Carrefour digital transformation powers 30% hike in online food biz

Carrefour has enhanced its Capex (capital expenditure) by €160 million in 2019 as compared to €1,725 million in 2018.
Carrefour digital transformationCarrefour has a target of €2.8 billion in investments in e-commerce by 2022. Carrefour aims to transform the e-commerce model, logistics, front office, investment in data and hiring new teams.

Carrefour in 2017 appointed Marie Cheval as executive director — Customers, Services and Digital Transformation. Marie Cheval is in charge, for the Group and France, of the digital transformation, customer marketing, e-commerce, data, financial services and merchant services.

The chief information officer (CIO) of Carrefour is Renaud de Barbuat.

“These investments reflect the launch of new strategic projects, in particular, new commercial concept, digital and the expansion of format – growth formats and they continue to benefit from selectivity and productivity measures,” said Alexandre Bompard, chairman and chief executive officer of Carrefour.

Carrefour, which operates more than 12,000 stores and e-commerce sites in more than 30 countries, is building its leadership in food e-commerce online. It has posted growth of more than 30 percent per year for two years in food e-commerce business.

Investment in digital transformation is again reflected in an increase of more than +30 percent in food e-commerce sales in 2019. Sales reached €1.3 billion in 2019 as compared to €1 billion in 2018 (excluding China).

Carrefour is continuing to roll out its omnichannel offering and it targets sales of €4.2 billion in 2022 from food e-commerce.

Carrefour believes that it has strong logistics infrastructure, expertise and partners to support its growth in e-commerce business. Carrefour made the acquisitions of companies such as Dejbox and Potager City to bolster its e-commerce business.

Carrefour said distribution costs were down at 17.5 percent of net sales vs 17.7 percent in 2018. They benefited from the cost savings plans and include the costs associated with new stores and new services offered to customers, notably in digital.

Carrefour and Google in October 2018 announced a partnership around three initiatives: availability of Carrefour on a new Google shopping website and Google Assistant in France, creation of a Carrefour-Google innovation lab and digitization acceleration of the Carrefour Group.

Carrefour opened an innovation lab in Paris in partnership with Google Cloud where Carrefour engineers will work side-by-side with Google Cloud AI experts to co-create new consumer experiences.

Google supports Carrefour’s digital transformation by deploying G Suite productivity tools and collaborative solutions across the entire Carrefour group. 1,000 Carrefour employees will be trained in new technologies.

“We will carry on devoting significant financial and human resources to e-commerce to maintain high growth rates. And we shall focus on operational excellence to improve profitability.

Carrefour has achieved €1 billion in savings in 2019. Carrefour aims to achieve €2.6 billion in saving in the full year by 2020.

Rajani Baburajan

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