EXCLUSIVEBRANDSOURCING RETAILER/WHOLESALER ...

Profile: The Group reported solid sales and operating profits in 2010 thanks to a reduction in its
operating costs and work on improving its purchasing activities. Its net income jumped by 31.4%
to € 1.4 billion. Also helping: a new reinvented hypermarket concept, Carrefour Planet—now
being rolled out into five European countries. Carrefour, the inventor of the hypermarket concept,
has been testing this concept as pilot stores, which feature an upgraded facelift: a festive
atmosphere of discovery with new services, up-to-date technologies, and the feel department store
merchandising via a boutique feel. (Some brands, Apple, Virgin, etc., command their own areas in
these stores.) Also, new store concepts like Carrefour City Café, and Carrefour Express are being
implemented. During the year, some 2,000 new Carrefour branded products were introduce;
another 1,500 new products are planned for 2011, while expanding into textile and home
assortments. Some 5,000 Carrefour branded products will be renovated in 2011. Carrefour
reported raising its own brand sales penetration by 70 basis points to 25.2% of total sales during
the year. Since its launch in May 2009, the Carrefour Discount entry-level brand has been
broadened into fresh products and since January 2011 into household appliances. It is now one of
the best selling brands in France. Over the past few years, Carrefour has pulled out of countries
where it is not the market leader, such as Switzerland, Sloakia, Turkey, Bulgaria Russia, Malaysia
and Singapore. In 2010, Thailand was added to this list; although Carrefour did enter India with
one store during the year. Carrefour now focuses on its strengths, and as a result turned business
around in Belgium, Poland, and Taiwan in 2010. During the year, Carrefour opened some 1,119
new stores, notably in its growth markets: Turkey, China, and Brazil. Also, the Group has focused
on its smaller store formats: opening some 344 new Carrefour City (300-600 square meters) and
Carrefour Contact stores in France, bringing their total to 409 stores. Additionally, there has been
a rollout of Carrefour Market and Carrefour Express (400-900 square meters) stores in Italy (67
added), Belgium (22 added), and in Argentina, Malaysia and Greece—bringing the cumulative
total to 1,582 stores. Carrefour also has been converting its Ed hard discount chain in France over
to its successful Dia banner: 255 conversions in 2010. The Group announced plans to spin off its
25% interest in Carrefour Properties and its 100% interest in the Dia concept in 2011. The overall
strategy now is to optimize its private brand assortment into three tiers: Selection Carrefour, AGIR
Carrefour, and Reflets de France, all premium quality; Carrefour brand as national brand
equivalent; and Carrefour Discount as a price product range. The eventual goal is to build toward
50% of sales volume under its own brands. UPDATE: For 2011, Carrefour reported its total sales
(including VAT) at € 91.5 billion +0.5%. This slight sales gain was buttressed by positive growth
in its emerging markets, Latin American sales +6.8% to € 17.1 billion (turnaround sales in Brazil
and continued growth at Atacado), and Asian sales +2.8% to € 8.2 billion (growth in Indonesia,
recovery in Taiwan; but offset by lower nonfood sales). In Europe, however, sales in France
dipped -2.4% to € 39.5 billion (impacted by lower hypermarket sales and the impact of its action
plan) and in the rest of Europe -4.3% to € 26.8 billion (Belgian turnaround offset by a slowdown
in nonfood sales in Southern Europe). The action plan, launched in August 2011, so far has
improved its out-of-stocks, reduced promotions to a more targeted strategy, and improved its price
position with select suppliers. Carrefour closed the year with a total of 9,771 stores, having
opened or acquired 669 new stores under group banners. The breakout: 4,631 in France, 4,177 in
the rest of Europe, 583 in Latin America, and 380 in Asia. By store format: 1,452 hypermarkets,
2,995 supermarkets, 5,170 c-stores, and 154 cash & carry outlets. Future plans call for increasing
the Carrefour-branded product selection.
Procurement Contacts: Vincent Profichet, Director of Food Purchasing; Martina Gruter, Private
Label Marketing Manager; Anne Rey-Ferrer, Chef de Produits; Luc Pajot, Export Director
CASEY’S GENERAL STORES, INC.
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