An overview of the key account management and selling process involved in dealing with a global hypermarket chain using Carrefour U.A.E as an example.

1. Managing Carrefour – Understanding the hypermarket retail business

2. Magesh Srinivasan

3. Contents
Objective Promotion Calendar
Hypermarket Definition Commercial Terms
Carrefour Global
C f Gl b l In St
I Store Promotion
P ti
Carrefour UAE POS
Carrefour Store Sizes After Sales Service
Store Layout Listing Structure
Business Model Back End Rebate
Sales Split Conclusion
Magesh Srinivasan

4. Objective
Objecti e
Provide an overview on hypermarket retail
business with Carrefour as an example
Magesh Srinivasan

5. Hypermarket
H permarket Defined
Hypermarket = Supermkt + Dept.
Store
1931,Concept from US
2007 sales = 72 Billion Euro
Source: Middle East Grocer, June 2006
Magesh Srinivasan

6. Carrefour
Carrefo r Global
1,163 Hypermarkets
14,991 stores (including
franchisees & partners)
Source: Middle East Grocer, June 2006
Magesh Srinivasan

7. Carrefour
Carrefo r Global
Franchisee-partner countries
Europe Total No. of Franchisees 1. Algeria
Al i 1
2. Saudi Arabia 7
1. France 218 24 3. French overseas
2. Belgium 56
3. Spain 161 6
departments & territories 11
4. Greece and Cyprus 28 4. Egypt 3
5. Italy
l 59 1 5. United Arab Emirates 10
6. Poland 72
6. Japan 7
7. Romania 11
8. Turkey 19 7. Jordan 1
Total Europe 624 31 8. Kuwait 1
9. Oman 1
10. Qatar 2
11. Dominican Republic 1
Asia Total 12. Tunisia 1
1. China 112
America Total 2. Indonesia 37 Total 46
3. Malaysia
y 12
1.Argentina 59 4. Singapore 2
2.Brazil 150 5. Taiwan 48
6. Thailand 27
3.Colombia 46
Total America 255 Total Asia 238
Magesh Srinivasan

8. 2007 Gro p B siness Res lts
Group Business Results
Magesh Srinivasan

9. 2007 Gro p B siness Res lts
Group Business Results
Magesh Srinivasan

10. Carrefour
Carrefo r in UAE - Profile
Start 1995 – Deira City Centre, Dubai
Local Partner : MAF Hypermarket LLC
10 Stores
Headoffice : MAF Towers, Dubai
Magesh Srinivasan

11. Locations
MAF Carrefour plans to more than double the
number of stores in the Middle East region by
2012. The company already employs over 2,500
staff in 30 stores in 11 countries in the Middle
East region and serves 10 million shoppers.
g pp
Source: http://www.ameinfo.com/172112.html
Magesh Srinivasan

12. Store Si es
Sizes
Magesh Srinivasan

13. Sections
Magesh Srinivasan

14. Store La o t
Layout
Electronic Goods: Television, hi-fi sound equipment, Computers and office
, q p , p
automation, Photographic equipment
Household Goods Section: Luggage house ware, Library house equipment
Luggage, ware
Light Household Section: Stationery, sports goods, toys, Gardening, Camping,
car accessories, appliance, Telephone, music
Consumer Good Section: Cleaning products, toiletries, cold beverages, biscuits,
confectionery, general groceries
Accessories Section: Jewellery, watches, mobile,
Textile Section: Kids, children, men, women, home linen, accessories, footwear
Magesh Srinivasan

15. Store La o t
Layout
Frozen foods Section:
– Fi h Widest range, Freshest quality, l
Fish: Wid t F h t lit local and i
l d imported f
t d from gulf and
lf d
abroad
– Meats: Widest range, freshest quality, local and imported from gulf and
abroad
– Cheese: Local and imported
Fresh Foods Section:
– Vegetables: Widest range, Freshest quality, local and imported from gulf
and abroad
– Bakery: Freshly baked cakes, croissants, French rolls, doughnuts, hot
takeaway foods, ready made shawarmas.
– C
Consumer goods: imported f foods, dairy products, ice creams
Magesh Srinivasan

16. Contents
Objective Promotion Calendar
Hypermarket Definition Commercial Terms
Carrefour Global
C f Gl b l In St
I Store Promotion
P ti
Carrefour UAE POS
Carrefour Store Sizes After Sales Service
Store Layout Listing Structure
Business Model Back End Rebate
Sales Split Conclusion
Magesh Srinivasan

17. Business
B siness Model
Magesh Srinivasan

18. Sales Split
Magesh Srinivasan

19. Promotion Calendar
Going Going
Summer
DSF DSF Home Home
Offers
Promo Promo
P
Going Back
X’mas
X’
Home To Ramadan Ramadan
& New Year
Promo School
Magesh Srinivasan

20. Commercial Terms
Commercial Business Contract
Annual Rebate Program
Payment terms
Warranty & After Sales Service
Magesh Srinivasan

21. Contents
Objective Promotion Calendar
Hypermarket Definition Commercial Terms
Carrefour Global
C f Gl b l In St
I Store Promotion
P ti
Carrefour UAE POS
Carrefour Store Sizes After Sales Service
Store Layout Listing Structure
Business Model Back End Rebate
Sales Split Conclusion
Magesh Srinivasan

22. In store promotion
End-Cap or Gondola
Prominent display
Special offer
Fees for 8-10 days
Magesh Srinivasan

23. POS
Restricted usage
Promotion based
Short term
Magesh Srinivasan

24. After Sales Service
Ser ice
Customer Service Counter
Replacement Policy
Repair Return
Magesh Srinivasan

25. Display
Displa Goods
FOC display goods
Replace if damaged
Magesh Srinivasan

26. Listing Str ct re
Structure
HO
M ‘A’
M ‘B’
M ‘C’
I/O
Magesh Srinivasan

27. Back End Rebates
Based on sell-out
% of sell-out
Value per unit sell-out
FOC goods
Magesh Srinivasan

28. Conclusion
Concl sion
Proactive/Systematic approach
Relationship with ‘buyer’ is key
p y y
– Listing
– National Promotions
– Leaflet entry
Sales analysis based discussions
y
Dynamic business
Competition trends
Magesh Srinivasan