Carrefour, the number two food distribution company in France behind Leclerc, which recorded a turnover of 20.4 billion euros in the third quarter of 2021, announced on Tuesday, November 9 that it will implement a major investment plan for the development of e-commerce and triple your online sales. until 2026.
The group also specified that it is launching a partnership with Matt, Facebook’s parent company, in order to develop, among other things, a mobile application that should integrate all Carrefour services (driving, fast home delivery with UberEats and Cajoo, loyalty programs, etc.).
Triple the volume of online transactions, first priority
Three billion euros is the amount that Carrefour wants to invest in digital technology in the period 2022-2026. to accelerate its development in online commerce, a key area of the new strategic plan desired by Group CEO Alexandre Bompard.
France’s second-largest food retailer, which has already invested heavily in its digital strategy in recent years, investing at least $ 2 billion in the past five years, and which has doubled e-commerce sales in two years, intends to double the bite in years coming. Investments in digital technology will thus increase by 50 percent and reach 600 million euros per year from 2022, compared to 400 million per year on average from 2018.
The goals of such a strategy are multiple. The main goal shown by Carrefour is to triple its gross volume of online transactions by 2026, to reach 10 billion euros a year.
Thanks to this strategy focused on online sales, the food giant plans to significantly increase its current operating profit. “Carrefour expects e-commerce to generate € 200 million in additional current operating revenues in 2026 compared to 2021.”according to AFP.
Play a whole host of race delivery modes
To support this strategy, the group wants to further apply the various delivery methods that exist today: vehicle delivery or home delivery in record time.
During the first closure, Carrefour began establishing partnerships with delivery platforms UberEats and Deliveroo to compete with ultra-fast delivery startups such as Cajoo, Flink, Dia, Gorillas or Getir.
Taking into account the opportunities to work with these startups for express delivery, which account for about 7% of food orders in France and 25% in Paris (according to market research provider FoxIntelligence), and observing the entrance of German supermarket Rewe in the capital of young German filming Flink for fast delivery, Carrefour finally decided to enter the capital of the French start-up Cajoo last July, in which it thus has a minority stake.
Since the end of October, the group has also launched Carrefour Sprint, a partnership with UberEats and Cajoo, to deliver its products in less than fifteen minutes.
In addition to the food component, Carrefour intends to develop its range of non-food products online, relying on social media, among other things.
With Met (formerly Facebook), Carrefour has chosen a strong ally
Carrefour has also announced it will work with Met, Facebook’s parent company, but did not disclose how much is tied to the partnership. Objective: to work on the development of an application that should eventually connect all Carrefour sales channels (driving, fast home delivery, loyalty programs, etc.).
Carrefour is also taking an important step in its internal communications strategy, announcing the implementation of Workplace, Meta’s professional communications tool, to its 320,000 employees. The goal is yes “enable employees to create communities and use familiar social media features in their daily work to better communicate with each other”.
“This partnership is helping Carrefour innovate in the way it serves its customers, and at Meta we know that can only happen if your people are connected and aligned.”commented Nicola Mendelsohn, vice president of Meta Global Business Group, quoted in a press release.
To mark their commitment to digital, Crossroads he further indicated that he would train all his staff digitally, “That’s about 100,000 people a year.”this time in partnership with Google.
Special context for another French distributor
These announcements come in a special context for Carrefour, when the group decided to put an end, a month ago, to talks that were supposed to lead to rapprochement with another juggernaut of the large Auchan distribution.
Although the hypermarket format has suffered in recent years, the takeover of Carrefour by Auchan has been considered, but Carrefour has finally decided not to do so, as shareholders found Auchan’s valuation offer too weak, and found it difficult to value Auchan. , which is not listed on the stock exchange. Recall, the Mulliez family, owner of Auchan, offered compensation to Carrefour shareholders up to 70% in cash, at a price of 21.50 euros per share, and slightly less than 30% in Auchan shares, which Carrefour estimated at 16, 5 billion. euros.
Earlier this year, in January, Carrefour was also tried by the Canadian food group Couche-Tard, which offered 20 euros per share, but the project was rejected by the Ministry of Economy due to food sovereignty.
In addition to these previous talks on taking over the group, plans to move to a 2022 lease management for 43 Carrefour stores, including 16 hypermarkets – with around 6,000 employees – were announced on 14 October. Leasing management consists of outsourcing the work of the store, entrusted to the manager. Carrefour’s management sees this as a way to restart actions that are often in difficulty, but this measure has been sharply criticized by unions, who are particularly afraid they will be used to “bypassing the law on economic redundancies”.