Carrefour - 2017 Annual Report

C A R R E F O U R — 0 7 More selective To better serve the Group’s ambition and competitiveness, the resource allocation strategy will be more efficient and more selective. This means no longer investing in renovation or extension projects which are disproportionate to the potential of the stores concerned. Instead, more emphasis will be placed on standardisation to reduce unit costs and improve the return on capital. The freed-up resources will be directed towards priority investment projects that improve price competitiveness and support the Group’s digital ambition, the development of growth formats, and revamping the offering to serve the food transition. More competitive To improve price competitiveness and pursue an investment policy more focused on growth drivers, Carrefour must improve its efficiency and competitiveness. The Group is therefore embarking on a powerful cost reduction plan with a target of €2 billion in savings by 2020. In doing so, Carrefour intends to better leverage its international presence to optimise direct and indirect purchasing, while also reducing assortment size by more than 10%, in line with shifting customer expectations. Carrefour and Système U have announced a five-year purchasing cooperation agreement. The Group will also be implementing strict spending controls and improving operational efficiency. €2 billion annual investments €2.8 billion invested in digital transformation by 2022 €2 billion savings by 2020 Continuous productivity improvements