The food transition for all - A year of action - Carrefour Group
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The food
transition
for all
A year
of action
2018 Activity report
I
Offering access for all to healthy,
Contents
tasty, quality food is the mission
that has mobilized our teams
A N O B S E R V A T I O N 02
A N A M B I T I O N 04
for the past year. It is incorporated
A M O D E L 06
in the specific actions that Carrefour
INTERVIEW WITH is undertaking to help more people
ALEXANDRE BOMPARD 08
eat better and to radically transform
the Group’s practices, in line with
A YEAR OF ACTION A YEAR OF ACTION
WITH YOU FOR YOU
consumer expectations.
As part of this pioneering food
transition, Carrefour is pushing its
with
you
for
you agricultural partners and all
food-chain stakeholders to achieve
higher standards in terms of quality,
Eating better A business model … 42
to live better
Shopping the way
14
… that supports our strategy 44 traceability and environmental
Everyone working
you want
Feeling confident
20
to promote better eating 46 protection. The Group is thus
26 Striving every day
increasing its involvement in the local
about what’s on your plate
to achieve food solidarity 48
Receiving a warm welcome
and good advice 30 A strategy driven
Doing more for the planet 36
by active governance
Key financial
50
community and in promoting
and CSR figures in 2018 54
regional economic development.
THE FOOD TRANSITION FOR ALL CARREFOUR 2018
An observation
Better eating is a societal challenge. For pleasure, for health
and also for developing a sustainable production model that
+60% 89%
of consumers worldwide believe that
protects the environment and biodiversity, limits global warming food is as effective as medicine for
In France, there has been a 60% increase in maintaining their health.(1)
and contributes to local economies. Driven by these three
organic farmland in five years. Organic farmland
imperatives – health, environmental and social – Carrefour accounted for 6.5% of usable farmland in 2017.
is reinventing its model to promote a shared ambition: become Source: L’Agence Bio, 2018.
the world leader in the food transition for all.
47%
of French people say that
they have bought more environmentally-
GREENHOUSE
friendly products over the past
GAS EMISSIONS two years; 44% have bought more
products that provide fair compensation
ASSOCIATED
for producers; and 44% have bought
9.8 billion
WITH AGRICULTURE
24%
more products that guarantee animal
HAVE DOUBLED welfare.(2)
IN FIFT Y YEARS,
humans to feed in 2050, AND NOW ACCOUNT
29%
vs 7.5 billion today.
F O R 2 4 % O F T O TA L
38.9%
GLOBAL EMISSIONS.
of consumers worldwide make an
of the world’s adult population is Source: FAO, October 2016. average of more than one online
overweight or obese. That’s the highest purchase per week (31% in France,
level ever recorded. 41% in Germany, 52% in China).(3)
Source: UN, June 2017. Source: Global Nutrition Report, November 2018.
x3
Global sales of organic
+30%
food products
11%
tripled in ten years, The global e-commerce market
reaching €80 billion for FMCG and SSFP grew 30%
in 2015. in 2017 to reach 4.6% of the global
total (5.6% in France).(4)
O F T H E G L O B A L P O P U L AT I O N , O R 8 1 5 M I L L I O N P E O P L E ,
D O N O T H A V E E N O U G H T O E A T.
(1) Source: Eater’s Digest 2017, Prosumer Report.
(2) Source: Ipsos survey, November 2016.
(3) Source: PwC, Global Consumer Insights, 2018.
Source: UN, 2017. Source: L’Agence Bio, 2017. (4) Source: Kantar Worldpanel, 2018.
02 03
THE FOOD TRANSITION FOR ALL CARREFOUR 2018
An ambition
Fully aware of the urgency and scale of the challenges to be addressed, in September 2018 Carrefour
Creator of the hypermarket, pioneer of mass launched Act for Food, a global programme of concrete initiatives for “better eating”. The corresponding
commitments are adapted to meet the specific needs of each of the Group’s host countries. In France,
consumption, leading general retailer of organic products for example, Act for Food is based on 13 key actions.
in France… Carrefour remains true to its history
and is reinventing itself to offer high-quality food that
Ensure Ban
is affordable for all, every day, across all of its distribution that fresh produce 100 controversial
channels. Food that is healthy, varied and authentic, under the Carrefour Bio brand substances from all
is 100% French organic Carrefour food products
that protects the environment and is socially responsible.
Reduce or
completely end
the use of chemical pesticides
in plant product lines
Food End
transition the use of antibiotics in Carrefour Quality Lines livestock farming
To become the world leader in the food transition
for all, Carrefour intends to generate €5 billion End Guarantee Sell
in global sales of organic products by 2022 the use of GMOs in Carrefour a selection of fish sourced fruit and vegetables grown
and to significantly expand its offering of fresh products and in feeds used using responsible fishing from farmers’ seeds to promote
and own-brand products with high taste, quality for livestock methods and aquaculture biodiversity
and environmental standards.
Double Deploy
the number of products blockchain technology
in the vegetarian for traceability across all
Affordable range in 2019 Carrefour Quality Lines
prices
True to its commitment on purchasing Help 500 farmers switch to organic methods
power, Carrefour is taking action
on the prices of its products to ensure
An omni-channel that the food transition is accessible
to all and offers fair compensation
Combat Reduce
strategy for producers. food waste packaging
€5 BILLION IN SALES BY 2022
New technologies have revolutionised the ways
End
the sale of organic fruit
we consume, so Carrefour is investing €2.8 billion
and vegetables that are
in digital technology over five years to build
not in season
an omni-channel universe of reference and become
the world leader in food e-commerce by 2022.
04 05
THE FOOD TRANSITION FOR ALL CARREFOUR 2018
An open, Public authorities Employees
integrated model
Since 2018, Carrefour has undertaken a radical transformation
of its business model to address emerging consumer issues PRODUCERS
and societal expectations. It is an open, integrated model which connects
an extensive ecosystem of producers, customers and partners SUPPLIERS
to create value for each stakeholder. Technology
and strategy
partners
Ecosystem
NGOs
and charities
Convenience
FOR CUSTOMERS:
1 store less than 8 minutes
from home on average in France
STORES CONSUMERS
Openness Shareholders Communities
In September 2018, Carrefour set up a Food
Advisory Committee made up of recognised
experts in eating well, health and sustainable
agriculture:
Lucie Basch, founder of Too Good To Go
Myriam Bouré, co-founder of Open Food France
Emmanuel Faber, CEO of Danone
Jean Imbert, environmentally-responsible chef
François Mandin, Vendée-based farmer
committed to methods that preserve soil
Caroline Robert, head of dermatology
Creating shared value
LOCAL PRODUCTION:
at the Gustave Roussy Cancer Centre
90%
Nearly 28,000 Carrefour Quality Lines Maxime de Rostolan, founder of Fermes d’Avenir
partner producers worldwide and Blue Bees
of employees
are on permanent contracts
€6.2 €523
€2.8
b illion invested in the Group’s digital and omni-channel
transformation between 2018 and 2022.
billion in payroll
and social security
contributions
million in dividends
paid out in cash
or stock
to shareholders
06 07
THE FOOD TRANSITION FOR ALL CARREFOUR 2018
exchange rates to €85 billion. Our recurring encompass nearly 28,000 farmers all over
operating income increased by 4.6% to the world through multi-year partnerships
€1.9 billion and our free cash flow was up 15%. that incorporate rigorous criteria for quality,
Carrefour took some decisive steps in its freshness, and environmental and social
initiatives in favour of the food transition responsibility, based on contracts which also
for all and omni-channel retailing. The reason guarantee a sustainable income to farmers.
we are transforming our model in depth and Bringing together such a large agricultural
reinventing the way we do business is to meet community is an extraordinary lever for
the deep-seated aspirations of today’s ensuring that healthy, local, affordable food
consumers, who are looking not just for healthy, is available everywhere. And we are pushing
balanced, authentic food at an affordable price, for even higher quality. We are developing
but also food which protects the environment agro-ecology within our supply lines, using
and biodiversity, contributes to the local economy blockchain technology to provide transparency
and allows farmers to make a decent living. on traceability, and introducing standards
more widely. We have often been pioneers in
THIS IS WHAT YOU CALL “THE FOOD adopting such standards: on zero deforestation,
TRANSITION FOR ALL”. WHAT DOES for example, or animals raised without the use
THIS MEAN, IN CONCRETE TERMS? of antibiotics and fed on GMO-free feed,
free-range eggs, fish from sustainable fishing,
A. B.: First of all, we are the only retail banner the reduction or elimination of pesticides,
to have incorporated this goal as a core animal welfare, and so on. We are now
element of our model. The food transition helping farmers producing products for
for all has allowed us to restore a great sense our lines to switch to organic methods.
of ambition to Carrefour, and it is an ambition This is essential if we want to be able to offer
that is very much consistent with our history. local and national organic food and as many
After all, Carrefour has been at the forefront seasonal products as possible in each country.
of these issues since the early 1990s with In France, we have undertaken 210 conversions
the introduction of Carrefour Quality Lines, in one year, nearly half of our goal of
500 conversions by 2022.
“Our 508 Quality Lines HAVE CUSTOMERS NOTICED
now encompass nearly THIS CHANGE?
WHAT HAVE BEEN THE RESULTS OF THIS
FIRST YEAR OF TRANSFORMATION, OF 28,000 farmers all over A. B.: In addition to some extremely positive
“BECAUSE REINVENTING THE CARREFOUR MODEL?
A. B.: 2018 was a very busy year during
the world. Bringing together
such a large agricultural
feedback in stores, we have a significant
leading indicator: growth in our sales of organic
products. Sales rose substantially in 2018
OUR AMBITION which we achieved or exceeded our objectives.
This first year was key in terms of implementing
our plan. We needed to streamline our business
community is an
extraordinary lever for
to reach €1.8 billion, in line with our target
of achieving €5 billion in sales by 2022.
Similarly, sales of Carrefour Quality Lines
HELPS ALL OF US, model and create an organisation which is simpler,
more flexible, responsive and open to partnerships.
Much remains to be done, but there is no question
ensuring that healthy,
local, affordable food
products increased by 10%, exceeding
€900 million. At the other end of the chain,
in all of our stores and in e-commerce, we are
IT MOBILISES
that we have regained momentum based on expanding and enhancing our selection
a widely shared goal: the food transition for all.
is available everywhere.” of organic, non-packaged, fresh and locally
It’s a challenge that adds a great deal of meaning sourced products. One example of this is Bio
ALL OF US.”
and enthusiasm to everything we do. So a huge Experience, a true shop-in-shop dedicated
“well done” to all of the Carrefour teams who the development of unbranded and private-label entirely to organic products, which has been
have, in the space of one year, completed some products, and the sale of organic bread in all of hugely successful and will be launched in most
remarkable groundwork. our hypermarkets. As part of the Carrefour 2022 of our hypermarkets. But going beyond these
plan and with the launch of the Act for Food figures, I sense that customers support
Alexandre Bompard, HOW WOULD YOU ASSESS THE RESULTS global campaign, we wanted to go further. We the direction we have chosen to take.
Chairman and Chief Executive Officer, ACHIEVED IN 2018? have redesigned our stores, our commercial Moreover, in this area and more broadly,
Carrefour group offerings and our organisations, and our entire customer satisfaction is now our core objective.
A. B.: We saw strong and encouraging results. business is focused on this objective. It is measured on a daily basis, leading to
Our gross sales grew by 1.4% at constant Upstream, our 508 Quality Lines now corrective actions being taken in real time.
08 09
THE FOOD TRANSITION FOR ALL CARREFOUR 2018
WHAT IS THE AIM OF THE GLOBAL Drive, home delivery – including one-hour become an attractive, pleasant and practical AS A MAJOR PLAYER IN LOCAL
ACT FOR FOOD CAMPAIGN LAUNCHED delivery. In support of these services, destination for our customers, offering ECONOMIES, WHAT FORM
IN SEPTEMBER 2018? we are building a state-of-the-art logistics food-service areas and numerous services. DOES CARREFOUR’S ECONOMIC
infrastructure to guarantee our customers CONTRIBUTION TO THE REGIONS TAKE?
A. B.: In each of our host countries, Act for maximum choice, responsiveness and WHAT ARE THE OTHER COMPONENTS
Food makes us accountable to the public efficiency. As a sign of our renewed OF YOUR TRANSFORMATION STRATEGY? A. B.: First, direct jobs, which cannot be moved
regarding our specific actions to help people attractiveness, in 2018 Carrefour concluded to another location. Carrefour is France’s biggest
eat better and, beyond that, to reduce plastic strategic partnerships with digital giants A. B.: To achieve our ambitions, we must be private employer, with 110,000 employees,
packaging and pollution, minimise food waste, including Tencent and Google. They are helping able to rely on a simpler, agile organisation 90% of whom are on permanent contracts.
protect biodiversity and so on. Carrefour us to design the digital services of the future, which has removed internal boundaries, In 2018, we hired 11,000 people on permanent
champions a global farm-to-table, production- which will simplify, enhance and personalise maintains strict financial discipline and contracts in France. We also take on seasonal
to-waste-recovery policy. This is not just “one the customer experience, both in stores and embraces a culture of operational efficiency. workers in our warehouses and stores: this
more” campaign, we are talking about specific via e-commerce. Finally, we are rethinking all In 2018, we had to take some decisions which amounted to 37,000 people in 2018. In addition,
commitments that we are making and of our branded stores as part of an omni- were difficult but essential for the Group’s each store procures supplies from a growing
publicising. It is a tool which has been readily channel approach. By 2022, we will be opening future: 273 former Dia stores are no longer part number of regional suppliers and producers,
adopted in all countries to mobilise teams 3,000 convenience stores throughout of the Group, voluntary departure plans were as we develop short supply chains. In 2019,
to tackle local issues. There are significant the world, up from the 2,000 initially planned. implemented at head offices, we streamlined for example, we will increase the proportion
variations here, between more and less And we are radically transforming our property holdings, we overhauled the way of French fruit and vegetables in our product
developed countries, with regard to a healthy, our hypermarkets to more closely match we manage purchasing, inventory and logistics. offering in France from 85% to 95%. That represents
responsible diet. the aspirations expressed by our customers. an additional investment of €50 million in
regional agriculture. Every year, we spend a total
YOU HOPE TO MAKE THIS LEVEL WHAT IS BEHIND
“Carrefour has concluded of €1 billion on French agricultural products.
OF FOOD QUALITY ACCESSIBLE THIS TRANSFORMATION? strategic partnerships with Finally, at the local level, our stores are involved
EVERYWHERE, ALL THE TIME, AS PART in sustained efforts on food aid and vocational
OF AN OMNI-CHANNEL RETAIL A. B.: Carrefour invented the hypermarket, the digital giants. They are integration, in partnership with the Carrefour
UNIVERSE. THIS IS THE SECOND PILLAR the concept of “everything under one roof”. helping us to design the Foundation and the Carrefour Solidarity
OF YOUR STRATEGY. WHAT HAVE I have no doubt that that concept is still programme. Among other initiatives, in 2018
THE INITIAL RESULTS BEEN? relevant. It’s just no longer the same roof, services of the future, French hypermarkets and supermarkets donated
nor the same everything. And we must which will simplify, the equivalent of 93 million meals to more than
A. B.: They have been very encouraging. radically change our stores. Globally, we 800 local food charities.
Our e-commerce food sales increased by 30% expect to reduce sales areas by 400,000 m2 enhance and personalise
in 2018 to €1.2 billion, which is in line with by 2022, compared with an original goal of a the customer experience.” WHAT IS THE ROADMAP
our target of €5 billion by 2022. Between 2018 100,000 m2 reduction in France, and to cut our FOR 2019?
and 2022, we will be investing €2.8 billion in product assortment by 15% by 2020, primarily
digital technology, six times more than in non-food categories. When it comes down A. B.: We will be building on the momentum
previously. What is the strategy? Quite simply, to it, our customers want to do their shopping We implemented these measures as part created in 2018, taking our actions further
it stems from what consumers want. Today, more quickly and they would like to be able of a sustained dialogue with employees, and accelerating our transformation. So we will
they want everything: to be able to place to choose how they shop, with services that which was based on a shared and responsible be continuing to expand our offering of
orders via their mobile phone and have them connect stores to the online offering: Drive, assessment of the Group’s situation and all organic, fresh and local products. To give one
delivered in an hour for their evening meal, delivery, click & collect. They also expect an of the challenges to be addressed. And we example: from 2019, all of our Carrefour Baby
as well as to be able to do all their shopping offering which is easier to understand and have committed to systematically seeking range will switch to organic. Moreover, we’ll be
at low prices in store, or pick up their purchases more “efficient”. This is why, on the non-food negotiated agreements with unions on all making wider use of blockchain traceability,
using the Drive drive-through service. side, we are streamlining our ranges, plans that have an impact on jobs. We also stepping up our support for farmers, and rolling
This is why Carrefour is building the most discontinuing some categories of products implemented a cost-reduction plan and a plan out an omni-channel platform which is
complete ecosystem on the market, drawing where we are no longer as relevant as we once for pooling purchases of goods not for resale, increasingly simple, intuitive and personalised.
on the considerable asset represented by were. In other categories, we are establishing allowing us to make greater savings on And we will be offering affordable prices
its 12,000 stores across all formats. In 2018, partnerships with specialist players, such management costs than expected. through our 10,000 own-brand products
we pursued a number of major projects. as Fnac-Darty, with whom we are trialling Consequently, we have revised our savings and an attractive loyalty programme integrated
We rolled out a single e-commerce website household appliance and multimedia shop-in- target from €2 billion to €2.8 billion on an with our mobile payment solution. Eating better
per country based on the Carrefour.fr model shops in our hypermarkets. We are allocating annual basis by 2020. These savings mean food – healthy, fresh, local food with more
and created nearly 200 Drive pick-up points, some of the freed-up space in our stores to that we have been able to identify new flavour and less CO2 and packaging, and no
including 50 pedestrian locations which expanding organic, fresh, non-packaged and opportunities to invest in our future. We are pesticides or additives – is a concern and desire
bring all the benefits of a hypermarket to local product ranges, as well as to dark stores, continuing our efforts to build a sustainable that we all share as consumers and citizens.
the city centre. We have significantly expanded which are dedicated to servicing online orders, growth model and we are making strong It is what drives Carrefour’s teams on a daily
the convenience services that are an integral and to outlets (spaces for inventory clearance choices which benefit the consumer and help basis. Because our ambition helps all of us,
part of e-commerce: click & collect, and bargains). Finally, stores must once again us to become more competitive. it mobilises all of us.
10 11
THE FOOD TRANSITION FOR ALL CARREFOUR 2018
A year with
of action you
12 13
THE FOOD TRANSITION FOR ALL CARREFOUR 2018
Eating better THE PRODUCER
to live better
“Carrefour is providing
valuable support as
we switch 42 hectares
of orchards to organic
agriculture, to produce
Corsican clementines
and pomelos with
dual OA and PGI(1)
certification.
Today’s consumers expect to eat a healthier diet, Supplementing the 30 hectares we previously
Our action plan
with more fresh, local and responsibly-produced foods. converted, these new plots require
nhance our range
E substantial investment. We are exceeding
They want tastier foods that are better for their health, of fresh foods
the requirements for organic certification
safeguard the environment and ensure fair compensation xpand our selection
E by introducing agroecological practices,
of organic products
for producers. With more than 12,000 stores such as protecting plants and animals
I ncrease our range of local within the orchards and installing smart
in 30 countries and more than 360,000 employees, and regional products
sensors to improve water management.
Carrefour has a key role to play in the success of this evelop our vegetarian
D By pledging to purchase specific volumes
product selection
large-scale food transition. A trailblazer in bringing of our citrus fruits at a fixed price for
elp farmers to switch over
H three years, as of year two, Carrefour is
organic foods to retail stores, the Group has created to organic methods
giving us the visibility we need to pursue
508 Carrefour Quality Lines since 1992, bringing oll out the use
R this investment and conversion with
of agroecological practices
together nearly 28,000 farmers in long-term confidence. Yet the company didn’t
to our Quality Lines
demand that we supply them exclusively;
partnerships based on criteria for local sourcing, Promote farmers’ seed systems
they left us free to pursue other markets.
sustainable farming and environmental conservation. Ensure animal welfare It’s a balanced, respectful partnership.”
As part of its transformation plan, Carrefour has raised I ntroduce full traceability
for own-brand products
its standards still further, pledging that its Quality
Lines will pursue an agroecological strategy with
total traceability via blockchain, while supporting
several hundred farmers to switch to organic
methods. The Group is also reinventing its food Our objective
offering to provide the widest variety of organic
products, fresh food, locally produced foods and
€5 billion
in organic food sales
labelled products, through an omni-channel platform by 2022
which simplifies everyday shopping. From the farm Mathieu
Donati
to the table, in stores and online, our teams strive Director
of Agrucorse,
to ensure that good food is available everywhere, a producers’
for every budget. organisation
made up
of 37 Corsican
AN OVERVIEW OF ORGANICS, citrus fruit
producers
FROM FARM TO TABLE
(clementines,
(1) Organic Agriculture and Protected Geographical Indication. pomelos, kiwis)
14 15
THE FOOD TRANSITION FOR ALL CARREFOUR 2018
THE NGO THE MANAGER
“Aware of “In France, organic
the environmental agricultural production
and public health risks covers two thirds of the
posed by industrial agriculture, people nation’s consumption,
today are ready for a true agricultural
and many supply channels are finding
and food transition. To protect the
it difficult to meet demand. If we want
environment and maintain biodiversity,
to achieve our target of €5 billion in
production methods must change if we
organic food sales by 2022, while giving
want the French agricultural industry
priority to local and domestic organic
to produce food in a way that is healthy
products in each country, we need to
for our ecosystem and for consumers.
provide tremendous support upstream
That’s the basis for the partnership
to convert farmers to organic production.
between WWF France, LSDH, APLBC Bio,
That’s the goal of the plan we launched in
Carrefour and its Foundation. It represents
Belgium, France, Spain and Italy, and will
the first time that a partnership of this
soon roll out in Brazil. In France, Carrefour
magnitude – bringing together an NGO,
is committed to supporting the conversion
a producer organisation, an SME and
and organic certification of 500 farmers by
a retailer – has been established in
2022, guaranteeing them a specific sales
France to support farmers who want
volume at a set price over several years.
to switch to organic agriculture.”
We have already achieved nearly half of
our goal, by starting the conversion of
Lucie Smith 210 producers. Downstream, we have
Corporate Engagement
significantly expanded our product offering.
Officer, WWF France
In hypermarkets and Carrefour Markets,
we are introducing Bio Experience, a large
area devoted entirely to organic products.
We will also be opening several dozen
THE CUSTOMER Carrefour Bio stores – with a completely
“I often buy fresh produce revamped concept – and accelerating our
growth in the specialised online retail
and organic groceries at business through our Greenweez
the Carrefour hypermarket subsidiary, the leading European company in
the market.”
in Assago, near Milan,
where I find the widest selection of products from
both local producers and major national brands. Benoît Soury
Organic Market Manager,
I was initially attracted by the colours, the abundance Carrefour group
and the presentation in the stalls – I like to set aside
my grocery list and discover new products. I also like
the clear, accurate labelling and digital displays that
let me check the ingredients, origin, nutritional value
and environmental impact of the products. Because
I have children, I pay careful attention to what we eat.
I’m mindful of Carrefour’s efforts to maintain reasonable
prices on its organic brands, while explaining how
this price compensates the farmers. That’s what
I consider most important: selecting organic products
while making informed choices.”
Igor Ziccardi
Customer at the Carrefour
hypermarket in Assago, Italy
16 17THE FOOD TRANSITION FOR ALL CARREFOUR 2018
THE STORE
MANAGER “In November 2018, we opened
a Bio Experience area at A commitment to eating better
our hypermarket in Mérignac. also means:
It’s a true store within a store, offering a wonderful array €1.8 billion
of organic products in a 500 m2 space, with three times Carrefour’s organic food
sales in 2018.
more non-packaged grocery products, far more
seasonal fruits and vegetables, locally-produced
products, an expansive fresh foods department with a
wide selection and a space for special events. I recruited
a dietician/nutritionist who is available to advise
customers during peak business hours. In three months,
our sales of organic products rose 35%, and our ROMANIA SPAIN FRANCE
non-packaged organic sales grew nine-fold. In addition Setting up high-quality Expanding
agroecology
Banning the use of all +10.1%
to our usual customers buying more organic foods, supply channels controversial substances increase in worldwide
we’re attracting new consumers, who are very well Carrefour founded Carrefour Spain created in our products sales of 508 Carrefour
the Vărăşti farming a Quality Line for In 2018, Carrefour Quality Lines in 2018.
informed in this area. The Bio Experience area also brings
cooperative, which is made agroecological oranges eliminated 100 food
a lot of life to the store. We offer tastings, presentations
up of 100 local farming that are grown without additives from its
by local producers, tours and school workshops, synthetic pesticides
families and delivers more own-brand products.
plus organic cooking classes presented by Urban Chef, than 5,000 tonnes and preserve biodiversity. The Group has
which are always full. It’s truly gratifying for the store’s of vegetables each year In total, Carrefour implemented the same
team, both as employees and as community members to Carrefour’s hypermarkets has launched nine policy in Belgium,
Frédéric Petot
and consumers. It’s also a very tangible expression in the country. agroecological Quality Spain and Italy.
Director of the Carrefour
hypermarket in Mérignac, of our transformation plan. With Bio Experience, we are Lines and is working
to expand the policy
+30
France fully engaged in the food transition for all.” Bio Experience
still further. concepts will be rolled
out to hypermarkets
in 2019.
Jorge Turiel Martínez
Customer at Carrefour Bio
Calle Velarde, Madrid,
Spain
TAIWAN ITALY 95%
Supporting Making organic foods of fruits and
accessible to all vegetables sold in
producers
Carrefour Taiwan BRAZIL In Italy, Carrefour French stores will be
THE CUSTOMER is supporting more than Making dietary products guarantees that the price produced in France.
That’s the target from
50 producers to switch and health food difference between
2019 onwards.
to organic methods more widely available organic food products
and has committed Carrefour is the first and conventional
to providing the same retailer in Brazil to offer products will not
“This is the best store I know support to 100 producers gluten-free, sugar-free exceed 20%.
between now and 2022.
in Madrid, in terms of variety, price and lactose-free
own-brand product
and product presentation. It’s easy to find what ranges, at prices
I need, without having to wander the aisles, that are affordable.
searching through the departments: everything x2
is organic and within reach. Prices are fairly The first French
reasonable and the quality is excellent, compared retailer to launch an
to other organic food stores that I’ve tried. That’s own-brand vegetarian
product range,
especially true for eggs, meat, fruit… There are also
Carrefour will double
organic personal care and household cleaning its selection of vegan
products, but I’m not as familiar with them. That will products in 2019.
be my next goal as a consumer.”
18 19THE FOOD TRANSITION FOR ALL CARREFOUR 2018
Shopping THE CUSTOMER
“I frequently go to Le Marché
for its wide selection of fresh
the way
produce and to enjoy a drink
and dine at the store, where they grill the fish or meat
that I’ve just bought. I’m also a fan of the technology
you want
that’s been installed in this store. I can scan my items
myself using my WeChat app – very popular in China –
then pay using facial recognition through the same app.
It’s as easy as taking a selfie. I can leave without waiting
at the checkout, which saves lots of time and energy.”
Zhentong Lin
Customer at Carrefour
Le Marché, Changning District,
By combining its network of more than 12,000 stores Our action plan Shanghai, China
with an attractive and intuitive online shopping nhance and streamline
E
our online product offering
experience, Carrefour gives each customer the ability on a single e-commerce
to shop when they want, where they want, and how website
they want. In the Carrefour universe, customers can xpand our convenience
E
store formats and integrate
place their orders via computer or smartphone, pick up our hypermarkets into
an omni-channel platform
their shopping from a Drive pick-up point or at a nearby
roaden access to Drive,
B
store, or have them delivered to their home in one hour click & collect and home
with the express delivery service. Of course, customers delivery services
eploy a cutting-edge
D
can choose to shop at the store that best meets their
current needs, downstairs from their flat or at the nearest
logistics infrastructure THE LOGISTICS
ork with our technology
W
partners to build the store
SPECIALIST
hypermarket. With the new online services available “The order
and e-commerce of the future
in stores, customers can compare prices and quality,
preparation
reduce the time they spend waiting at checkout and
platform (OPP)
try out the new mobile payment solution, Carrefour Pay,
along with the Group’s loyalty programme and coupon
in Aulnay-sous-Bois
initiatives. It all adds up to a revamped shopping experience Our objective
currently handles
that is always tailored to the needs of the individual. more than 3,000 orders
€5 billion each day,
in food e-commerce
sales by 2022 all placed online by our customers.
We serve 40 Drive and hypermarket
and supermarket pick-up points. Each day
we strive to meet very short delivery lead
times for an extensive range of 14,000 products.
AN OVERVIEW We work closely with the Group’s
e-commerce teams to anticipate demand,
OF OMNI-CHANNEL adjust product assortments, optimise flows
and measure customer satisfaction.
RETAILING: FROM During 2019 we’ll be automating the Aulnay
OPP using ‘goods to man’ technology
THE SMARTPHONE that automatically sends the products
to the order picker, allowing us to double
Guillaume Leroy
TO THE FRIDGE
E-commerce platform manager,
productivity and handle 7,000 orders a day.” Carrefour France
20 21THE FOOD TRANSITION FOR ALL CARREFOUR 2018
THE FACILITATOR
“One Carrefour, our
e-commerce website,
gives customers access “As part of a strategic partnership
to the entire Carrefour signed in June 2018, Google and
product offering Carrefour opened a Lab, a space
– grocery, non-grocery, clothing, dedicated to the development of
marketplace – through a single platform. new digital services using artificial
It offers delivery and pick-up services,
along with a range of features available intelligence.
through the customer’s online personal Recently established within the 2,500 m2 Hub located
space, including the loyalty programme, near Station F(1), we start from concrete examples
shopping lists and customised benefits. to devise solutions that enrich and personalise the
One Carrefour makes online shopping omni-channel customer experience, in store or online.
even easier and faster for our customers, Our teams complement each other very well. Google
giving them instant access to several million provides expertise in cloud technology, artificial
products across every product category.” intelligence and voice assistance, while Carrefour brings
experience in retail, logistics and an understanding
of its customers. Together, we are creating services
that can make a real difference to consumers.”
(1) Station F, in Paris, is the world’s biggest start-up campus.
Candice Malini
Industry Manager Retail,
Google France
Jesús de los Bueis
E-commerce technical
THE PARTNER
development manager,
Carrefour Spain
THE ORDER PICKER
“Each day I receive customer
orders on my computer
to prepare for drive-through
pick-up the next day.
I pick out the products at our hypermarket in Evere as
if I were a customer, except for the fact that from 6 to 9
in the morning I have the store to myself, and I can find
any products missing from the shelves in the backroom.
We serve a growing number of customers of all kinds,
who are attracted by the time savings and the convenience
of the drive-through. Many of them are regular customers.
Over time I learn what they want in terms of meat, cheese,
fruits and vegetables. If a product is out of stock, I call
Martine Jenard them and suggest an alternative. The Drive pick-up
Order picker, Carrefour Drive, service may well operate online, but it’s something that
Evere, Belgium brings us closer to customers.”
22 23THE FOOD TRANSITION FOR ALL CARREFOUR 2018
THE DATA
“My job is to organise SCIENTIST
and mine the huge volume Simplifying daily shopping
of data (in-store sales, online also means:
+30%
shopping, etc.) that Carrefour increase in global food
collects each day. e-commerce sales
in 2018, or €1.2 billion.
First, we want to better understand the online
experience of each customer, in order to simplify
it to the greatest possible extent. For example, if a
customer frequently buys the same items on Carrefour.fr,
we will highlight them during the customer’s next visit,
or recommend that the customer create a shopping list.
BRAZIL CHINA FRANCE
If they order a lot of organic products, we can suggest Sharing great recipes Building the store Making Carrefour’s 190
On e-Mídia, the Brazilian of the future products even more Carrefour Drive pick-up
original recipes and personalised offers. That’s an
community portal In Shanghai, Carrefour accessible points opened in 2018,
important way to build loyalty. The data scientist’s role including 164 in France.
acquired in 2018 and its Chinese partner As part of its partnership
is to then find the optimal mix of assortments, products,
by Carrefour, people can Tencent – which operates with Google, the non-food
prices and promotions on a store-by-store basis. We
suggest and share recipes, the popular mobile app offering is now available on
provide specialised internal teams with algorithms that use then order all WeChat – opened Google Shopping, and
sales history to refine that mix. In addition, big data is the necessary ingredients “Le Marché”, an inviting Google Assistant allows
also used in the supply chain to anticipate restocking online. The e-Mídia supermarket where users to create a shopping
more effectively and optimise our inventories, purchasing website attracts customers can do list in real time, or to add
and transport. And in the future, it will detect product 2.4 million unique visitors everything with their the ingredients for a recipe. 470
shortages on store shelves in real time, using cameras each month. smartphone, such as scan Carrefour convenience
and connected objects. On a number of issues, their products then pay stores opened
Sylvain Marsault
we work in partnership with data industry leaders Director, Data Science
for them with WeChat worldwide in 2018.
and Data Governance, Carrefour France Pay, a payment solution Carrefour increased
– Google, Sapient, Tencent – who increase our ability
using facial recognition. its store opening
to offer our customers customised digital services.” target from 2,000
to 3,000 by 2022.
THE MANAGER
“In Romania, our Bringo
subsidiary has developed
a mobile solution
that brings the product offering of
BELGIUM EUROPE ITALY 28%
Testing a 24/7 Drive Offering ever more Providing new of our customers
an entire Carrefour hypermarket – more in China use the
pick-up point organic products online in-store services
than 50,000 products – to the consumer’s Greenweez, Europe’s Scan & Go service:
Carrefour has opened In Italy, Carrefour and
smartphone, with home delivery in less leading online distributor they scan and pay
its first fully automated JoinTag, a geomarketing
than 90 minutes. This is especially useful of organic products, for their shopping
drive-through pick-up specialist, joined forces
for people who come home late from using their smartphone.
point near Waterloo. is expanding and to provide hypermarket
They no longer need
work, and those who can’t easily leave Customers can diversifying its offering and Carrefour Market
to wait at the checkout.
their homes. Over the course of one year, place orders from with the acquisition customers with a targeted
we expanded the service’s geographic 18,000 products listed of Planeta Huerto, offer and promotions
coverage from 4 to 13 cities – 23 new cities on a dedicated website, the leading online retailer service. Offers and
then collect their items of organic products promotions appear
will be added in 2019 – and doubled
the next day from a in Spain and Portugal, on their mobile phones
the number of orders. We made an interesting
secure locker. The service with more than while they shop or when
finding: 48% of Bringo users have become 35,000 product listings.
is available 24 hours they are in close
regular Carrefour customers. Online shopping a day. Carrefour will proximity to a store. 20
and brick-and-mortar stores enhance expand the concept if Atacadão cash & carry
one another as part of a platform that’s both testing proves successful. stores opened in Brazil
practical and beneficial to consumers.” in 2018. 20 openings are
Catalin Samara planned in 2019.
Operations Director, Carrefour Romania,
and Director of Bringo
24 25THE FOOD TRANSITION FOR ALL CARREFOUR 2018
Feeling confident “In Poland, we have established
24 Carrefour Quality Lines
THE QUALITY
MANAGER
about what’s
– with 7 more to be launched in 2019 – which supply
our stores with a wide range of fresh products: fruits
and vegetables, cheeses, meats and delicatessen
products. Each line brings Polish farmers and processors
on your plate
who share the same high standards into long-term
partnerships, with very rigorous specifications at every
level, including on soil quality, sustainable production
methods, respect for the environment and biodiversity,
animal welfare and traceability. Carrefour provides
constant support and shares best practices from its
Quality Lines around the world. Each product is subject
to quality controls at every step of the way, from
the field to the store, and each supply line is regularly
Barbara Kowalska
Consumers want guarantees. Demand for quality audited by an independent laboratory. As a result,
Our action plan Quality and Sustainable Development
we can guarantee that all our ‘Jakość z Natury Carrefour(1)’ Director, Carrefour Poland
and transparency has grown as a result of various food xpand blockchain traceability
E
products are of the highest quality.”
to all Carrefour Quality Lines
scandals in recent years. Carrefour has long been
I mprove animal welfare
attentive to these challenges, launching a comprehensive throughout supply chains
quality and traceability process for its 10,000 own-brand by working with NGO partners
to support changes in practices
products. At Carrefour, all products are inspected ncourage responsible
E
and tested at every stage of their life cycle, from production and consumption
the fields and pastures to the store shelves. All suppliers
of seafood THE FARMER
xclude GMOs and their
E “We’ve been supplying
are regularly audited, certified according to the most derivatives from own-brand
demanding standards on the market. Reflecting products and from the feed pork to Carrefour Brazil
these stringent requirements, labels clearly indicate
of livestock used in Carrefour
Quality Lines for thirteen years.
We were among the first producers to be
each product’s origin and composition, its energy part of a Carrefour Quality Line, adhering
and nutritional values and its distinguishing benefits to livestock farming and processing
(PDO, GMO-free, antibiotic-free). Carrefour goes methods that meet the banner’s highly
demanding quality and environmental
even further by applying total traceability, using blockchain protection specifications. When Carrefour
Our objective
technology to its Quality Lines, which involve nearly suggested that we set up a complete
28,000 agricultural producers worldwide. A QR code 100% blockchain traceability solution – the first
of Carrefour Quality Lines in Brazil – we saw an opportunity to
printed on the label allows customers to view the product’s promote the actions we’ve taken in terms
traceable using blockchain
entire history on their smartphone, from production technology by 2022 of quality, ecology, animal welfare and
to the store shelves. That includes the farmer’s name, social responsibility. Each week, we enter
our livestock farming and production
date and location of planting or breeding, agricultural data on the blockchain platform. End
techniques used, processing method, etc. With blockchain customers can view that data on their
traceability, Carrefour is a step ahead in helping smartphone by scanning the product
label. Blockchain offers total transparency,
consumers eat well.
empowering the consumer and creating
a bond of trust along the entire food chain.
Olinto Rodrigues That’s especially important in the Brazilian
A N O V E R V I E W O F T R A C E A B I L I T Y, de Arruda Junior
Itu, State of São Paulo, Brazil
market, which has seen a number
of health scandals in recent years.”
FROM THE FARMER TO STORE
S H E LV E S (1) Name of the Carrefour Quality Lines in Poland.
26 27THE FOOD TRANSITION FOR ALL CARREFOUR 2018
THE PARTNER
“In October 2018, Carrefour Feeling confident about what’s
became the first European
on your plate also means:
retailer to join the IBM Food 16
Trust platform, Carrefour Quality Lines
currently offer total
which unites manufacturers and international mass traceability using
market retailers, along with their ecosystems, around blockchain technology
the Hyperledger blockchain technology. By giving in 6 countries.
everyone in the food chain access to the same
unalterable, tamper-proof information, it allows
for secure, instantaneous traceability. Initially designed
to facilitate withdrawals and recalls, Carrefour also
CHINA BRAZIL BELGIUM
encouraged us to direct the solution towards the end Guaranteeing Georeferencing Providing better 53,000
consumer. Using a QR code, their customers can access food safety beef farmers information thanks quality audits and more
the entire product history, production methods, production In China, Carrefour Carrefour has to Nutri-Score than 3,000 external
created its own network an innovative satellite Carrefour applies panels conducted
dates and locations and processing. We have already
of 37 mini-laboratories, georeferencing system Nutri-Score(1) labelling at Carrefour production
implemented total traceability for all Carrefour Quality sites in 2018.
which perform to monitor whether its to all of its own-brand
Line free-range chicken products in Spain. Our goal is to 260,000 quality tests each Brazilian beef farmers products sold in Belgium,
adopt the solution on a broad scale, ensuring maximum year on the food products are complying with strict allowing customers
transparency, safety and food quality for consumers.” sold in stores. It’s a environmental and social to check a product’s
powerful link in the bond standards. The Group nutritional quality
of trust between has banned beef raised at a glance.
Carrefour and Chinese
consumers.
in deforested areas from
its shelves.
1,600
customers surveyed
each year by an
Sandra Calabre independent body
Key Client Executive, commissioned by
IBM France the Consumer Service
Department on how
well their requests
Haiyi Zhang
are processed.
Customer at Carrefour
Le Marché, Changning
District, Shanghai, China
THE CUSTOMER
“I always want to know FRANCE FRANCE, SPAIN 90%
as much as possible Telling you more Installing cameras
of production sites
for Carrefour brand
about what I eat. with Open Food Facts
Carrefour has registered
in slaughterhouses
In France and Spain, Carrefour
products are certified
by international
That it’s good and healthy: that’s what all of its own-brand food has asked all slaughterhouses that organisations
matters to me. I often buy Carrefour products on the Open Food supply meat to install cameras (such as International
Quality Line products such as Korla pears Facts community platform. onsite, so it can monitor Food Standard).
and Panzhiuha mangoes. They offer Simply scan a product the conditions in which animals
excellent quality at a reasonable price. with your smartphone to view are slaughtered in real time.
At the store, I recently noticed that its Nutri-Score(1), the extent That transparency campaign
I could download the entire history to which it was processed is being conducted jointly with
(NOVA classification) France’s Œuvre d’assistance
of a product to my smartphone by using
a QR code: I could see where and how
and all its nutritional data. aux bêtes d’abattoir (OABA) and 100%
Equalia, a Spanish NGO. of French
it was grown, when it was harvested slaughterhouses
and transported… For me, that’s a very supplying Carrefour brand
useful innovation, giving me total assurance products will be audited
about the quality of the foods I eat. (1) Nutri-Score: a logo developed by France’s national public health agency, Santé publique France, which summarises by an independent entity
The more I know, the easier it is to make a product’s nutritional quality on a scale of A to E. in 2019.
good choices.”
28 29THE FOOD TRANSITION FOR ALL CARREFOUR 2018
Receiving
a warm welcome THE TRAINING DIRECTOR
and good advice
Carrefour’s more than 360,000 employees are on Our action plan
the front line with customers, partners, and stakeholders evelop and expand our
D
expertise in organic products
to help as many people as possible to eat well and
uild on our know-how
B
to realise our shared ambition of becoming the world in nutrition and health
leader in the food transition for all. To achieve this, Increase the number of Carrefour
schools and training courses
Carrefour offers a broad training programme based devoted to fresh foods
on developing knowledge and expertise in the key areas nhance our expertise in digital
E
of food safety and quality, the digital transformation technology, omni-channel
retailing and e-commerce
and customer relations. At the same time, the company
ccelerate the sharing of best
A
is creating a cooperative network, spanning the entire practices among countries,
stores and teams
Group and open to its partners, to share its strategic Véronique Mort
ttain gender equality
A Director of Training,
objectives, accelerate innovation, and exchange best in the workplace and earn Carrefour France
the GEEIS(1) certification in
practices, including those arising out of its global all countries where Carrefour
Act for Food programme. Carrefour is also reinforcing has stores
its policy of equality and inclusion, realising that having
diverse talent within the Group is the best way to understand
the diversity of its customers and their expectations. “We have developed a special
Finally, the Act for Change programme, to support e-learning course on organic
Our objective
employees through the Group’s transformation, was
Train products for Carrefour
launched in early 2019.
100% France’s 110,000 employees.
of our employees in the key areas Made up of 10 modules, the online course has 2 aims:
of the food transition for all to enhance our knowledge of organic agriculture
and to learn in detail about the Group’s strategy and
initiatives to promote delicious, organic, local food that
(1) Gender Equality European and International
Standard.
is widely affordable, everywhere, every day. The course
AN OVERVIEW alternates among different modes of teaching, including
videos, informational summaries, and self-assessment
OF ACT FOR FOOD, tests, to help participants acquire knowledge. With e-learning,
we can provide a basic level of training on a broad scale.
FROM OUR OFFICES We are also implementing specialised courses that meet
the specific needs of both the various business functions
TO OUR STORES and our ambitious goals for growth in organics.”
30 31THE FOOD TRANSITION FOR ALL CARREFOUR 2018
THE MANAGER
“In September 2018,
the ‘Act for Food THE COMMUNICATOR
On Tour’ bus parked
in front of our Carugate
hypermarket.
On the bus, a team of trainers gave
the store’s employees a closer look at
Carrefour’s worldwide Act for Food “The store teams are the first
programme, which had been launched
several days previously. A series of
Carrefour ambassadors our
activities, including workshops, serious customers meet and the
games and videos, gave us an in-depth
understanding of Act for Food, which
primary representatives of
includes concrete commitments our Act for Food programme.
to promote healthy eating and the food That’s why, in September 2018, we organised a special
Michele Masetti transition for all, and allowed us to event at the Sala Palatului(1) in Bucharest for the
Director of the Carrefour discuss the first initiatives being rolled out 4,000 employees of our Romanian stores. After a private
hypermarket in Carugate, Italy in stores. It was a unique, fun, and effective concert by Andra, a very popular singer here, we shared
way for us to learn about the programme, the meaning behind Act for Food and its concrete
and it put the whole team in the right implications. In particular, we discussed the importance
mindset for the launch.” of going beyond food products with our customers
by explaining the history and methods of the farmers
we support, as well as sharing culinary traditions, recipes
and tips for eating healthy, fresh, local, homemade food.
THE TALENT At the end of the day, the teams had the basic information
DISCOVERER they needed to apply Act for Food in the field based
on our four pillars: organic, own brands, Carrefour Quality
“In 2018, we signed Lines, and the partnership with farmer co-op Vărăşti.
Employees were also able to learn about Act for Food
a partnership with from a global perspective, as it relates to everything
CEU San Pablo from reducing food waste to promoting animal welfare.”
University in Madrid. (1) A well-known concert and conference venue in Bucharest.
As part of the partnership, we worked
with Professor Varela, a noted Spanish
nutritionist, to develop a training curriculum
for all Carrefour Spain food buyers
and managers. The programme covers
every aspect of nutrition and eating well,
including the components of a healthy
diet, AECOSAN(1) recommendations,
and food preservation processes. It helps
our buyers hone their expertise and increases
our ability to become the leader and gold
standard in the food transition for all.”
(1) Spanish agency for consumer affairs, food safety Claudia Rusu
and nutrition.
Catalogues & Communications Manager,
Carrefour Romania
Gloria Cuadrado
Director of Talent Management,
Carrefour Spain
32 33THE FOOD TRANSITION FOR ALL CARREFOUR 2018
Providing a warm welcome
and guidance also means:
THE MOTIVATOR 49.5%
of new managers,
61.1% of new directors
and 47% of new senior
directors were
promoted from within
the company in 2018.
WORLD WORLD FRANCE
Rewarding Committing Integrating more
innovation to gender equality digital expertise
in the workplace
Through the international
Food Transition Store Carrefour is working
As part of a strategic
global partnership signed 6.36%
Challenge, Carrefour towards Gender with Google in June 2018, The percentage of
recognises store Equality European and a thousand Carrefour people with disabilities
employees who have International Standard managers and engineers employed in Carrefour
France hypermarkets
designed and (GEEIS) certification, are receiving
and supermarkets.
implemented the best which evaluates the Go Transform training
Across all countries,
initiatives to promote efforts taken to achieve from Google in the fields
Marta Bobrowska people with disabilities
Manager, Digitalents mentor, healthy, affordable food gender equality in the of digital services
accounted for 3.4% of
Learning & Development, for everyone. workplace. Carrefour has and e-commerce. Carrefour’s workforce
Carrefour Poland earned the certification in 2018, with a target
at Group level and of 4% by 2025.
in seven countries
“A volunteer ‘digitalent’ (Argentina, Brazil, Spain,
China, France, Italy and
has been appointed in each Romania). Objective:
100% of countries
of our Polish stores. certified by 2020.
Employees of the store can go to this person for help 2,000
on anything related to the digital transformation employees will be
(Scan & Go service, G Suite collaborative tools, identified and recognised
e-couponing, etc.). All 240 of the digitalents currently as “superheroes” of the
working in Carrefour Poland’s supermarkets and ARGENTINA CHINA food transition in stores
by 2020.
hypermarkets receive special training. They are Training tomorrow’s Excelling in fresh foods
supported by a mentor and organised into taskforces leaders In 2018, the Carrefour
on a collaborative platform to accelerate the sharing In 2018, more than China Fresh School
of ideas, knowledge, and practices. They play a very 120 employees entered trained more than
active role in the digital transformation of the stores the store manager 1,100 employees in fresh
training school created food-related professions,
and in the design and roll-out of new tools and new
services to meet the needs expressed by our customers.
by Carrefour Argentina building the Group’s 3.7
to encourage internal POLAND capacity to offer safe, million hours of training
They have already become a top-notch force for promotion and provide healthy products every were delivered in 2018.
Enhancing
implementing our digital transformation in keeping the next generation our customer culture day in China.
with the expectations of Polish consumers.” of managers with In 2019, Carrefour will
the keys to the food train 13,000 employees
transition for all. and 2,500 managers
in Poland in innovative,
customer-centric retailing
as part of the LEON
9,700
employees received
programme. training on the organic
or fresh foods market
in 2018.
34 35You can also read
