Carrefour

1
Carrefour El Corte Ingles

• The Spanish Take on the Big Box and the
  Department Store

2
General Information

• Macys Style
• Mix of high-end and affordable
• Multiple story layout
• Focus on design and quality

• Wal-Mart Style
• Inexpensive products
• Vast one story layout
• Focus on products and convenience

3
Features

• Open layout
• More focus on function than form
• Plenty of checkout stations
• Variety of products
• Toys
• Outdoor furniture
• Tools and hardware
• Supermarket

4
What They Do Right

• Plenty of checkout stations
• Many of them actually open
• Multiple managers present to assure speed and
  quality of service
• Individual shops within the store
• Cater to old European idea of shopping at
  specialty stores for different products
• Give you the feeling that the consumer isnt just
  in a discount store

5
Individual Shops

• Many sell Carrefour products, but mix in other
  brands
• More intimate
• Give the impression of increased quality
• Give individualized service with salesperson in
  each shop
• Give a variety of services not always associated
  with American Big Box

6
Individual Shops Examples

• Pastries
• Furniture
• Fabrics
• Luggage
• Travel Agency
• Pet Store
• Dry Cleaner
• Health Foods

• Optical
• Shoe Repair
• Cell Phones
• Perfume
• Models and toys
• Sandwich shop
• McDonalds
• Sportswear

7
Individual Shops Examined

• Furniture
• Quality items
• No Carrefour brands
• Probably independently owned
• Luggage
• Mix of quality
• Many Carrefour brands with others
• Certainly owned by Carrefour, but doesnt feel
  that way

8
Features

• Multi-floor layout with specific departments that
  have their own style
• As much focus on style and design as products
• Individual service in each department
• Variety of products
• Toys
• Clothing
• Electronics and musical instruments
• Supermarket
• Books

9
What They Do Right

• High quality presentation
• Knowledgeable staff that is always easy to find
• Mix of nice stuff with everyday stuff, but
  consumer never feels they are in an everyday
  environment

10
Price Comparison

• Jennifer Lopez Rebirth

15.90 21.47
17.95 23.87

• Collateral DVD

16.50 21.95
19.95 26.53
Exchange Rate approx. 1.33 to 1
11
Price Comparison

• Johnnie Walker Red 700 ml

9.59 12.75
9.89 13.15

• Coca Cola 12 pack

4.95 6.58
4.95 6.58
Exchange Rate 1.33 to 1
12
Overview

• Better prices
• Convenience of large parking lot
• Limited by location outside city center
• More service in upscale areas, but less in main
  floor

• Higher prices
• Convenience of location on main square
• Draw a great deal of foot traffic
• Efficient service and checkout in areas

13
Possibilities/Limitations

• Offer more high end products in innovative
  setting
• Expand services like dry cleaning, cell phones,
  etc.
• Consider leasing space to outside vendors

• Tough hill to climb with Wal Mart discount image
• Requires increased expenditure and
  training/equipment beyond simple retail
• May not want to give up profit from sales

14
Possibilities/Limitations

• Offer more diverse products like food,
  instruments
• Increase focus in design/style, even in everyday
  items

• Americans used to supermarkets, specialty stores
• Overhead required to hire designers and train
  floor personnel

15
Conclusions

• Carrefour and El Corte Ingles both interesting
  takes on American icons
• Both use concepts tailored to European attitudes
  and lifestyles to take successful American models
  and adapt them
• Works very well in Europe, but would have to
  integrated slowly into existing American
  companies
• Possible model for new venture