The distributor wants to return to the origins of the hyper format, with a smaller and more accessible offer. He also plans to launch a new brand, imported from Brazil.
At Carrefour, the future looks like a return to the 1960s. Determined to offer, as part of its new strategic plan, ” an anti-inflation and anti-climate crisis shield to the French, the distributor is preparing to thoroughly review the offer of its hypermarkets. In the eyes of Alexandre Bompard, the CEO of Carrefour, this format in difficulty remains, in spite of the losses of market shares wiped out these last years, the first “bulwark against inflation, provided that it fully assumes its popular vocation and its role as the first discount format”.
To do this, the distributor returns to the origins of the hypermarket. In 1963, Carrefour itself opened the first of its kind, in Sainte-Geneviève-des-Bois (Essonne). Since then, this format has gradually moved away from its initial model, which was extremely effective, regrets Alexandre Bompard. A plethoric offer has developed there, which affects its readability while generating storage and supply costs. “monstrous”.
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Carrefour will remedy these evils by deploying in all the group’s hypermarkets a method imported from Latin America. It has proven itself for a year in several French hypermarkets. ” Maxi is above all a new hypermarket management, more productive, with mass purchases, simpler shelving, with more pallets, more ready-to-sell, and processes optimized by data “explains the CEO. On the client side, it is a“hypermarket that goes straight to the point”. The number of references will be reduced by 20% in the food sections, and by 40% in the case of non-food items. The first prize products will be highlighted and presented at the entrance to the store. Large packaging will be offered for large families. In the non-food section, Carrefour is inspired by the codes of discounters that are a hit, Action in mind. In recent months, Alexandre Bompard has not hesitated to go for a walk himself to pick up ideas. In the future, Carrefour will offer products at less than 1 euro, destocking and a seasonal offer “well targeted”. “Non-food must once again become a means of attracting new customers », says the CEO.
Compete with discounters Lidl and Aldi
Carrefour’s anti-crisis arsenal is not limited to the walls of the hypermarket. In all its stores, the distributor will push its own brand. From a third of sales today (a quarter in 2018), Carrefour, Reflets de France, Terre d’Italia or Simpl products will represent 40% of turnover in 2026. The inflationary context will contribute to this. On the market as a whole, sales of private label products, on average 24% less expensive than all products sold in supermarkets, are growing.“Our customers want to be protected from inflation, but they also want to eat healthy and responsible », explains Alexandre Bompard. Private label is one answer to this equation.
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For brands, it is also a clever way to compete with German discounters Lidlet Aldi, which are constantly gaining market share. The Simpl entry-level range is on average 5% cheaper than the products sold at these two discounters. A future “anti-inflation” button, soon to be available on Carrefour’s e-commerce site, will also contribute to the growth of the own brand: the distributor will not hesitate to offer its customers less expensive alternatives to the products they have already put in their basket. These will often be own brand products.
To compete with the two Germans, whose model is extremely efficient, Carrefour finally wants to establish the first portfolio of discount stores“. Alongside the hypermarkets, the Supeco brand will continue to grow, particularly in Spain. In 2026, the distributor should have 200, or 80 more than today.
The Atacadão “bet”
It will finally import its discount format from Brazil” the most powerful “,Atacadao. Carrefour will have 470 in 2026 in Latin America (270 today). The products are presented on pallets and purchased by customers, half individuals, half small professionals, in very large quantities. Prices there vary according to inflation, both upwards and downwards. They are on average 15% cheaper than in hypermarkets. The low number of references makes it possible to display low prices without sacrificing profitability. A first store will open in Île-de-France in the fall of 2023.It is a bet that we owe to our customers, because it is probably the best anti-crisis solution“says Alexandre Bompard.
To finance these developments, as well as the transformation of hypermarkets, the group will have to save another 4 billion euros by 2026. Job cuts are expected at Carrefour headquarters in the various European countries where the distributor is here.