Carrefour’s Transformation: Atacadão Cash and Carry Concept Coming to France

2023-06-28 11:43:00

Which of the 253 Carrefour hypermarkets in France will be transformed into a Brazilian-style cash&carry format? Stains, Aubervilliers, Aulnay-sous-Bois, Montreuil, Rosny-sous-Bois or Sevran? Among the six sites, all in Seine Saint-Denis, selected by the distributor for the future installation of Atacadão, that of Aulnay-sous-Bois would hold more than the rope. According to several concordant sources, this 14,000 m² hypermarket might well accommodate the discount and winning Carrefour brand in Brazil in France. Canceled at the last minute, a CSE should be rescheduled in the coming weeks. The supermarket currently employs around 400 people. Solicited by LSA, Carrefour confirms that the first phase “ of studies and consultations with local authorities has been completed ». « The dialogue with the municipality of Aulnay-sous-Bois is continuing and, if confirmed, the project will be subject to a consultation procedure with the social partners. ».

Moroccan franchisee LabelVie

Installed in the Parinor shopping center, this store was not chosen at random. We remember that the Sevran site had been designated by Carrefour initially, last January, before the sign was forced to back down, in front of the outcry coming in particular from the municipality. The Aulnay-sous-Bois hypermarket belongs to the franchisee of Carrefour in Morocco, LabelVie. Since 2022, the latter, embodied by businessman Zouhair Bennani, has managed six hypermarkets in France, including five located in the PACA region, Marseille and Grenoble. In the Paris region, it operates a single hyper today, that of Aulnay-sous-Bois, in lease-management. A mode increasingly popular with Carrefour. To date, 29% of hypermarkets and 74% of supermarkets in France are franchised.

Import Atacadão Achievement

Why do you want to apply in France what works in Brazil? The inflationary context obviously has something to do with it, as the Atacadão formula is centered around price. And hits the mark in Brazil The principle: a short assortment (around 11,000 references over 5,000 m² on average), at wholesale prices, 10 to 15% lower than those of a classic hypermarket, intended for a clientele made up of individuals and merchants, associations… The prices also vary according to the quantities purchased.

Given the success of this brand in Brazil – it represents 70% of Carrefour’s sales in this country and 80% of its profitability – Carrefour CEO Alexandre Bompard has great hopes in Atacadão. During the presentation of his four-year plan on November 8, 2022, he recalled that “ in five years, we have invested heavily in Brazil. It is a real tool of conquest for our group. We will continue the expansion of Atacadão in this country, reaching 470 stores by 2026 “. Presented as “the best anti-crisis solution”, the format will therefore indeed arrive in France in January 2024.

10 million euros of investment to adapt the concept to France

It remains to be seen in what form. In Aulnay-sous-Bois, specifies Carrefour, it would be the largest investment of the decade in a commercial project in Seine-Saint-Denis (around 10 million euros). But in Aulnay, the concept, originating in Brazil, would probably be adapted to the French market to meet the specificities of its clientele with in particular expectations in terms of organic products, of French origin and seasonal products in particular. And at Carrefour, we are talking regarding a low-cost model – around 10% lower than the market.

Enough to convince the town hall…and French consumers. Because the French Atacadão will not look like the Brazilian. Commissioned by Alexandre Bompard to pilot the concept in France, Noel Prioux knows Brazil well (among other places) for having managed Carrefour in this country for four years. ” We are not exporting a concept, but a method “. Namely a way of buying, all year round, to take advantage of opportunities, with a lot of direct purchases (around 40%). The offer will be different for the simple reason that the market is ” more sophisticated than in Brazil to quote Noël Prioux. In France, Brazilian cash & carry will offer a larger range of fresh products (fruits and vegetables, meat, bakery), organic products, but also an area of ​​seasonal products (Christmas, back to school, garden, etc.) which does not exist not in Brazil. The Carrefour own brand (33% of sales in value today in France) will also be maintained. Finally, Noël Prioux promises a store friendly and warm“. All this will be to be discovered in a few months… in Aulnay-sous-Bois.

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