Carrefour - 2017 Registration Document

PRESENTATION OF THE CARREFOUR GROUP Description of the Group’s business 2017 REGISTRATION DOCUMENT | CARREFOUR 1. 18 Products and services 1.3.3 Products are the heart of Carrefour’s business. The offering is typical of a general retailer that sells a wide range of consumer goods and services at affordable prices, for the well-being of every shopper. Its success depends on the assortment’s alignment with demand, the synergies between the product and service offerings, the judicious use of digital technologies, the clear and logical positioning of merchandise in stores, compelling prices and promotions, the right purchasing terms and conditions, and fast stock rotation. To cater to the needs of customers around the globe, Carrefour is constantly enhancing its merchandise offering, with a variety of fresh produce, locally sourced products, fast-moving consumer goods, essential non-food products, the latest innovations and convenient services. Fresh produce and local products As a major draw for customers, fresh food demands all of the care and expertise of employees. Carrefour offers a broad range of high-quality fresh products in environments that are carefully designed to deliver an enjoyable shopping experience, with well-stocked stalls, easy-to-reach items, and regional products. Around the world, Carrefour is also developing local, eco-friendly supply channels, supported by long-standing partnerships with farmers, breeders, and producers. National-brand and private label products In addition to their best-selling national-brand products, the Group offers a wide variety of own-brand food products. Carrefour private label products will play a key role in achieving the Group’s food quality objective, in particular through a wider range and greater price appeal. This is one of the priorities of Carrefour’s strategy, which is why the Group intends to multiply its efforts to create private label products that are original and of high quality, in terms of both the ingredients used and the recipes. The Reflets de France brand, for example, promotes traditional products that reflect France’s culinary heritage. It currently spans more than 610 product listings marketed in 45 countries. In this way, the Group banners are driving innovation and responding to the perceived needs of their shoppers. In 1992, for example, Carrefour was the first mass-retailer to sell an organic product and is now the leading organic grocer in France with a 21.4% market share (1) . Quality and safety Carrefour is fully committed to ensuring quality and food safety at every stage. Upstream, for example, Carrefour teams certify and support suppliers based on strict compliance with product specifications and health standards. Through the supply chain, goods are subject to a number of inspections and controls, with special attention paid to fresh products. Downstream, the stores check the quality of their merchandise every day and are themselves subject to a rigorous analysis and audit process. This constant vigilance supports a commitment to transparency in the form of highly visible, easy-to-understand product information. Carrefour encourages the development of new products and new supply channels that deliver significant benefits to customers or the environment. Carrefour is also introducing innovative practices to offer agroecological farm products and non-GMO or antibiotic-free meat. Relations with suppliers and SMEs By the nature of its business, Carrefour nurtures close relationships with a multitude of stakeholders, including customers, suppliers, employees, communities, investors, universities, trade associations and governments. These relationships are forged every day in a climate of trust. As part of this process, Carrefour has deployed a programme to strengthen its partnerships with suppliers, support their growth and contribute to improving working conditions in countries where special vigilance is needed. Retail services and financial services From financing to leisure and from over-the-counter drugstore products to petrol, Carrefour services are available in shopping malls and store car parks to meet customer needs with the same commitment to quality products and services at the best price. While varying by country and local practices, Carrefour services help customers to optimise their shopping time and budgets by enabling them to book a trip or theatre tickets, rent a car, print photos, buy eyeglasses, get their laundry dry-cleaned or benefit from concierge services. In each country, Carrefour is continuing to improve existing services and developing new solutions to support customer mobility. All of the Group’s integrated countries now offer customers financial services that cover a wide range of credit and savings products. These affordable, high-quality products are designed to help customers carry out their projects and meet their needs on a day-to-day basis. These services include financing solutions and products that relate to the stores’ operations (consumer credit, specific purpose credit, insurance, payment cards), as well as personal loans and savings products. Carrefour Banque is the Group’s banking subsidiary that markets banking and insurance products in France, Italy and Belgium. Today, it serves more than 2.2 million customers with exclusive services and benefits, while enabling them to save money when they shop. Carrefour Banque and Insurance also manages 2.7 billion euros in total loans outstanding and 2.4 billion euros in savings for its customers. To make their lives easier, Carrefour Banque and Insurance is also capitalising on innovation and on partnerships with recognised industry players to offer a more diverse range of products and services. Market share by value – Nielsen Homescan panel for the organic product segment in France, over a 52-week period ending December 31, 2017 (1) (hypermarkets, supermarkets and discounters, excluding Drive).