Transcription of CARREFOUR INVESTOR DAY
1 26 April 2017 | 1 CARREFOUR INVESTOR DAY L EXP RIENCE OMNICANALE CARREFOUR April 26, 201726 April 2017 | 2 Agenda9:00 AM 10:30 AM Opening remarks Introduction Multiformat & Omnichannel model Q&A session10:30 AM 10:45 AM Break10:45 PM 12:20 AM CRM & Data Supply Chain Q&A session Closing remarks12:20 AM 2:00 PM Lunch, with demos of products, solutions and concepts2:00 PM 6:00 PM Store tour26 April 2017 | : The empowered out CARREFOUR s Multiformat & Omnichannel CRM & data to engage with an adapted supply chain L EXPERIENCE OMNICANALE CARREFOUR 26 April 2017 | 4 OPERATIONAL SPEAKERSB ernard BuonoAdvisor to the Chairman & CEO on Strategic MarketingPascal ClouzardExecutiveDirector, CARREFOUR SpainHerv ParizotExecutive Director,E-commerce & Customer Data, CARREFOUR France Anne-Laure KleinGroup StrategyDirectorCl ment MartyDigital Marketing, Loyalty and Innovation Director, CARREFOUR Spain Enrique Garcia LopezDigital Director, Big Data and Data Science, CARREFOUR Spain Florence BatchourineSupply Chain Director.
2 CARREFOUR France26 April 2017 | 501 Bernard BuonoAdvisor to the Chairman & CEOon Strategic : The empowered consumer26 April 2017 | 6 RETAIL IS NO LONGER ONLY ABOUT PRODUCTS ON SHELVESC ustomers want more, better, seamless and at the right priceTHENAME OF THE GAME IS CONSUMER EMPOWERMENT26 April 2017 | 860%want localbrands & fresh products86%think that transparency in companies is important63%care about the originof the products they purchase67%want fewerpreservatives and coloring agentsON FOOD, CONSUMERS NEED TRANSPARENCY & COMMITMENTS01. INTRODUCTION: THE EMPOWERED CONSUMERS ource: Havas/ Nielsen / PWC / KantarThese commitments are becoming the new standard of qualityTrust in quality and commitments brings client loyalty26 April 2017 | 1158%shop online for 24/7 availability50%of millenialsin the active population in 202034%use mobile devices to makepurchasesCONSUMERS NEED MORE CARING, MORE RELATIONSHIP01.
3 INTRODUCTION: THE EMPOWERED CONSUMERS ource: Havas/ Nielsen / PWC / KantarThe new consumer: Older, more urban, more digitized, more mobile17%> 65 years oldin 2050 vs penetration between 2000and 2016 66%urbanisation rate in 2050(vs. 54%in 2014) 26 April 2017 | 12 RETAILERS NEED TO TAILOR THE CUSTOMER EXPERIENCE01. INTRODUCTION: THE EMPOWERED CONSUMERCONVENIENT, SEAMLESSI want it MY way, at MY time and at MY placeENJOYABLE In-store & onlineI want to have a PLEASANTSHOPPING EXPERIENCE THE REFERENCE IN FOOD RETAIL, MULTIFORMAT& OMNICHANNEL 26 April 2017 | 1402 Pascal ClouzardExecutiveDirector, CARREFOUR SpainAnne-Laure KleinGroup StrategyDirectorHerv ParizotExecutive Director,E-commerce & Customer Data, CARREFOUR France out CARREFOUR s Multiformat & Omnichannel : The empowered consumer26 April 2017 | out CARREFOUR s Multiformat & Omnichannel modelMultiformat & OmnichannelIllustration Digital.
4 The empowered consumer26 April 2017 | 161%SalesE-commerce The broadest assortment at any time, any place on any deviceEACH FORMAT HAS A SPECIFIC MISSION02. ROLLING OUT CARREFOUR S MULTIFORMAT & OMNICHANNEL MODEL51%SalesHypermarketsEverything under one roof at a competitive price25%SalesSupermarketsChoice close to home with a focus on fresh10%SalesConvenienceEssential daily needs with extended shopping hours13%SalesCash & CarryWholesale prices for a no-frills experience26 April 2017 | 17 HYPERMARKETS EVERYTHING UNDER ONE ROOF AT A COMPETITIVE PRICEHYPERMARKETS CARREFOUR s historical format New hypermarket concepts tested in all geographies Renewed offer attractive and powerful Gradually becoming more urban, as cities expandApril 26,2017| 1702.
5 ROLLING OUT CARREFOUR S MULTIFORMAT & OMNICHANNEL MODEL100,000 SKUs7,345 Average Sqm1,328stores51 Average basket (France)26 April 2017 | 18 HYPERMARKETSILLUSTRATION: VIDEOOPENINGBADE -TAIWAN02. ROLLING OUT CARREFOUR S MULTIFORMAT & OMNICHANNEL MODEL26 April 2017 | 19 Alcobendas, SpainFan Mallorca, Palma, Spain26 April 2017 | 20 Carugate, ItalyMonroe, ArgentinaMons, BelgiumVilliers en Bi re, France26 April 2017 | 21 SUPERMARKETSCHOICE CLOSE TO HOME WITH A FOCUS ON FRESHSUPERMARKETS Dedicated to food Clusterizing to better address local needs 4 clusters: Gourmet, Attraction, Urban, Discount Successful cross-fertilization across countriesApril 26,2017| 2102.
6 ROLLING OUT CARREFOUR S MULTIFORMAT & OMNICHANNEL MODEL20,000 Average SKUs1,319 Average Sqm28 Average basket (Belgium)3,227stores26 April 2017 | 22 SUPERMARKETSILLUSTRATION: VIDEOMARKETGOURMET -ITALY02. ROLLING OUT CARREFOUR S MULTIFORMAT & OMNICHANNEL MODEL26 April 2017 | 23 Sierpinskiego, PolandSaint Marcel, FranceCondede Penalver, SpainSupecoAlcorcon, Spain26 April 2017 | 24 CONVENIENCEESSENTIAL DAILY NEEDS WITH EXTENDED SHOPPING HOURSCONVENIENCE Format in constant evolution, adapting to changing social and consumption trends On top of generalist stores, multiple tests of specialized convenience concepts across countries (organic stores, etc.)
7 Last 2 countries to launch convenience format: Brazil and China, well received by consumersApril 26,2017| 2402. ROLLING OUT CARREFOUR S MULTIFORMAT & OMNICHANNEL MODEL6,500 Average SKUs255 Average Sqm12 Average basket (Italy)7,075stores26 April 2017 | 25 CONVENIENCEILLUSTRATION: VIDEOCARREFOUR EASY-CHINA02. ROLLING OUT CARREFOUR S MULTIFORMAT & OMNICHANNEL MODEL26 April 2017 | 26 Express Padre Antonio, BrazilExpress JerozolimskieVarsovie, PolandCarrefour Bio Levallois, FranceBon App! Paris, France26 April 2017 | 27 Express HermosillaMadrid, SpainExpress Urban Life Milan, ItalyEasyXietuShanghai, ChinaExpress Eat & Shop Milan, Italy26 April 2017 | 28 CASH & CARRYWHOLESALE PRICES FOR A NO-FRILLS EXPERIENCE8,000 Average SKUs4,121 Average Sqm59 Average basket (Atacad o)CASH &CARRY B2B pure play activities in France (Promocash) and Italy (Docks and Gross Iper) Hybrid B2B/B2C: Atacad ois a winning model in Brazil Successful cross-fertilization based on Atacad oin other countries: Maxi in Argentina and initial Supecoin SpainApril 26,2017| 2802.
8 ROLLING OUT CARREFOUR S MULTIFORMAT & OMNICHANNEL MODEL305stores26 April 2017 | 29 CASH & CARRYILLUSTRATION: VIDEOATACAD O02. ROLLING OUT CARREFOUR S MULTIFORMAT & OMNICHANNEL MODEL26 April 2017 | 30 Atacadao Igarassu, BrazilMaxi Buenos Aires, ArgentinaAtacadao Vila Maria -Sao Paulo, BrazilPromocashGerland, France26 April 2017 | 31 MULTIFORMAT PROGRESSIVELY ROLLED OUT IN ALL OUR COUNTRIESFRANCESPAINITALYBELGIUMPOLANDRO MANIAARGENTINABRAZILCHINATAIWANH ypermarketSupermarketConvenienceCash & CarryeServiceOther services: Travel, leisure, ticketing, car rental02. ROLLING OUT CARREFOUR S MULTIFORMAT & OMNICHANNEL MODEL26 April 2017 | 32 CARREFOUR S CENTER OF GRAVITY IS SHIFTING TOWARDS MULTIFORMATBREAKDOWN OF STORES UNDER BANNERS BY FORMAT5,4797,0759,0002,9863,2273,7001,36 61,3281450164305350201220162019e9,995 stores11,935stores14,500storesEvolution 2012 vs.
9 2019e+100%+6%+24%+ 64%Cash & CarryHypermarketsSupermarketsConvenience GROSS SALES BREAKDOWN (%)58%51%<50%42%49%>50%201220162019eHypermarketsOther formatsApril 26,2017| 3202. ROLLING OUT CARREFOUR S MULTIFORMAT & OMNICHANNEL MODEL26 April 2017 | 33E-COMMERCE, AN ADDITIONAL FORMATAND A COMPLEMENTARY SERVICEHYPERMARKETSSUPERMARKETSCONVENIEN CECASH &CARRYE-COMMERCE02. ROLLING OUT CARREFOUR S MULTIFORMAT & OMNICHANNEL MODEL26 April 2017 | 34 RAPIDROLLOUTOF E-COMMERCE THROUGHOUTTHE GROUPFRANCESPAINITALYBELGIUMPOLANDROMANI AARGENTINABRAZILCHINATAIWANFOODHome delivery and/or Click & Collect In progress2017 NON-FOODD irect offer 20172017 ( ) ( )( )Marketplace In progressIn progressIn progressIn progressUnder study In progressUnder study02.
10 ROLLING OUT CARREFOUR S MULTIFORMAT & OMNICHANNEL MODEL26 April 2017 | 352020 E-COMMERCE PROSPECTS 4bnTargetx3 20162020 targetGROSS MERCHANDISE VOLUME02. ROLLING OUT CARREFOUR S MULTIFORMAT & OMNICHANNEL MODEL26 April 2017 | 36 STORE BASED OMNICHANNEL MODEL: UNIQUE OPPORTUNITY TO ENSURE E-COMMERCE SUSTAINABILITY02. ROLLING OUT CARREFOUR S MULTIFORMAT & OMNICHANNEL MODELOPERATIONAL MODELFOR ORDER MANAGEMENTCONSUMER CHOICESFOR ORDER COLLECTIONE-CommerceStore-picking across formats(hypermarkets, supermarkets, convenience)Mixed model: store + dedicated picking spaceWarehouse or dark store(with or without automation)Home delivery Click & collect in storePick-up points (lockers etc.)
