Because of Carrefour’s great success, they decided to diversify into another related industry: the Restaurant industry. This resulted in the creation of Brapa in 1980; unfortunately this subsidiary was not very successful and Carrefour Abandoned Brapa in 1985. Due to this failure Carrefour decided to only diversify into related business. They went on to open Supermarkets, Convince stores and Cash and Carry stores where products could be purchased by other business in bulk format. Through product diversification, which in Carrefour’s case was opening up consumer goods stores in multiple formats, they decided to expand these store formats geographically by entering foreign market with the same general concepts, but changing up the product
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But they have had acquisitions and partial acquisitions, their first one being when the entered the Spanish market with a 50% holding in Promotora de Hipermercado. In the early 1980’s Carrefour raised its stake in Erteco, which is a convenience store chain from 50% to 100% in order to gain full control over the chain of 75 stores. It is also notable that Carrefour has a 20% stake in the American wholesale giant, Costco. Through the 80’s Carrefour has taken stakes in various companies from furniture retailers, to home appliances and electronics retailers in order to diversify their portfolio. A significant acquisition took place in 2007 where Carrefour acquired the Romanian supermarket Artime in and $80 million deal. This enables them to be different from their major global counterpart Wal-Mart who predominantly creates value by opening single-format hypermarkets through North America selling similar products at similar prices through the continent with very little diversification.
Restructuring
In 2010, Carrefour received a new CEO Lars Olofsson and that same year Carrefour announced that they would be doing a major overhaul of their apparel division they also announced that the would spend close to $2 billion to revitalize underperforming stores, this resulted in its sale of 42 stores in Taiwan for $1.2 billion. Carrefour is constantly investing into new ventures through their restructuring …show more content…
According to the Yuanjing Jin from the MMR Consulting (Shanghai) Co.Ltd., the local market research expert, they did so because such decorations are common in China as Chinese people like everything that is „flashy“, unlike the Americans who like order and thus Carrefour stores in America are also decorated according to the preferences of that market. Also, in the stores in the Chinese market they have also adapted the assortment according to their preferences, thus more than 2/3 of the store was „localized „as the products were mostly from their market and the customers were already familiar with them, but they also placed large tanks in the store with live fish and turtles and frogs as in China consumers prefer to buy fish alive (Lessons in “Think global, act local”,
But they have had acquisitions and partial acquisitions, their first one being when the entered the Spanish market with a 50% holding in Promotora de Hipermercado. In the early 1980’s Carrefour raised its stake in Erteco, which is a convenience store chain from 50% to 100% in order to gain full control over the chain of 75 stores. It is also notable that Carrefour has a 20% stake in the American wholesale giant, Costco. Through the 80’s Carrefour has taken stakes in various companies from furniture retailers, to home appliances and electronics retailers in order to diversify their portfolio. A significant acquisition took place in 2007 where Carrefour acquired the Romanian supermarket Artime in and $80 million deal. This enables them to be different from their major global counterpart Wal-Mart who predominantly creates value by opening single-format hypermarkets through North America selling similar products at similar prices through the continent with very little diversification.
Restructuring
In 2010, Carrefour received a new CEO Lars Olofsson and that same year Carrefour announced that they would be doing a major overhaul of their apparel division they also announced that the would spend close to $2 billion to revitalize underperforming stores, this resulted in its sale of 42 stores in Taiwan for $1.2 billion. Carrefour is constantly investing into new ventures through their restructuring …show more content…
According to the Yuanjing Jin from the MMR Consulting (Shanghai) Co.Ltd., the local market research expert, they did so because such decorations are common in China as Chinese people like everything that is „flashy“, unlike the Americans who like order and thus Carrefour stores in America are also decorated according to the preferences of that market. Also, in the stores in the Chinese market they have also adapted the assortment according to their preferences, thus more than 2/3 of the store was „localized „as the products were mostly from their market and the customers were already familiar with them, but they also placed large tanks in the store with live fish and turtles and frogs as in China consumers prefer to buy fish alive (Lessons in “Think global, act local”,