown. The new stores will be opened in 2019.

Continued expansion

Carrefour Brazil’s planned investment shows a continued effort to expand and increase market share. In March 2018, the retailer set out plans to implement the 2022 transformation plan. The expansion plans set out in 2018 have, therefore, continued into 2019.

Carrefour Brazil building out omnichannel strategy

As part of its Transformation 2022 programme, Carrefour Brazil has been focused on expanding its presence across formats to support its omnichannel aims. In the retailer’s H1 2018 results it spotlighted the steps it had taken to implement these changes, with an acceleration of expansion of its cash & carry format being key.

The investment plans announced by the company, therefore, will help it continue to advance these strategies and help it drive top line growth, despite challenging market conditions.

As Carrefour looks to play a leading role in ‘food transition’, through which it will enable shoppers to consume better, higher quality, safe and socio-environmentally responsible food, it is rolling out several initiatives. We review the steps it is taking as part of its 2022 Transformation Plan.

Carrefour launches ‘Act for Food’ initiative

Carrefour Group has launched ‘Act for Food’, which will see it invest in definitive steps to help Carrefour shoppers and its staff to eat better. The retailer says that the initiative will also aim to make healthy food more affordable. Carrefour said the ‘Act for Food initiative’ would enable it to increase the pace of its food transition. The global campaign will be initiated in France and will focus on nine commitments:

• Guarantee 100% French organic for its fresh products under the Carrefour Bio brand
• Ban 100 controversial substances from all Carrefour food products;
• Reduce or completely end the use of chemical pesticides with its plant product lines;
• Reduce or completely end the use of antibiotics in livestock farming;
• Guarantee transparency in relation to product traceability using blockchain technology;
• Feed the livestock used for its product lines on GMO-free animal feeds;
• Double the number of products in its vegetarian range;
• Promote biodiversity by selling fruit and vegetables grown from farmers' seeds;
• Guarantee a selection of fish sourced using responsible fishing methods and aquaculture.

Carrefour will enable shoppers to read about the programme and its aims by visiting the specially created web site www.actforfood.fr.

Since its launch in France, Carrefour has said it is rolling out a global campaign across all the retailer’s 10 integrated markets: France, Spain, Belgium, Italy, Poland, Romania, Brazil, Argentina, Taiwan and China.

Carrefour trials organic shop-in-shop in France

Local trade publication LSA has reported that Carrefour has opened a 550 sq. m organic-focused shop-in-shop concept at its Chambourcy hypermarket. The concept, dubbed the organic experience, stocks nearly 4,000 SKUs, of which 800 are brand new and 150 enable shoppers to buy products in bulk. The area combines all categories, from alcoholic drinks to home care, gardening products and more traditional items like fruits and vegetables, fresh and food-for-later products too.

Located as part of the shopper journey from fresh to more conventional centre store ranges the space been created by Carrefour switching sales area from non-food ranges. Some products remain ranged within their categories, with areas dedicated to organic products on some counters and in health and beauty. Mirroring the steps taken in its Montesson hypermarket, where it has upweighted services, advice and the presence of staff, two experts have been placed in the area to provide help and advice.

Carrefour to establish food advisory committee

At a group level, Carrefour has said it will create a food advisory committee to support its aim to ‘become the world leader in food transition for all’. The committee is targeted with sharing best practices, proposing new ideas and leading forward-looking discussions about changes in food consumption. Members of the committee, who will advise Carrefour’s head of food transition, Laurent Vallée, and the marketing director for organic, Benoit Soury, is made up of seven people from outside the retailer.

Carrefour Brazil launches ‘social gastronomy’ programme

Under the auspices of the Carrefour Foundation platform, Carrefour Brazil is aiming market zero-waste recipes and production lines in conjunction with NGO Gastromotiva. As part of the initiative, in which Carrefour will invest about €320,000, Gastromotiva will build the Gastromotiva Innovation Laboratory, which will be dedicated to the development of zero-waste recipes. Carrefour has committed to developing a product line for its stores.