The Carrefour Group the First 25 Years

The CarrefourGroup the First 25 Years by SteveBurt University of Stirling, UK

Abstract The Carrefour group has beenresponsible for introducing severalinnovative concepts to the French retoil sector - most notably the hypermarket and "no-name" products. This article charts the development and strategy of CarreJourover the first 25 years of the company's existence.

Introduction Thedeath of MarcelFournier, in January1985, saw the passing of one of the leadingfigures in Frenchretailing. In collaborationwith the Def- forey family, Fournierguided the Carrefourgroup to its presentposi- tion asthe mostsuccessful hypermarket chain in France.Since its crea- tion by Fournierand Louis Defforeyin 1959,the group hasgrown to achievea 1985post-tax turnover of 44,169million francsand a net pro- fit of 520million francs(see Figure l). In addition,during the past25 years,the Carrefourtradename has appeared in no fewerthan ten coun- tries spreadover three continents. The groupacquired its tradenamefrom the siteof the first storeopen- ed by Fournierand Defforeyin 1960.This 650sq m supermarketwas Iocatedat the crossroads(carrefour) of the rue du Parmelanand rue Andr6:Iheurietin Annecy.However, it wasin 1963that Carrefourfirst madeits mark on Frenchretailing. The previousyear Fournier attend- edthe ClubMMM seminarheld at Dayton,Ohio, and became convinced that the retail techniqueschampioned by BernardTiujillo would pro- vide the way forward for Carrefour.Early in 1963,Carrefour opened the first hypermarketin Francein the smalltown of Sainte-Genevidve- des-Boisoutside Paris. This ventureproved to be an instant success,

54 | International Journal of Retailing 1,3 99 | dnotC rnofa DJ aqJ

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oJuururoJJadl€Jcuuuld :dnolg JnoJOJJBJeql .I a.rn8lg closely associatedwith this new form of retailing, Carrefour initiated a franchise system for hypermarkets through its buying subsidiary, Samod.The Cora group, Promomag(a subsidiaryof Promodbs),and GrandsMagasins Ardennais took advantageof this system,and by 1973 a third of the Carrefour storesin Francewere franchised. However, this franchise arrangementdid not last. Promodds, which operated three stores,left Samod at the beginning of 1974 to developits own "Conti- nent" tradename,as did Cora (nine stores)in 1975.The third franchiseg Grands MagasinsArdennais, was taken over by Carrefour in 1975,but the following year their two storeswere sold to Cora. Initial spatial penetration of the Carrefour tradenamewas also achieved through the formation of a number of joint subsidiarycompanies to operate stores. In 1967 Carrefour formed Sogara on a 50:50 shareholdingbasis with Guyenneet Gascogneto developstores in the South-westof France.This venture was followed in 1972by the crea- tion of Soracmawith Docks Lyonnaisand Docks de Nevers,and Grandes Surfaceset Distribution (GSD) in conjunctionwith lAllobroge in the South-eastof France.In the sameyear Carrefour also acquiredDecr6's 49 per cent stakein Sogramo,a joint subsidiaryformed with Comptoirs Modernesand basedin the North-westof the country. As a consequenceof thesetwo developmentstrategies the Carrefour tradenamewas quickly diffused throughout most regionsof Francg par- ticularly in the North and West (Map 1). However,in 1973less than half (18)of the 43 storestrading under the Carrefourname in France were fully owned by the parent company.Of the remaining stores, 14 were franchised, and eleven operated through the joint subsidiary companies. The year 1973was an important one for hypermarketdevelopment in France. The rapid expansion of this form of retailing in the late 1960s/early1970s was bitterly opposedby the small shopkeeperorganisa- tions. Facedwith the growingmilitancy of thesegroups in the early 1970s, plus the approachof Pompidou'sreferendum on extendingthe member- ship of the EEC in 1972,and the parliamentaryelections of 1973,the governmentappeared to give way to some of their demands(Eatwell, 1982).These concessions culminated in the introduction of the I-oi Royer in December1973. As Fourniercommented in the nationalpress at the time ". ..One saysthat it will act to regulatean economicand social problem.I rather havethe impressionthat one wishesto regulatean electoralproblem" (Doyere,1973). Part of this legislationchanged the role of the advisoryurban commer- cial planningcommissions established in 1969,effectively providing these bodieswith the power to refuseapplications for retail developmentsof

56 | International Journal of Retailing 1,3 LS I dnoe olarrryC aqJ

'rnoJorrBS Jo fEol€lls trueudoloêpEu6ueqc oql ur pe1cogersr uorlelsrEol srql Jo lcudur eqa '(S86t 'Ug6t lgng) ql{oJE puorlesrueEroelarqce otr srelreter,{q pefoldrue sarSele-rlsoql ur saEueqcpaSernocua pu€ suorlucrldrur ural-1"roqs peq.{lpalqnopunuorlelst3el egl 'roâ,r\oH'q}r\orE rurel-Euo1 uodn pa;ge 011]llpBq seq re,(oA Io-I eql leqt slseSSns'srurq eErel i(q rolces 'eJuerC1rc1er lelrerured^(qogl Jo ecueurruopposeercul oql pue ur ecedsrool; leryeurred,(qpue sle{JeruJed,tqgo roqunu eqtrul.qlrlorS panurluoJaqJ 'GtSt ,gOSyg7) suorssruuocesoql peleuruop 'suol1 se,rrleluoserdoJssoursnq lecol ro relr€ler IIBruss€ dpulncrlred -zcrlddelaryeurred,{q;o Suqcolq oqtrroJ alq€roprsuocpepr, ord 'aororuuroJ Iepuelod A\ploql Jo JOtrsrurtrAIoqtr 01 eJnpecord pedde uB roJ pa^\olp uo4eyst8e1eqr q8noqrly '(64615eneg-uo^nog pup rerureg-nafneeg) '(sluelrququr slrun Eurlsrxeol ru bs 002 reô Jo suorsuolxaroJ pu€ O99'67ue4 sselJo sounuruocur ru bs ggg'y)eere sales Jo ru bs ggg'1rarro

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tL6I eJuEJtruI slo{rururod.{11rno;arruJ 'I dutr\tr One of the major impactsof the Loi Royerwas to raisethe costsof developmentthrough delay, increased application and appealcosts, and the creationof a marketfor authorisedsites (Rochard and Peretig l98l). In 1980Carrefour claimed that the Loi Royerhad increasedthe costs of buildinga storein Francefuom2,577 francs per squaremetre in 1972, to 3,500francs per squaremetre in 1979(LSA 757,1980).In addition, Carrefouralso felt that the companywas penalised for its ascendancy in the hypermarketsector through low successrates in applicationsmade to the planningcommissions. In an attemptto outmanoeuvrethese restrictions,since 1974 Carrefour appears to haveplaced greater emphasis upon expansionthrough joint subsidiarycompanies and acquisition. Analysisof companyreports and storelistings provided in the French tradejournals Libre ServiceActualitds and Points de Venteshow that between1963 and lgT4,theparentCarrefour company opened 19 hypermarkets.Of thesestores, only one appearsto havebeen the resultof a takeover,the former GaleriesParisiennes store at Antibeswhich Car- refouracquired in 1973.Over the same period, twelve stores were opened by joint subsidiarycompanies, and only one of these,the former Centor storeat kscar, wastaken over. In contrast,the 1975 to 1985period presents a differentpicture. During this periodthe parentcompany opened a further 16stores, closed a store at Cr6teilin 1979,reduced the storeat Villeurbanneto supermarketstatus in 1977,and transferredthe Chdlons-sur-Marnehypermarket to a sub- sidiarycompany SCI Croix Dampierrein 1981.However, in realityon- . ly eightof thesestores were new openings; the otherswere existing stores that wereeither absorbed or acquiredfrom joint subsidiarycompanies. Irt 1975,the threeSoracma hypermarkets were absorbed into the parent company,as was the VenetteSuperstore hypermarket in CompiBgnedur- ing 1977.These moves were followed at the beginningof 1980by the absorptionof the hypermarketsat Givors(from GivorsInvestissements) and Rambouillet(Bel-Air), and in 1982bythe absorptionof the store transferredto SCI Croix Dampierrea yearearlier. Finally, in 1983,the hypermarketat Gennevilliers,which wasoperated through SEMGS in conjunctionwith RogerFlament, was absorbed by the parentcompany. The increasedimportance of joint subsidiarycompanies in maintain- ing Carrefour'sgrowth is illustratedby their activitiesorrer the same1975 to 1985period (seeFigure 2), during which thesecompanies opened 25stores, five of whichwere later absorbed by theparent Carrefour company.GSD openedanother two stores,one of which wasthe former G6antPerso hypermarket at Chdteauneuf-les-Martiguesacquired from Soprodisin 1977;Sogara opened three stores including gaining full control of the Sochadis"Rendez Vous" hvoermarket at Sovauxin 1977and

58 | International Journal of Retailing 1,3 6tS I dnotg rnotarrD1 aLlJ

'drerprsqns srql t€ql ,(1a1{uraas plno^\ 1I lulol csD eq] Jo lorluoc 'oJnluo^ 1ng permbce986I qtJ"I I ur pue lulof otu€rEoseqtr ur JoutrJBd 'seureporu Jroql sJlolduroCul eJer{slual Jed 61 e Eurrrnbce,{q 7961ug 'soJnl sorolsqcuard rroqtr Jo dgqsreumooqtr pepp[osuoc requnJ JnoJeJJeJ -ue^ osaqlJo aruos,{q pelaado seJotrsJo uolldrosqBluenbesqns oqtr puB 'seru€durocdrerprsqns lurol yo uorleJodoeq1 qEnorql ,(lueruud ocu€Jd ur papuedxeseq JnoJoJJBJ'?16I ecurs'letll rtroqssluarudolerrep eseqg 'peluasardarueeq ,{lsnovrerdlou peq,{eq1eJoq^\ ue 'eJueJd qiloN 0q101 sseJceqtrl^\ rnoJorr€J Jo 's1o>Fuured,(q peprirordluaurdolelep "oJe JotrtrBlsrr{J ..lulod puou,, uoâs Jo uorl€iodo 3rI1re o elel 01 luolueôl J a,rtleredo-o3 Eulpe eq1qlul 'doocre3 ',{rerprsqns 't86I lurof e peuroJ rnoJaJJeJ586I ul tleurg ul '186I eule5-,{arrasllÎ1" srpBcuBrdpuE ul ouogs-rns-ser{cQJJ1€ TIAJO '096I ul notrrod-nplmouosser{Jl€ dCC sarJ€rprsqnsnau qSnorql pe -uedoa-ram sarols roqlo 'xnorlg pue 'lmerno51-i(rrn'aureyq-rns-sdueq3 1" serols oorql Iorluoo o1 lsaredng dreplsqns aeu B Jo uorl€erc oql qtrl^\rorllrnJ uo{81 s€,r oruerSogur seurapol4lsrroldruo3 qll^{ uortr€roqel 'uo1-rns-eqJoU loJ eql e1 1u tosrpog ituerprsqnse q8norql ouo - sorolso1r\1 roqunJ e peuedooruerSoS pue isulnoEuv 1" eJolsuBJocos eql

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Storesoperated by: o Joint subsidiarycompanies O Carrefour (parentcompany)

approach to further development will continue as not only does this strategyspread the initial costsof development;but also applicat- ions for developmentmade in conjunction with local or regional retailerswere thought likely to be viewedmore favourably by the planning commissions.By 1985Carrefour operated 60 hypermarketsand four supermarketsin France(Map 2), and 48.3per cent of the hypermarkets werecontrolled through joint subsidiarycompanies. The formation of Carcoopmarked the beginningof renewedexpansion for the group within France.During the early 1980sthe numberof new storeopen- ings had fallen to around one per year,but this collaborationadded sevenstores to the Carrefourportfolio, and a further five newstores arescheduled for completionduring 1986.

60 | International Journal of Retailing 1,3 Lg I dnorg rnotarnC aLIJ

'lsetrBeJE ss.'rrtrdecuoc 1e{Jerurod.[r{ eql Jo qruorE arnlng JoJ I"l1 -uelod eq1eJeqa's1e4reru le1er pedolezrepssel eqtr uodn lueurlsazrurrcu pu€ socJnosoJel€Jluocuoc 01 pue 'ereqs^(1uo[eu € ploq 1ou pp dnorS oql qclq^\ ur suorleredoseosrolo esoqtr uorJ lselulstp ol ueeq o^uq ol srueosocueJd ur lueudole,repeJotrs e8re1 uodn peceld suollcrrlseroql 01 JnoJerJBJgo esuodseroqJ 'peoJqepeJnlue^ 'ueqcny JoIBIpue 'repeA 'gqc;euorng '1ape.go3'sqpouror4 '(LL6l '929 se VS7) 3.uollnqlJlsrp qruord Jo lsaq oql Jo uollelrodxq, eql 01 pel peq uoltels;3el eql lBqi 'sle{r€ru psluaruruocuole Jerurnod puorl€uJalur ursueJ ;o ppualod tre{Jerueql uodn,,(purgerou uerresroleredo laqreurred,tq qcuard Jo suop -uapp eql pasncoJe Eq 01 sreeddere,(oA to1 oqtrJo uollJnpoJlur eqJ 'e{els luao red gg ue peuruler rnoJoJJBJr{clqa ur uorlesrueSrouE - IIzeJgur Brrlsnpul o orcJoruruoJ o srl Jo uorleeJceqt fqy261raqure1dagut pe.t\olloJore,t. slueudoyenep aseql 'oEeurg teyeler qsruedgEulpeel eql qlr^\ 'reu1y 'ernluel lurof 'ereurp11',(ueduroc e poruroJ EL6l uI pue ue1€ll uB ur eJeqsluec red gE e permbc€ rnoJarr€J 'ZL6I uI'pedoleleprepun ,{1eEre1sem uelsds 'lno;er Irelor aq1 qcrq.r ur serrlunoJ ur pello^ur etueJaqdnoJE eql se -JBJ Jo,(Eelertrsl€uorl€uJatrul eqtr uI sEu€qtB pessaulrlr\s9461 dlree eq1 'lL6l llrdv ur qEnorql 1a; dqsreulred pesodord '€46I sF{i lnq Joqrueldegur relrelor uecrJeuv uE r{lvrl epeur flluered '(EL6l -de se^\ lueuesr8e uB suollerloEauEuyvrollog '4aa,Llssaulsng) (eJaq .pcrJaruv ol lr rlceel uec e \ pu€ ,tteu Eurqleuos posllap eleq '8urop 'pe>1;eruer e16 oJe oly\luqm Europ sr Sn oq1ur ,(poqop,, ,ftrog 'VSn -JeCs1ueq sV eqt q ldecuoc1e>peuued,{q eql roJ 1e4ue1odeql pe 'eurll 'e{"ls -sruEocerrnoJorr?J slql punor€ oslv luec red 1Ze peurcteJ qloq serueduocue61eg pue qcueJdeqtr qtqld ur - Uer{csllese81epue11 4redgne;1-ra1u1qSnorql (1uecred 71) ueEssnlgpue (1uacred gy) >ped -Jne) qlr^\ drqsreugedu\ LL6I Eurrnplo{Jeru ueruraD lso \ eql peJelue uolT e'I saJQJgezt€qleq pu€ JnoJoJJ€O'ernluozr lurof ue61eg aq1go llnsoJ € sB pu€ '9L61 uI relqo pue raulsax qlytt peuJoJ sen '1a4ruu 'd;erprsqns '1u1rdec -reqcneJqJs1 uerrtrsnvuy oql Jo luoc ;ed 96 Eururcru 'sEurp1o11 -aJoql plsq uorlnqrJtrsr(IJBoqsl€eq1K qclrl/r\ ur 1eryeurad,(11 'oJnluon 'ernlra;41 lulol )n B ur oreqsluac red 0I € pourcpJ pue JolIBtroJ ssllrrs oql qtrpr suopudlJrged op sgr{tr"ruredfg peturog 'urnrEleg ur uol'I e'I seJQJdozleqloq qlr^\ uorlcunfuoc ur serurJlsrq1pel€all JnoJoJ -nJ '6961 u1 'sure1s,(sEulpeler urapou pessassod,(peerle qcrq.r\ serJl -unoc uodn peleJluocuocservr dnorE eqtrJo lueruollo ur 's096I leuorl?uJelur IBIIIuI oqJ 01q eql Eulrnp oJuBJdoprslno serJtrunocur sle{J€ru -red.{q dolsrrep01 ralreleJqJueJd lsJrJ orll eu€coq 1l uoq^\ ecu€Jdur Eulpeler 1e1;eured,(qgo reauordeql sBeEeur slr pecJoJureJJnoJeJJBJ e,rpcedsra;I"uollsuJaiul aql In 1978,the groupsold its holdingin Distrimaswhich by then operated three storesto Delhaize Frdresk Lion (IS-4 666, lgTg), as dominant home competitors,market saturation,and legislationintroduced in 1975 restricted the future grorruthpotential of the hypermarket concept in Belgium.Disinvestment from Germanyoccurred ii 19i9, and the foilow- ing year carrefour sold its 50 per cent sharein verbrauchermarktwhich operateda 16,950sq m storein Vienna. Similarly a venturein South Africa involving two storesoperating through OK Hypermarkets(F,Ty) Ltd wasdisposed of in 1978.More recently,in 1983,Carrefour sold iti 10 per cent sharein HypermarketHoldings which operatedsix stores in Britain to its partner Wheatsheaf(Dee Corporati,on),and in l9g4 the group sold its share in Euromercato to Standa (LSA 922, l9g4). Euromercato,which controlledfour hypermarketsin Italy, had been createdin 1980by the mergerof the Italmare subsidiarywith the hyper_ market operationsof Standa.

Figure 3. The Ownershipof CarrefourHypermarkets Outside France 1969-85

i9 70 71 72 73 74 75 76 77 78 79 80 .81 82 .83 84 Year

* Consolidated- Storesoperated by companiesin which Carrefourhave at leasta 5O7oshareholding

62 | International Journal of Retailing 1,3 tg I dnotg tnolaltDJ aqJ

'€ S86I ulsds ul Ea{rulurad,{11rno;euu3 dEI tr '(g delnf) sorr€IplsqnssnoIJeA s1r qEnorqtr saJols 0Z Eullorluoc 'urcdg ut roleredo pryeurad,{q Eupuol eq1s€ paqsllqtlse se \ rnoJerreJ 'BJIôd pue aql ,(q 'salll^pc€eseql trlnseJB sv puB lPpuoc oc sg6l Jo Jo 'setagredng -u€g pue tq, q peluroJ,{uedruoc e sopuerg lqi ereSog S tet 'uotltppe ur 1-re1ugqsruudg sql perrnbcesopecreuuedlH op olouor4 uI '816I uI sopecJoluredrgap eclJaqluI ?qcJetuornglq pleq eJBI{s1u0c na-p aqi go asuqcrndeql ,(q pacro;urerptre'SL6l ut sopecreurradrll erolouord uoIlPuJoJ eqtr ut peleeder sen dretptsqns r€Iulv ep Jo 'setueduroc eql uI oEeu4Sqry'r lueruaEuerredqsreulred eq1 ,tu€IpIS -qnsJo Jeqrunue q8norql ecelduopl set{oJnluo^pu qsuedg s.JnoJoJrPJ 'eurlueEry uI erols trsrIJsll peuodo dnorE eql 'lrzeJfl 'BcueLuV Zg6l u\ puu ,(1;elnctged ulleT pu€ urcdg ut peluJluet -uoc ueoq seLl eculs JnoJorre3,(q peorqe aputu truotulsouI 0q1Jo vL6l'(g ,(lrrotetu N€^ eql orn8rg)seJols tg Jo luoo red 76 o1 ueslJpBtI uop 'pildec -rodord sql '586I ,{g aql Jo truecrad gg 1see1le plsq rnoJorre3 qsrqA\uI seF€lplsqns,{q pellorluoc oro^{qcIrIA'\. Jo pJlt{l e ,{p9 bcu€Jd eprslnosorols a paleradodnorE rnogeueJ 3I{19L6l uI ,tuep1s-qns le^\l 'Jo eqi yo orll sloJluoc,,(11uu1rodru1 lsotu lseJalulfltroferu lueuroEeueur '1se1earE p sploq rnoJaJJ€Cqcltll,\ uI soJnluelesoql ul pue se pallacred uoeq seq qu\orE leryuurrad,{qoJntrnJ roJ ppuelod eql areq^\ selrlunoc esoql ul polseûrarueeq seq slueulsoûlslpeseql ,(q pesmrpltdec oql Carrefourhas devoted considerable effort to adaptingand integrating its hypermarketoperation in Spain,including the regionalisationof buying to catermore efficientlyfor distinctregional tastes, and the adop- tion of a Spanishtradename (LSA 839,1982).Owing to the piecemeal historicaldevelopment of the chain,the group'shypermarkets original- ly tradedunder a varietyof namesincluding "Carrefour", "Pryca" and "Hiper", but it wasdecided to adoptthe Spanishname "Pryca" (Precio Calidad:Price and Quality) throughoutthe wholegroup to encourage integration. In Brazil,Carrefour has experienced similar success, with theTi"evo Com- mercioe Industria subsidiary(now renamedCarrefour Commercio e Industria)opening approximately one store per year. However, high rates of inflation havehindered the financialperformance of this subsidiary. and for certainstores problems of packagingand supplyof goodshave arisen.The third Carrefourhypermarket, opened in Brasiliain 1977, received80 per cent of its stockfrom Sio Paulo,some 1,300 kilometres away(Grobscheiser, 1977)! However, in spiteof thesedifficulties, Car- refourhas made considerable investment in the Brazilianmarket in which it operatedten storesat the endof 1985.The group'scommitment to expansionin SouthAmerica was reaffirmed following the openingof two storesin Argentinain 1982and 1984(Map 4). A further dimensionwas addedto the internationalstrategy of Car- refour whenthe companyacquired a 20 per cent stakein the Costco WholesaleCorporation of Seattleduring 1985. Costco, formed in 1983, operatestwelve discount warehouses in the Westof the USA. Although this deal involvedan agreementwhereby Carrefour would not extend their shareholdinginterest for five years(LSA 968,1985), the groupare using the opportunity provided by this investmentto examinethe Americanmarket carefully with a view to openingstores in the USA at somelater date. Essentially,since the introductionof the Loi Royer,Carrefour has con- solidatedand increased its investmentabroad, concentrating upon coun- trieswhere the retailstructure remains largely underdeveloped. In these countriesthe conditionsfavouring the modernisationof the retail sector resemblethose existing in Franceduring the early 1960s,when self serviceand the hypermarketconcept were rapidly adopted. Furthermorg Carrefourhave not beenprepared to undertakethe role of a "sleeping partner" and haveconcentrated on thosecountries in which manage- mentcontrol has been achieved. The importance of overseasinvestment to Carrefourcan be illustratedby referenceto the storeprofile of the group.In 1970Carrefour op€rated only two storesoutside France which accountedfor 11.8per cent of the group'sfloorspace. By 1975the

64 | International Journal of Retailing 1,3 Sg I dnor9 rno{auoJ aqJ

'uolsuedxg rnoJeJJ?Jol salols dola,rapo1 EIu"Jols€J luacelpe IIC 'euerolse3 'dnorE .ruuouroc ,(rerprsqns1u10t e pouroJ pue a1d1l p-eurulqornoJarreJ 'tr6l lntu IIC Eurpeeleqtr ul ereqsluec rad 1tr € rnoJerr€J 's0r6l e1el UrdV uf i.ropas 11€prreqlo u1seppngoddo lq8nos lq1 aurrnp aJu"Jd ur sdnorSlz1er eErq reqlo ,(ueurqllA\ uotuluoJ uI uoIlBJ.IJIsJoI( JoJ qcJueseql

'086I .Sg6I ul luec red Z'02 ot pue ,gL6l ul red g'1 luo{ ueslr sBI{selols es_aql ,{Q ul luac rad 7.g1ol luet 'acedsroog polunocc€ Jelournl dnorE eJuqseql i{lJ€lluqs JoJ lelol Jo '986I 'ecedsroog go l.rm nd ;76 roJ pelunocoe soJols?€ uI pue e^leA\l i,dnorE eql Jo lusc rcd g.g7 peluesarderaJu?Id eplslno serotrs

't 986I uJlJeurY qlnos q s1a4ruur.rad,(11JnoJaJJuJ ds6 hypermarkets.Castorama had beenformed in 1969from the company ownedby christianDubois, and had a similarimpact upon tt.-dly sectoras that of carrefour upon the food market.rne ririt cartoramu outlet, a 5,000sq m storeat Englos(Lille), openedin 1969,Uroueht a new dimensionto a retail sectortraditionairy dominated'bv sm?l specialistretailers (LSA 919, l9B4). Later in 1977both carrefour and castoramaacquired an lg per cent shareholdingin the carifornie group, a retaileror buitding niui.iia, operatingin spatiallycomplementary markets. This group*lr rulv uu- sorbedinto castoramain 197g.This particulardiveisificitio" inioblv retailinghas had considerablebenefit for carrefour,for as nr"ii o"r- foreyobserved in 1978,it^was generally thought thal pla;id;;rd_ sionwas easier to obtain for a completecomirerciat entity, ,uirriitiun for singleisolared units (2S,4 666 t97g). Carrefourhas also attempted-to diversify from its hypermarketopera_ tion into other sectorsof the food market.one of thi gro"p,r ririiui- temptsat diversificatioqwasthe r97gacquisition of a26peicent straie in the Dutch-companyFradema,. which iontrols 90 per .;rt ;iMA;;_ France,a cashand carry operation.However, the mijor aiuerriri"atio" undertakenby carrefour in the food markethas been into limited-line discountfood outlets.In Septemberl97g Carrefou,a"quired ;;;;;; cenl shareholdingin Erteco,a 'Archi-Bas'1 companytrading primariiy in trr" Firi, regionas Ertecohad beenformei in 19756v trr" n"a", group and SimonBertaud, the entrepreneurbehind ttre concept.itre interventionof carrefour sawa restructuringof the share r.u* ing Bertaudwith l0 per cent and Radar *ittr +s per cent."upitli A n"* .*- ecutivecommittee was also created, Carrefour u"a nuaai g""e;i; p;; ductranges were introduced into thestot"r, undthe compan!ttuai"-ur* waschanged to "Ed', (EpicerieDiscount: Discount droc"ry St"r+' physical The expansionof Ertecowas rapid, with the numberof stores risingfrom 18in 1979to 75 by the endof i9g2, but wasnot ,iirr"ri difficulty, largelyattributed to the-costs of operatingthe si;le sup;i; depotat Rungs(LSA 886,1983). The *adei lossor-zo *iirioi francson a turnover of 650 million "ompuryfrancsin rssz. rn an Jteffi;;; improvethe performanceof the chain,carrefour assumedthe manase- mentof the companyin Jury 1983and appoint"o u n.* *"."ir"g-ir]iE"- tor to control the operation. Despite these.problems,carrefour showedtheir faith in the conceptand futurepotential of Ertecoby acquiringRadar's shareholding ilb;r6;; 1983.carrefour decidedthat followingthe rapid growthoi trr"pii"* chainduring the early 1980s, the emphaiisstrouia biswit"rrJ t" *"r"e.- ment aspectsrather than further physicalexpansion. tn particuiar

66 | International Journal of Retailing 1,3 Lg I dnorC rnolarro) aqJ

'eJols eql Jo uolleJado pue eJuBIuJoJJadel{l JoJ ,(llpqlsuodssr e1e1d -ruoc seq reEeueruaJols eql pue arluec1t;ord e se peluredosI eJolsqt€g 'pesllBJluecepsI 'psroltuotu ,{ueduoc eql uollsJedo;o spadse Jeqlo lsoru u1 ,{1eso1cs1 'poslleJluet soJolsFnpl^1pul Jo acu?IuJoJ.Ied3q1 pue ,(g8q st IoJluoJ 'luauraEeueu pel Iercu"urJ qEnoqllv pasll€Jluocepgo ldecuoc eql ol -liruuoJ ,{1urg s1pue 's1e4reur:ed,{q luaudolarrap eqtru1 lsllutcads 3o 'sseJtns e sB lsorueJoJpuu IsJIJ 31as1tspreEer dnorE aq1 penulluot s,ruJIJeqtr qllA\ op 01 qrnru p€q o eq slcadseeseql 13I{1.ercqeq lueru -5auueruaql pue 'drolqq s,i(ueduroceql Jo sJeafSZ $rt; eq1lnoqEnorql pe l^rns a,req,(qdosollqd Euperado JnoJeJ$J aql Jo s13uo1ul€uac spedsy puopurodg

'(gg6t 'Oeg VS'D ,; "ueql uor; eEuEuesryflsrlsserEord 'loJluoc pue IIIII o1(sdeqrad puv elelduroce €q lou op e \ qtlqA\ esoql ;i'erlrrrpcepesgetcads uI pe^lo uI seruedurocu1 uopedlcpred rnoSulspr;o '€86I ul 'uolluelul ou e uq al[,, '€86I ur ,tarog;a6 sanbcel ,.tqpeurg jeJrfabrerls e 'uopecglsrerrrpuodn u"ql Jeqler selllÎlte la4reurrad,(q s1l uoon setJnosaleleJluacuot JnoJeJrBcernlnJ aql u1 leq1 slsaE III^\ 'suelqoJd -Ens sarnluarreseql ecuarradxoeql pesod e eq selJ€lpls Jo 'lueueEeu?Irr -qns Jaqlo 3ql NurtruoJuI u1r\osll qll/ll dnorE snourouolne s? 01 sonulluo, qctqm ',{uedruoc slql uI aJeqs sploq ,(l u? lJu 'sseJJns -ereu JnoJeJJe3'1e,rn paurogrod sutl eur?JolseJ qEnoq{V " peIJ" qll^\ letu sBqsJolsas Irclor J3qlo olul JnoJeJrsJJo uoll€JIJISJeÎpeql 'uoyleredo1a>guurredns eql olul 'S86I palurEelurJnoJ Joqlo oql pue plos Eupq selreleJ€teÎJ IIII^\ ul pasolcEuteq eJnlual slql otrpel strsocluorulse ul qEg uo surnler rood .,tp_uld 1nq 'ede;g trerptsqns lueJnelsal e peuJoJ JnoJeJJeC086I ul '286I - - godqq Jo pue sql le plos s3 \ sdoqsspoo8 slrods 3o ul€gJ e ul pourss pu" JnoJoJJ"C,{q pleq Eurploqaruqsluac red 49 e '286I 'ra1e1ree,( e posodstpu3q1 lnq ul lue3 red 79 01 pesler"(FuputS sBAl 3o 'ce[1eyq '6L61 ul psqsllq€lseuleqc eJlueJ ;czeeqe uI o{Bls luac rsd 91 V'ssoJcns pel1ug qllilr leru e eq srolcoslrcleJ lsllslJads olut seJnluel roqlo s.JnoJeJJBC'ocelJg qll/$ peJ4unocuesurelqord eql 01uolllppe uI .etull lsJrJeql ro; lgord Euperado1uecqruEls B opelu ,trelplsqnsooeug oql 'dnorE SgeI ut eql 5o [EelurN urel-Euo1eql Jo ired seuolleredo 3o ed,$ slql olul uopet.rJlsJeIp Jlaql ^\eIAJnoJeJJeC IBI{1 slseEEns suuld esol{lJo '(t86I '6V6 luoruecunouu€oql VST) serolsur pelrJ€c spoo8 3o eEuer eql asseJoulol puu 'ur bs ggg puu gst uee^\loqol 0Z€ uorJ serolsJo 'slcnpord 'uletlt ezrsoEerere eql esPl o1 ,,P11,,Jo eEuere qsllqelseol aql lnoqEnorql loJluoc {Jols pu€ ,(1ddnserrordtul ol lqEnos JnoJeJJBJ which mustmeet sales objectives established annually by the company. Eventhe Samodbuying subsidiary, created in 1967for the purchaseof "bazar" and textile goods,is not a buying centralein the traditional sensgbut actsmore as a selectionagency for thesetypes of goods,recom- mendingwhich lines should and shouldnot be adopted.The storedirec- tor is thenfree to decidewhich goods his or her storeshould carry on the basisof this advice,and is fully responsiblefor thesedecisions. The decentralisationof authority within the carrefour organisationis intendedto providescope for flexibility,allowing store managers to res- pond to local factorsand environmentalconditions. The group does not pursuea national price policy,allowing individual storesto react to local competitionand to takeadvantage of anyadditional discounts that they can obtain from suppliers.Denis Defforey regards the group asa "confederation"of individualstores operating within certaincom- mon denominators(2S.4 930, 1984b). Through this approachCarrefour aim to benefitfrom "the delegationof responsibilityand federationof effort". A further indicationof the decentralisednature of carrefour is the size of the headoffice staff, whichin 1973numbered only twelve- headed by the companyPresident, Marcel Fournier, and the two joint Directors- General,Jacques and Denis Defforey. The remaining nine personnel con- sistedof a financedirector, two counsellors(one responiible for inter- nal management,who establishedand monitoredsales objectives, and the other responsiblefor socialand administrativeaffairs), four super- visors,who eachco-ordinated personnel, supply, and short-term manige- ment problemsfor five to six stores,and two secretaries.All other operatingfunctions were contracted out to externalagencies (Toussaint, 1984). In 1978,Carrefour appeared to acceptthe limitationsplaced upon further expansionin Francethrough the openingof newstores, and decid- ed that future improvementsin the group'sperformance should be ryliey9! UVltredevelopment of storeoperation and management(ZS^4 668,1978). To realisethese improvements, Carrefour reorganised their seniormanagement structure, creating a Group Directoratiand an Ex- ecutiveDirectorate. The Group Directoratgconsisting of MarcelFournier and DenisDef- forey,assisted by a financedirector, a generalaffairs director and a marketingdirector, was to involveitself with short and medium-term issues(2S,4 666,1978). Whereas the l4-memberExecutive Directorate headedby JacquesDefforey and BernardFournier, and composedof sevenregional directors, three merchandisedirectors, an administra_ tion,/managementdirector, and a social affairs,/personneldirector,

68 | International Journal of Retaiting 1,3 69 | dnor) rnolarroJ aqJ

,(lEurprocceseJols sll uI palJr?c lueulrosse lcnpord oql palsnfp€ ser{pu€ 'pooJ qse{ uodn peceld slseqduraEutseercut eql dpelncpred 'spueruopJolunsuot EulSueqco1 puodser o1 rlcmb ueaq s"q JnoJeJr€J lenod Sudnq IIBJa^os,dno;E eq1 errordrul ol sldruelle ol uolllpp€ uI '(eVget '0t6 drqsreuged TBIIIUISe pocunouue VS'D '(7961 'JJDS aqtr'eprluac s

-9

A-A-A Grocery

fffff| Freshproduce

Hard goods

76 77

As DenisDefforey remarked in the company's1984 report, ,,In 25 years consumershave changed. All of us in Carrefourare conscious of this, weadapt ourselves, we innovate, we progress3' One result of the careful monitoringof consumerbehaviour and the operationalresponsg has beena steadyrise in the proportion of the group'ssales accounted for by freshproduce since 1970, as Figure4 shows.Similarly, distribution costsare constantlyunder reviewat the family of goods,and evenin- dividualgoods, levels. Reflecting the successof someof theseadapta- tions in operatingpolicy, space productivity throughout the grouphas risen consistentlyfrom 19.4francs,/sq m in 1974to 55.5francs,/sq m in 1985(Figure 5). The carefulattention paid by Carrefourto changingmarket conditions is further reflectedin the hypermarketopened at Etampesin August 1983(The Grocer,1983). This storewas deliberately adapted to suit the economicrecession of the early 1980s.The storedesign was kept sim- plg with no falseceilings or automaticenergy control installation, and few decorativeelements. Operating costs were kept down by simpleand functional fixtures and a basic presentationof merchandisewith

70 | International Journal of Retailing 1,3 LL I dnorg rnolarnC aLlJ

JBlncBlcedss€^r aEuBrI€uIEIJo aql q spooE 0s aql Jo p?dtm l"Ilrul 3qI 'papedxeuuql Jelloq peuroJJedeEueJ aqtr puB 'JnoJeJrBCJoJ dnoc 'ecuetg Eurle>1reurpue ,{lrcnqndluelrodurt u" eq ol porrord u1rolerado 'lueudoleâp 'spnpord e ,{q puq sll IsJIJ el{l slq-1, le4rerureddq Jo '9L61 go eEuer ..seJql'IsllnpoJd,, JIeI{lJo qcunzl oql qlll\ ul Euyplar r{rueJdur srol€ôuurEulpeel eql Jo euo eq o1 pe,rorduwEe :no;erre3 'JJels rreql go ,,/{.11nt1eercpue ecueE11e1u1,,aql tuoJJ llJeuoq 01 JnoJeJJ€C elq"ue otr pacnporlul ueoq oslB aireqsdnorE,fiprlllFdtuoc puB selcJIJ,$pn| 'strcBJluocpu€ suoplpuoc 'uolluerruoc Sur4rorrt A\erAeJ uE pue ,sea,{oldureppuelq 3 aJ€ Jo l?nuu€ ',,eJnlnJ dnorE eq1,(q peonporlur suolle ouul eql $Euotuy s,fuedtuoc eql seeluerunS1l esnecequrecuot Eupuzls e s1Euurcr1,, rnoJerr?J o1 s? 'lorfed 'lueruerrnberp8al eql ecrmldpeeu eql Jo luot red 7 se,lrleEpnq Eururcrl,(ueduroc eq1 u1 aururerEordEuluterl pue suop"leJ JJ€ls t86I 'luetuaEeuetu rreql uodn se oppd rno;err"C pu" leuuosredo1 lesrueql 'uolllppB -uI pellouu€qcuoeq a^Bq saunoseJ pu€ trJoJJeelqBJeplsuoc uI sel€soJols o1 lueulredap srrll acuelrodurlpos€aJtul eql lrralû1 'luarulredep pooJ qso{ oqtr Jo Jo 's.(eldstp sen qceorddBlsoJ-A\ol su{l ol uogldacxe,(po eqa plcads ou JeoA

08 6L

gg-VL61",(ll^$anpord acudg :rno;euuJ 'S eln8lg (LSA 580,1976), and in the first ten daysof salesthey accountedfor 12per cent of the turnoverachieved by all the goodsin their specific ranges,and 3.5per centof total storeturnover. By the end of the first year(LSA 626,1977), the "ProduitsLibres" rangeaccounted for 4 per cent of total turnover,and 40 per cent of all salesin their respective productranges. From this successfulstart encompassing grocery, drug, andperfume lines, the rangewas extended to 200products by April 1978. Thesuccess of the l'ProduitsLibres" range prompted most of Carrefour's. competitorsto launchtheir own genericand own-brandlines, a situa- tion which pleasedDenis Defforey, "It is alwaysgood to be imitated, becausewhen one of your competitorsimitates you, he doesnot in- novatel'(LSA 666, 1978). The successful"Produits Libres" range was followed in the autumnand winterof 1982by the low-keylaunch of an own-brandtextile range under the "Tex" label.In line with Carrefour'spolicy of decentralisedmanage- mentand storeautonomy not all storeswere obliged to stockthe rangq althoughall but one hypermarketdid. Despitethe limited successof the "Tex" rangeit wasextended by the addition of a further 15 lines in the springof 1983,and a householdtextile range in 1984.Overseas, in Brazil,a rangeof householdlinen productswas launched under the "Bonjour" nametowards the end of 1983,followed by a rangeof ,,Ex- tra Plus" sportswearlines in September1985, whilst in Spain,i ,,prycd, own-brandrange was introduced in May 1985. The most recentdevelopment in the own-brandstrategy of Carrefour has seenthe launch of a rangeof 40 goods under the ,,Carrefour', tradename.The intentionis to replacethe "ProduitsLibres" range with the "Carrefour" ow[label overthe nextthree years (Distribution dAu- jourd'hui, 1985).To reinforcethe qualityimage of the Carrefourbrand, early in 1986the companylaunched a seriesof ,,produitsconcert6s,' which wereonly to be stockedif consumersapproved the range.If any product failed to be approvedby lessthan 80 per cent of consumers it wasto be removedfrom the group'sstores. In March 1986,Secodip interviewed66,000 consumers and tested87 ofthese products, only one of which failed to reachthe requiredstandard. Those goods thaf were approvedhad a red triangleadded to their packagingto representcol- laborationbetween Carrefour, suppliers and consumers (LSA 1014,19g6; LSA 102r, 1986). Carrefourhas also addedfinancial servicesto its retail operation.In 1981an in-storecredit card, the "Carte pass",was introduced in a six- storepilot. By the end of 1982,20000 cards were in useand the card accountedfor between6 and7 per centof sales(LSA 930,1984b). In 1983the "Carte Pass" was extendedto 40 stores,and was usedby

72 | International Journal of Retoiling 1,3 eL I dnorgnota oJ aqJ

'suorloruoJd 'secud uo uortr"ruJoJur ernlnypue luaJJncJo slle1ap lueunc apr,rordpue pelepdn are ura1s,{sslql uo Bl"p eql 'el}eue11" eJols Jreql aspJo^pe"{Iepo1 uals,{s uop"ruJoJul oql uo saEedgg5 eql Jo 0g ue)l?l o eq JnoJeJJe3pue 'uo6ar aql lnoqEno;ql pel€lsut uaeqercq spulrurel 'uolEar Iellulhtr prresnoqlrnog auSqrduro3eql q lueruFedxa1e11ur4 e ro; e porrrocolroleu eql sepap" seqdnorE oq1 'pegodar seq (t86I 'Ll6pue 'soppllc" Vg6I'ZV6)USZ sV puotlouord pue Eulsltrarrp"q1F\ peurec -uoc serEolouqJel1(eu o1 e,rpdecer eJolu ueaq e Bq tnoJorr€] teê \oH 'slroûeu sJJg u^\o Jr3ql aleEglse,rur01 sl€rJl Ieuorluu ruo{ ulreJpqll^\ e^Bqalerluet toplJed eqtr pu€ oursBJ 'ueqcny qlpr Euole dnorE aq; '(yg61 'ncotC aqJ) rl3ltq- oo1,{11uerrnc eJ€ suollc?su?rl JoJ seEreqc i3q1 aJuerd uI sJellelar {u"q 'sruols,(s ,(recorEe8rel Euouregsqaq preueS eq1Euueqs SIdg Jo uoll -Jnporlur eqtrEuruJeruor suol1u reseJpesserdxa a^Bq JnoJsupC 'dlJeUuIIS 'Oget'tZOt yg7) ,tuesseceulou sr,ffio1ouqce1uolletuJoJur qcns lueserd 'e;o1s le leql eê1eqlueueEeuuur 1nq srollllâuusD eql 1€ popnpuoc ueaqJaê^{oq e €q slso.1'popno;d ll l€ql sllJeueqaql JoJezrlsuadxe oo1 'acuerg sen ^{3o1ouqceleql lqEnoql deql aunl eql trBsB ul ,{Eolouqcel SOdg Jo sreeuordeqt Euoue eq o1 ^{1a4lunsen dnor8 oql r"qt g16l ur pepilupe JnoJeJJBCi(Eoyouqcal ^\eu Jo uopdope aql o1preEar q1116 '(sse 'xleqaa) ',{ueduroc r {cnqao1 sJ€eSJo ,{replsqns e oJu€JnsulselelsfiV eql q1p\ suorlerloEeuEulreq uaeqe Bq JnoJeJruJleql lsaSEnssJnoulnJ 'pe,,{e1ap pue aq ilI,!\ ecr^resslql Jo uolsuedxe JeqUnJleql pecunou -u? seq ,(lr,r,rtrceslql IoJluoJ 01 peruroJsB^\ qJlqi!\ (JnoJerJBJsgrnssv sep lueurednoJD)JVD trerprsqns peuA\oluec red 94 eqtrlueserd ly 'Eulluroddeqp 'uotlelouul ueeqseq eJu?ruroJred11ure,lo s1r slql Jo sseJ 'seJols -cnslerlrul aqt atldsepterc.no11 esoqluI elqBIIB€ ep€rueq plno^\ se1c11odecu?rnsur euoq l€ql pacunouues€^\ lr S8611sn8ny ur pu€ - ,(11ncg1B tueqtr Jo 00L'I - serolslrl3lo qEnoJql sarclod ecu€JnsurJec '9961 00L'€ plos p€q rnoJarre3 tue,{ tsrrJoqt Jo pue eql ^g Eurrnpeere sadly-augqA aql ul sp{r€urred,{q Jeqtro01 pepuexa Euraqecyrras aq1 'sqluou 'lueurrradxe 01 pel a^lJ lsrJ eql w plos slc"rluoJ 000'I qll^\ 'ocueJnsur srqtrJo ssoccnserll Jet IIeso1 ueEeq pryeurrad,(q ,(ilncg sql ueq^\?86I uI pepuelxeJoqilnJ sBlr\ seJIAJes IBIoU€uIJ Jo uolpnpoJlul sql 'slno{ceqc eJols le sleurruJelluau,(€d ecnporlur o1 pue 'uor1 -eredo snoruouolneuB s€ dds dololep 01sr uollualur aql arnlnJ eql uI ads ul er€qslual red 97 e {oo1 puu uorleradopJ€c lrpeJc eqtr q pa^lo^ 'ualolaC '(gget -ur orueJoq lauged A\eu€ 986I Euunq tln) S86I ul scuerJuolilrtu 6'5I Jo xe1JeUe lgord 1eue peaoqsqcqm (sse4sluauered sep 919rcog)449 ,{reprsqns e qEnorql peleredo sI pr€c ..ss€d,,eql 'sprec 'S86I ..ssed,,ploq sreuolsnt 000(L7Z dq pu" sJeuolsnJ000'€tI the activitiesof the commercialcentre, and detailsof the servicesof- feredby the Carrefourstore. The costof this systemfor the consumer is that of a phonecall, as a specialnumber provides access. Following the successof this pilot scheme,Carrefour are planning to equiptheir remainingstores with this facility as soonas the expansionof Minitel allows. The imageof Carrefouras the leadinginnovator in Frenchretailing is one of which Carrefourare understandably proud, and the group has takensteps to preservethis reputation.In 1984the group'sadvertising expenditureamounted to 90 million francs,compared to 63 million in 1983.As TV advertisingby retailersis prohibitedin France,Carrefour hastaken advantage of othermethods, one element of whichis the mon- thly CarrefourJournol producedfor eachof its stores.This eight-page news-sheet,which accounts for around20 per centofthe group'sadver- tisingexpenditure, is deliveredfree to approximately560,000 households (LSA 940, t984). Carrefourhave made efforts to reducethe role of promotionsin their advertisingstrategy, believing that too manyof theseactivities can pro- vedetrimental (LSA 685,1978). Instead emphasis has been placed upon more sophisticatedpromotional strategies and in particularupon the constructionof a Carrefourimage which stresses the qualitativeaspects of the organisation(Clauteaux, l98l). However,price competition still remainsa centralelement of the group'soperating philosophy. In the annualsurvey of retail pricesconducted by the Consumers'Associa- tion and publishedin QueChoisir? Carrefour was recognised as offer- ing the cheapestprices in Francein the 1984and 1985reviews. Discountinghas been central to the group'soperating strategy in Latin America,and in Franceit is in relationto this aspectthat Carrefour's advertisingstrategy has been at its mostinnovative. In 1979,Carrefour first tangledwith the thorny issueof the legalityof comparativeadvertising, whenthe group launchedan 'tconomic indicator" to reinforce thediscount element of the Carrefouroperation (LSA 701,1979). This index wasderived from the price of a shoppingbasket of 200 brand nameproducts, chosen each month by the Ifop-Elmaragency (without prior consultationwith Carrefour)from goodsfeatured on the Insee consumerprice index. The costof this shoppingbasket in the Carrefour storewas then comparedwith the costof the samegoods in the stores of the group'sfour main competitorsin the regionin question,and the resultswere published locally. The issueof comparativeadvertising was again to involveCarrefour in late 1983.On 2l November,the Carrefour hypermarketat Chartres publisheda double-pageadvert in LEcho Rdpublicaincomparing the

74 | International Journal of Retailing 1,3 gL I dnotg rnofarrrD aqJ ur (onbrJlluercs onbrurloel acu"lsrssv) SIV eql ,{q pelcnpuoJ slsel ,{roleroqul;o sllnseJerll popeôJatuuerEo.td il\eu sIqI ,(lqenb astseqd -tuo 01 dnorE aq1Jo ,(Eelerlsural-Euo1 II?Jo o eql go ped s€ uses eq '(Vget 'SZA 'rZ6 uec luetudoleôpspIJ ir86l VSi ,g6l ut ,(gue u8rcd -uec ,(1gunbezrlleredruoc JellruF € peqoun"l JnoJerreC'uErcdurec Eu1 -spJa^pearrpereduoc aqt,{q pamlqce dnoc ,(1tclqnd InJssocJnseql uo 'eEeur esqulldeco1 pue s.dnorSeql Jo slceds€orrpellpnb aqt aqseqdua 's{cots 'ls1elJodsll1nur oJ 1I t€ql eEu€rpnpord qtea q Sutslplceds u sr 1l leql stuplc rnoJarre3 tEelerls 8uperedo JnoJeJJBJal{l Jo luotu 'secyd -e1eluelrodurr ue sr z(111enb lunoJslp Jo eloJ el{l ol uoll1ppe uJ '(y961 'ra6eg) '(uossaluo6 unoc 01 JnoJorreC{ool cJslJe'I pue re) 'sea; qtrnoIIIIu€I 'ueqcny'(seErnog 1e)pnelry se pEel ut sJu€rJuolIIIIu l '(ruOt 'St6 rnoJ rnoJerreClsoc eêq 01 tqEnoql s1uEruduec aqt ils q 797) peuracuocsarged aql go plordde rotrd trnoqq^\sotuBu pueJq pu€ sau?uep?JlJoqlo Jo 3sn eql pelua,rardqcq^\ opoJ lBusd 3I{1Jo zzv elcrlJs 01 paJreJarsJaqlo lslq/r\ '..Jorreue ecnpul o1 d1o111q qcqll\ Jo 'sluoruelelsesl"J se{Btuqclql\ IUJoJ^{ue;o Eulstltelpe,, ep€qJoJtlolqir\ ro^{oaro1 erp aIJIUBpeue^BJluoc eroJeJoql pu€ Eupeelslur ,{1pt1 Jo V, 'sJelIEleJ -ualod selr uErcdureJeql l€qtrpenEru sluauoddo eruos Jeqlo 'rrre1 pu€ JnoJeJJ€Clsup8€ trqEnorqoJalrr sllns^\Bl Jo salJasu puu eql Jo €eJB,{arEe uodn peqcsoJcueuSmdurec Eulsllre,rpe errtleruduoc eq1 '(€g6I 'sftag) ..uolsnllrJo speorssorc eql,, pocunoueppue ..Jelleqseop cralco-I ppnopg,, qlpl popuodsaroq1( cJolce-lpue ,,Eu1crrdarrllereduoc struour JnoJerrBJ,,ueEols aql qll^\ JnoJoJJ€3uooA\leq pansuo epleq ,{lrcqqnd rofetu e puu 'uEpdur€J oql suolsJa u^\o Jlar{l Eurcnpord 'p"ol JnoJeJrBCaql mo11ogo1 ue8eq Jo 's1e^F 'dnoc sdnorEraqto rraqtrJo qrEeqc eql ol ,{1rc11qndrofeur e 3go Eulpd ur pepeocJnspeq JnoJeJ&3urcEe ecug 'i(11enbuodn srseqdura eql q1!$ qceo;dde Sullolreur ralJosu spre.t\olSunoru uoeqpeq JnoJeJ -JBJ s€ 'eper1peler eql o1asrrdrns alalduroc € sBetuec uEteduec srqa 'u^\o Jroql go 1s11ecud e,rrluredurocu pocnpord o^(1eApue 'uollersdo sFIl uorldecepsql pu€ 'ralceruqcpepls-euo eql Surcunou Jo 'a,(1ua '9qc -ep sse;dImol eql ur sluetuelelspoqsllqnd osp qtrpt Euop -reruJoluJisoJols ?rloJ€ruralul eql ur secudeu?s eql lE plosoJueql eJa/h qclrltlr'spe pB eql q poJnl€eJspooE aq1 asuqcrnd o1 le4reuredfq JnoJeJ -J€J eqtro1 see.l(oldue rteql Eulpuas,(qpepuodser seJotrs gqcJeuretruJ o^\1 eq; 's.rolpedtuocruor; uorlJ€er snorrnJpalduord dnoc,(ltcgqnd sgl 'u,/doleql ur sesnquo perJJecoJsA{ suo^p€ pue putnor mofat '(€86I -./rJ s.arotsor{t Jo uoll1poyulceds e dq pegoddns se^4.tra^pu sHI 'Z16 VS7) serlreq3-,{erpnoJpu" srarllrûretrAlte seJols?I{cJ€rureluJ pug 'acn1 '€eJB '1ues1n1lB oJelce.l 1u1a>gerured,(q e,(1eA e el{l ut srolrled -ruoc roleu JnoJslr Jo esoqtrqlll\ s?utl lcnpord 0SI raô sacud sprols Marseilleon own-brandwashing powders and washing-upliquids pro- ducedby the majorretailers. Future plans involved similar tests for sham- poos, coffee,oils, chocolatgand fresh produce.

Summary Overthe past25 yearsthe Carrefourgroup hasdeveloped into one of the leadingfood retailersin Europe.This position has beenachieved throughthe exploitationof onetype of retail outlet, the hypermarket. Attemptsto diversifyinto other specialistretail markets and to develop other typesof outlet haveproved problematical, and with the excep- tion of the Ertecochain, further investment in diversificationis thought to be unlikely.Spatial expansion, both in Franceand overseas,has been basedupon a strategyof initial developmentthrough joint subsidiary companiesin conjunctionwith local or regionalretailers, followed by the acquisitionof thesestores or the joint venturesthemselves. After searchingfor developmentopportunities in mostEuropean markets during the early 1970s,the internationalstrategy of Carrefourhas focused uponthe Spanishand Latin Americanmarkets, although future development may well involveexpansion in the USA. Within Francethe companyhas remaineda leadinginnovator in the food sector.Store layout and product assortmenthave been adapted to changingconsumer needs, Carrefour has introduced "no name"pro- ductsto the Frenchmarket and financialservices to its stores,and the companyhas shownoriginality in its promotionalactivities. The cor- nerstoneof the company'soperating philosophy has beenthe decentralisationof management,and developmentof personnel,in support of the corporateethic of the Carrefourgroup: "Carrefour'sfuture, in- dependenceand steadygrowth are basedupon people.Every person, everyday, endeavours to bring a moreharmonious response to the multi- ple expectationsof the Company'spartnersl' This approachto management appearsto haveserved Carrefour well during the first 25 years of the company'sexistence.

References Bataillg R., (1978),"Jacques Defforey: 'Je ne suisplus un cow-boy!'" Pointsde Vente, 177a,I October,pp. 59-63. Beaujeu-Garnier,J. and Bouvert-Gauer,M., 0979), "Retail Planning in France",in Davies,R.L. (Ed.), Retail Planning in the EuropeanCommunity, SaxonHousq Farnborough. Betts,P., (1983), "Discount war hots up inFranc€',Financial Times, S December, p. 10. Burt, S.L., (1984),"Hypermarkets in France- has the Loi Royerhad any effect?" Retail and Distribution Management,January/February, pp. 16-19. Burt, S.L.,(1985), "The Ini Royerand HypermarketDevelopment in France- a study of public policy towardsretailing", unpublished PhD thesis,University of Stirling.

76 | International Journal of Retailing 1,3 LL I dnorg nolarnC aLU

'91-nl 'dd 'qcre6 '926 '..fllnrlJJ1p 'OSe1)'VSl 9I e1anof rnoJorreCse Bdurors?t5?nd,, '61 'd 'qcre6 'OB6ID'VST 6'tr76',,glJpr[) ep suosr€r?duocsol enof rnoJorrBC,, '90I 'd 'ZZ6 ',,oh}OI 6(t86I) 'b.SZ i(J"nrqed VT, ? epu€ts tuarêpot"creruorna,, 'SI 'd ',{renrqeg '026 '.pcroJuer 'O86D 'VST 0I as sleqJesep uollertueruoo e'I., '8I-€I 'dd trenrqeg '$gel) 'VSl g'616'.p1I3"{ ?qrr"ru un suep lueruroJradednor8 un '92 'd ',{r?nu8f"ru"rols"C,, '916'..(slrnpord 9 sep '(?g6I) 'HS? no xFd sep) eartemduroc?lrcrlqnd el ep .llorp, ol luEntltsuoJsorxeJ,, '9-tS 'dd 'reqtuecaq 'Z16'.$?reduJoc 'Gg61) 'VS7 Z xJ;d se1:saru?qC rnoJerre3 eirllereduoc ?rlcllqnd,, 'I€-82 'dd .deIN '.,e1srlurc9dsq1nur '(t86D 'ZST 0Z'068 np a8eurr.lle sue,{oulsal ratroJuer rnoJerr"J,, '81-tl 'dd 'llfiV '988 6..uoyegil '(986I) 'ZSZ ZZ e1ep sdurelel :p4,, '9I-€I 'dd 'LrJdV '6€8'..suyse8eur 'QSelD'VSl Z selle sl?qc€sel resll"uoF.er :euEedsg :moJerr?C,, '0I-S0I 'dd 'fultl 'tSt ',.s?ccns '(036I) 'HSI 6 np suoslersel :rnoJerr?C,, '9I-9I 'dd 'drenrqed 'I0, ',.eJuejrncuoc 'GL6D 'VST 9I ?l scuelorJnoJarr?C .soFuouoc? sap etlpul;I ,, 'L-95 'dd 'reqolco 'S89 ',plul€r '(8L6D 'VS'f tI n? rnoler :rnoJerrEJ,, 'l-St 'dd ',{€f,lg '899 '.pcuesslolt enuuuot Inb olFp€ un rnoJerreS,,'(SrcD 'VSl 'lZ- 'dd 'UrdV '999 "s Ll IZ ,,iaruessrorcep rnele spruefanb snyd :nogatrc),,'(8L60'VS7 '61-9I 'dd 'f,elll.l 'gzg ',p:€uogeulllnul '(tt'ID 'VSl 0Z uolsuedxetnoJarr?J,, 'z-02'dd 'UrdV '0gg ',.rnlnJ 'VST 9 np alle^nouuorlecol luesgrdne allssn.errnoJerreJ,,'OL6D 'ZL-99 'dd teqotco g '90S ',,leJileurtuor eusFeqrn.p saplueurgedgpsuo.rssnuruoJ sep uolllsodurol esneFpue)S,,'@telD 'VSl (vsT) s4llDnpv a!^ras ,arqlI 'ggg 'atuaA '.(ssBd '(S8ODLLU ./(nn bunl 1 ap swlod eu?C el rns tlr?qruerrnoJarftC,, "C 'I-09 'dd ittnf 0Z '4aall Suua4rDW',pru"rd ur rea etud e ueEaqrnoJerreJ ,t\oH,, '(t86I) ''g :03"H 'p'd 'llrdv '(tg61) 8Z'.,spurruralSJ,{A ,sIueq Enldunsrelr"leJ qcuard eroIAL, ,arotg aUJ '7y 'd '(€g6lD laquraroN 9Z'.ptuerd,, tarorD aqJ '9I-gI 'dd 'llrdv '(LL6l 6Z'g79'spryon\cynr^ns atqlT',p$z?rg rnoJerr?J,, "q,:esreqrsqoro 'uopuol 'reluld 'nuoq '(pg)'Da '.{ureC slcu"rd m $aptd puo stuawaôw lopos ul '..uollellrruorarol lloôr uorJ :urslp"lnod-oeupue ayelnoa,, '(Z36I) ''U 'lle1ltlEg zr ,,..raôdro-r, erluor errena ue ged :no;erre3 'o ofli;l:1i|i:S:T\'!["" '9-9 'dd '.,te111 'Gg6D'lnLLgno[nv.p.uo!fiqlqsr.J ..iurJ apluarueruauuoc al :sanbF?ug8strlnpord,, "l 'I8 'o 'qcr"I I lz 'g6L's?tlpnpvar!^ras atq!1 ',.lnoq ne,nbsnf e8eurr,l :noga.r:eJ,, '(1860 ''d 'xn?etnelC '08-8t 'GL6i'Iaail 'dd lequreceq9I '.,Sneqr sofa ralunorslpradns B :rnoJerr?J,, ssau8ng LSA, (1984),"Contact: Socadipet ParidoC',926,23 March, pp. 20-l' LSA, (lgSaa\, "Encore un accord entre grandescentrales SGCC (Coop) et DiFra"' 930, 20 April, p. 15. LSA, (lg84b\, "Carrefour, une conf6d6ration",930' 20 April' pp. 18-19' LSA, (1984'),"Carrefour 1983un outil de plus en plus performant'1940' 29 June' pp. 75-8. LSA, (1984),"Carrefour premier journal t6l6matiqttd',942' 13 July' p' 15' LSA, (lgS4), "k journal t6l€matiquede Carrefour", 947, 28 Septemberp' 9' LSA, (1984),"Ed: deuxibmeg6n6ration du discount", 949, 12 October,pp' 76-7' 2S,4, (1985),"Oui, lAmdrique du Nord nous intdresse!"968, 8 February,pp' 10-16' 'concert6s' 2S,4, 0986), "Carrefour lanceles produits ", l0l4,2l February,pp' 13-14' LSA, (1936\,"Carrefour et lesproduits concert6s: 86 reussites,I recald',l02l' 11April' p. 12. LSA, (1986),"Carrefour, 69 entreprisesdu 3e Tvpe', 1027,23 Mav' pp' 12-16' Rebeix,F-C., (1986),"Produits d'assurance:une diversificationmultirisques", Points de Vente,298,15 March, PP.64-79. Rochard,E. and Peretig O., 0981), "Grandessurfaces: sept ans de combines",Iz Matin, 20 November,pp. 18-21. Toussaint,J.C., (1984),Ia Politique Gdndratede lEntreprise - Un Cas Concret: Car- refour, Chotard et Associ6sEditeurs, Paris.

78 | International Journal of Retailing 1,3