Strategic Report

Carrefour's e-commerce business unit in France

Group members : DOUALA Halter-Frédéric, LEWIS Jayden,

MOUREAUX Néo, POLGE Raphaël, SABY Hugo, XIE Morgane

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I. Overview 2
a. Purpose of the report 2
b. Key highlights of the e-commerce business unit 3
c. Carrefour group 3
d. Vision and mission statements 4
II. External analysis 5
a. Products & services 5
b. Carrefour e-commerce target market 5
c. Macro-level trends (PESTEL) 7
d. Macro and industry-level trends impact on Carrefour's e-commerce 9
e. Competitive state and dynamics of the industry 10
f. Impact on Carrefour’s Competitive Position: 11
g. Strategic response to trends and dynamics: 11
III. Internal analysis 14
a. Ressources 14
b. Capacities 15
c. Value chain 16
d. Organizational structure 17
e. Corporate culture 17
f. VRIO 18
g. Current strategy 18
IV. Explaining and analyzing the business model 20
a. The BMC of Carrefour’s e-commerce unit in France 20
b. Internal and external value chains into the BMC 20
c. Linkages and interactions between the BMC components 23
d. Revenue streams and sources of cost 24
V. Strategic issues 27
a. Profitability and scalability of express and quick commerce 27
b. Omnichannel integration and customer retention 28
VI. Recommendations 31
a. Optimize real-time inventory management and synchronize channels 31
b. Strengthen omnichannel integration to boost retention and increase revenue 31
c. Accelerate customer experience personalization with AI and data analytics 32
Appendix 32
Bibliography 32

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 I. Overview

a. Purpose of the report

The goal of this work is to provide a detailed strategic analysis of Carrefour's e-commerce

business in France. As part of one of the world's major retail groups' digital transition,

Carrefour's e-commerce operation has become very important for its growth strategy. This

research focuses on the significant changes, operating issues, and growth potential in

Carrefour's e-commerce segment. It tries to evaluate the division's strategic posture and

involvement in the larger retail and digital ecosystem. It looks at how Carrefour is combining

its physical and digital retail operations to improve its competitive position in the French

e-commerce sector. This document also looks at how Carrefour effectively combines

technology and logistics to satisfy the continuously changing demands of the modern

consumer.

The e-commerce business of Carrefour is an essential part of its multi-channel approach,

combining both in-store and online services to offer a seamless shopping experience. The

French e-commerce sector is highly dynamic, with significant growth in online grocery

shopping. This trend has been further accelerated by changes in consumer behavior,

particularly in the aftermath of the Covid-19, which saw a dramatic rise in online shopping

for groceries and other products.

Our analysis will cover the following aspects :

- Carrefour’s digital infrastructure and online marketplace ;

- External analysis of their business ;

- Internal analysis of their business ;

- The Business Model ;

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 - The possible strategic issues for Carrefour ;

- Our recommendations.

b. Key highlights of the e-commerce business unit

Carrefour’s e-commerce business has seen significant growth over the past few years,

particularly with the rising trend of online grocery shopping. Here are some key figures that

highlight its performance:

- Online sales: Carrefour’s global online sales reached €5.3 billion in 2023, with a

substantial portion generated in France, which remains its largest market ;

- Market share: Carrefour holds a leading position in France’s online grocery market,

competing with other major players such as Amazon, Leclerc, and Auchan ;

- Digital acceleration plan: Under its Carrefour 2026 strategic plan, the company has

invested heavily in digital platforms, aiming to achieve a target of €10 billion in

e-commerce sales by 2026 ;

- Customer base: Carrefour’s digital platforms serve millions of customers, with over

90% of the French population having access to Carrefour’s online services, thanks to

its extensive distribution network.

- Sustainability and Innovation: Carrefour has made sustainability a cornerstone of its

e-commerce growth, reducing its environmental impact through eco-friendly

packaging, electric delivery vehicles, and optimized logistics.

c. Carrefour group

Carrefour Group is a global leader in retail, with operations in over 30 countries and a vast

network of hypermarkets, supermarkets, and convenience stores. Headquartered in France,

Carrefour has been at the forefront of the retail industry for more than six decades. Founded in

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1959 by Marcel Fournier and Louis Defforey, Carrefour opened its first hypermarket in 1963,

revolutionizing the retail industry by combining a wide range of products under one roof.

Carrefour’s core business focuses on the sale of food and non-food products through its extensive

store network and e-commerce platforms. In recent years, the company has embarked on a digital

transformation journey, focusing on expanding its e-commerce operations to meet the rising

demand for online shopping. Carrefour's business model integrates its physical stores with its

digital platforms, providing customers with a seamless omnichannel experience. This integration

allows customers to shop online and either have their purchases delivered to their homes or pick

them up at local stores (Click & Collect services).

d. Vision and mission statements

Carrefour’s vision is to become a global leader in food transition for all. This means

promoting sustainable practices across its supply chain, providing customers with healthier

food choices, and being a responsible retailer that cares for the environment and the

communities it serves. Through its e-commerce operations, Carrefour seeks to create a future

where online and offline retail converge, providing customers with convenience,

sustainability, and innovation.

Carrefour’s mission is to make quality food accessible to everyone while contributing to a

sustainable world. The company is committed to improving the customer experience through

innovation, ensuring that its e-commerce platform is efficient, user-friendly, and responsive

to consumer needs. Furthermore, Carrefour aims to lead the e-commerce grocery sector by

offering a wide variety of products at competitive prices while integrating digital tools that

enhance customer convenience and satisfaction.

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II. External analysis

a. Products & services

Products :

● Grocery & Food: Fresh food / organic products…

● Household & cleaning: Trash bags, Dishwashing liquid, sponges…

● Personal care & beauty: Toothpaste, deodorant, baby wipes…

● Electronics: Laptops, watches…

● Home & Garden appliances: Furniture / Tools

● Clothing: Mens + Women casual wear, active wear…

● Pharmacy & health products: Pain killers, vitamins…

● Toys & games: Board Games…

● Pet products: Food, beds…

● Sportswear and outdoor equipment: Yoga mats, weights…

● Automotive products: Car cleaners, bicycles…

Service :

● Delivery service: Home delivery, express delivery, scheduled delivery.

● Subscription services: Discounts, reduced delivery costs, exclusive offers.

● Customer support: Online customer service, After-sale services, refund & returns…

● Marketplace services: Third-party sellers can list their product at carrefour.

● Partnerships with local producers: Support of local farms & artisans by promoting

their products.

b. Carrefour e-commerce target market

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This graph depicts the main drivers of e-commerce sales. Looking at these drivers we’ve

created an analysis of the potential target market for carrefour e-commerce in France.

Price-Sensitive Shoppers :

Customers who are sensitive to pricing and are reluctant on spending and value saving

money.

Customers who often look for discounts, promotions, and deals available on Carrefour’s

platform.

Carrefour can attract these consumers through competitive pricing, regular discounts, and

loyalty programs like Carrefour+.

Eco-Conscious and Health-Focused Shoppers :

These consist of consumers who are concerned about sustainability, their health and wellness

and value organic products.

They prefer products that are organic, locally sourced, or have a low environmental impact.

Carrefour can target this segment with its range of organic groceries, bio products, and

sustainable packaging options.

Urban localisation and Busy Professionals :

People living in cities or urban areas may have limited time for traditional grocery shopping.

This could be due to busy life schedules regarding work and families.

These customers value the benefits of home delivery through services like Carrefour Click &

Collect.

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This group of target markets is especially relevant in urban centers like Paris, Lyon, and

Marseille, where people live a much faster paced life-style which drives the demand for

e-commerce..

Tech-Savvy Consumers :

These customers feel comfortable using digital platforms for shopping and are more likely to

use apps or online services for their grocery needs. A group of people from older generations

are less likely to purchase products from carrefour e-commerce purely because they aren’t

able to use technologies.

Tech-savvy consumers appreciate features like mobile-friendly interfaces, personalised

product recommendations, and fast delivery options. Enjoyable User experience.

Carrefour caters to this group through its digital platform, which includes a user-friendly

website and mobile app.

c. Macro-level trends (PESTEL)

Political :

- Regulations around e-commerce, data privacy (GDPR), and online consumer rights in

France.

- Government incentives for digital transformation and support for small businesses

through online marketplaces.

- Potential impacts of trade policies on imports, which could affect product availability

on the platform.

Economic :

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 - Economic conditions in France, such as inflation, consumer purchasing power, and

trends in online spending.

- The rise of e-commerce during and post-COVID-19, leading to increased demand for

online shopping.

- Economic stability and its impact on consumer confidence and spending habits in the

online grocery sector.

Social :

- In France in 2023, 26% of people are over 60, equal to one in four inhabitants. By

2040, it will be nearly one in three.

- E-commerce in France: The French spent nearly 147 billion euros on the internet in

2022 -> up 13.8% compared to 2021.

- Changing consumer behavior towards online shopping, convenience, and time-saving.

- Growing demand for organic, sustainable, and locally sourced products, which may

influence Carrefour’s product offerings.

- Demographic trends, such as an aging population or the digital habits of younger

consumers.

Technological :

- Improved & personalised User experience (UX), through technology (apps, websites)

- Advancements in e-commerce technology, such as AI, data analytics, and machine

learning for personalized shopping experiences.

- Importance of mobile shopping and the need for a seamless user experience on mobile

platforms.

- Integration of new delivery technologies, like drones or autonomous vehicles, for

faster delivery times.

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Environmental :

- “On average, e-commerce emits about two times less greenhouse gases (GHGs) than

physical retail stores (for the distribution stage of the value chain). (Lepault, 2024)

- Increasing emphasis on sustainability and reducing carbon footprints, which could

impact logistics and packaging.

- Consumer preference for eco-friendly products and packaging, driving changes in

Carrefour’s product range and delivery methods.

- Regulatory requirements around waste management and carbon neutrality that impact

Carrefour’s logistics.

Legal :

- Compliance with EU regulations on data protection (GDPR), affecting how customer

data is managed and protected.

- Labor laws related to e-commerce logistics and delivery workers.

- Legal frameworks for online transactions, returns, and refunds, impacting customer

satisfaction.

d. Macro and industry-level trends impact on Carrefour's e-commerce

Opportunities :

Leverage technological advancements to enhance user experience (UX) through AI-driven

product recommendations and efficient logistics.

Increase focus on sustainable products and practices to align with consumer demand and

regulatory trends.

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Build partnerships with local suppliers for exclusive product offerings, attracting customers

seeking regional specialties.

Risks :

Competitive pressure from Amazon and other local e-commerce players could erode market

share if Carrefour cannot maintain competitive pricing and delivery speeds.

Changes in economic conditions, such as inflation, may reduce consumer spending on

non-essential products.

Dependence on external logistics providers could pose risks if delivery times are not

competitive.

e. Competitive state and dynamics of the industry

Intense Rivalry : The French e-commerce market is highly competitive, with other

competitors like Amazon, Leclerc, Auchan, and specialized online grocery platforms

competing for market share. This rivalry drives a need for innovation, competitive pricing,

and strong brand loyalty.

Focus on Speed and Convenience : Customers in the French market value convenience,

which has made features like same-day delivery, click-and-collect, scheduled delivery and

efficient customer service crucial for competitive positioning.

Digital-First and Omnichannel Strategies : The trend toward digital-first shopping

experiences is strong, with many customers preferring online grocery shopping after the

pandemic. Carrefour’s ability to integrate online and physical stores with its click-and-collect

services provides an edge but requires continuous investment in digital infrastructure to keep

pace with competitors.

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Marketplace Dynamics : Carrefour’s e-commerce platform also faces competition from

marketplaces where third-party sellers list products (e.g., Amazon Marketplace). These

platforms offer an extensive range of products, posing a challenge to Carrefour’s ability to

attract sellers and customers.

f. Impact on Carrefour’s Competitive Position:

Need for Differentiation : Carrefour must differentiate themselves by offering a unique

combination of online convenience and offline support through its physical stores. The

quality of customer service, loyalty programs like Carrefour+, and focus on local products

can help Carrefour stand out.

Pressure on Pricing and Margins : To remain competitive, Carrefour may need to match

the aggressive pricing strategies of rivals, which could pressure margins.

Technology Investment : To maintain a competitive edge, Carrefour must keep up with

technological advancements in e-commerce, such as AI for personalization, efficient supply

chain management, and improving the user experience on its digital platforms. Lagging in

these areas could reduce its ability to attract and retain customers. Carrefour must remain as

early adopters of these technologies to gain competitive advantages on its rivalries.

g. Strategic response to trends and dynamics:

Differentiation through quality of service : Focus on superior customer service, such as fast

delivery options, flexible return policies, and personalized recommendations through data

analytics.

Enhanced Digital Presence : Invest in user-friendly mobile applications and online

platforms to take advantage of the increasing shift to mobile shopping.

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Sustainability Initiatives : Continue promoting eco-friendly practices, like reducing

packaging waste and offering more organic or local products.

Hybrid Model Optimization : Use the alliance between online and physical stores

(Carrefour Drive and Click & Collect) to create a seamless shopping experience and attract

customers who appreciate the flexibility of both options.

Strategic Partnerships : Partner with tech firms for logistics innovations (e.g., automated

warehouses, AI in supply chain management) to optimize delivery efficiency and reduce

costs.

In 2023, the e-commerce market in France generated approximately €160 billion in revenue,

confirming its position as the second-largest market in Europe after the United Kingdom.

This sector saw a 10.5% increase compared to the previous year, primarily driven by the

rapid evolution of online consumer purchasing habits.

Among the most popular product categories, food products represent a growing share of

sales, accounting for nearly 22%.

This figure aligns with the broader food segment, which represents about 20.4% of spending

in France. This reflects a strong trend toward the digitalization of food shopping in France,

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reinforced by the impact of the pandemic and the appeal of more convenient consumption

options.

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III. Internal analysis

a. Ressources

Carrefour e-commerce has various types of resources at its disposal to achieve its objectives.

Its goal is to become the leader in digital retail by 2026.

In tangible resources, we have physical resources such as infrastructures like the distribution

centers that handle the storage, preparation and delivery of products ordered from the

platform. The geographical position of these distribution centers enables us to offer faster

delivery services, as they are located closer to consumer areas, thus reducing transit time. We

also have physical stores where customers can pick up their click&collect orders. As far as

financial resources are concerned, Carrefour has its own funds, which enable it to improve its

e-commerce operations and pursue growth in this sector. Carrefour e-commerce's equity at

December 31, 2023 was 13.39 billion euros, an increase of 26% on the previous year. This

growth was achieved thanks to Brazil and France.

Carrefour's e-commerce business also has intangible resources, which are intangible in nature

and constitute a source of wealth for the company. Among these intangible resources, we

have the brand and the reputation of the Carrefour group, which has a strong notoriety.

According to Satista, at the beginning of 2024, the Carrefour Group was in second position in

the market share distribution of food retail groups in France. It held 20.6% of market share,

below E.Leclerc, which held 24.1%. Carrefour also owns intellectual and technological

property, such as its e-commerce platform, which is powered by software, algorithms and

artificial intelligence. It is used to manage orders and optimize the customer experience. The

brand has a rich database that enables it to propose personalized offers on the site according

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to customers' buying and searching habits, with the help of artificial intelligence. This

database helps build customer loyalty. It also has human resources such as employee skills

and team expertise. To expand its range of online products, Carrefour works with various

partners and improves its delivery services. It works with marketplaces such as Google

Shopping and Amazon. Carrefour also works with logistics partners such as Uber Eats to

ensure a better delivery service. Finally, Carrefour not only sells its own-brand products, but

also integrates local products and major brands such as Nestlé and Samsung.

b. Capacities

The collaboration with Google Cloud enables Carrefour to support its digital transformation

and e-commerce activity by modernizing the digital infrastructure. By collaborating with

Google Cloud, it enables Carrefour to have a more robust cloud infrastructure, enabling it to

adapt quickly to fluctuations in demand. Improving the digital infrastructure also plays a role

in the customer experience, such as during peak periods when the site is robust enough to

handle the different flows. Thanks to the artificial intelligence provided by Google Cloud,

Carrefour has been able to improve the online customer experience by recommending

personalized products and offering targeted promotions based on customer preferences. This

personalization enhances customer satisfaction.

Carrefour's logistics capacity is one of its strategic strengths in the e-commerce sector.

Thanks to its resources, Carrefour has distribution centers equipped with automation

technologies. These systems enable orders to be processed faster, minimizing human error by

robots and controlled by artificial intelligence. Carrefour works with a number of logistics

partners such as Colis Prive, Chronopost, La Poste and Uber Eats to ensure faster deliveries

by offering different types of delivery (standard or express). The resources of the Carrefour

group have enabled Carrefour e-commerce to have the capacity to anticipate changes with the

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help of a solid database. It also contributes to improving customer satisfaction with the

integration of artificial intelligence.

c. Value chain

Carrefour creates value by offering a fluid and omnichannel shopping experience, flexible

and fast delivery options, and personalized offers based on data analysis. Thanks to its

investments in technology, logistics and innovation, it maintains its competitive edge in the

e-commerce market, while meeting customers' expectations in terms of convenience, speed

and security.

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 d. Organizational structure

Here are the different departments that contribute to the evolution of Carrefour e-commerce

strategy. The departments below the Chairman are those that play a direct role in the digital

transformation. The departments below are necessary to support Carrefour's long-term

e-commerce strategy.

e. Corporate culture

Carrefour's corporate culture is based on the well-being of its employees. To do this, the

company implements the “Act for Change” program, which aims to modernize and simplify

the company's organization by focusing on simplicity, efficiency and innovation. It also

attaches particular importance to the health and safety of its employees through prevention

policies.

It also promotes work-life balance by offering flexible working hours. Carrefour's corporate

culture is also focused on its customers and innovation. Carrefour values innovation by

focusing on digital transformation and the adoption of new tools. The use of these tools

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enables it to better understand customer behavior by offering quality services such as product

delivery and personalization. It is important for Carrefour to have qualified employees to

ensure its long-term development, which is why it places great emphasis on continuous

training.This training enables employees to adapt quickly to changes in the market. To

achieve objectives more effectively, Carrefour encourages its employees to work together.

Finally, Carrefour also attaches importance to the environmental aspect by reducing its

carbon footprint.

f. VRIO

g. Current strategy

Carrefour's current strategy is based on a number of pillars to respond to changes in the retail

market and new consumer expectations.

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Carrefour has implemented a digital transformation strategy that has improved e-commerce

by offering different types of services to provide a better customer experience. Carrefour's

partnership with Google Cloud also plays a major role in improving the customer experience

by enhancing its infrastructure to better manage data and optimize processes. Leveraging this

data also enables a personalized experience to be offered with the help of artificial

intelligence. These tools enable it to better understand consumer behavior and propose more

tailored offers. Investments in its digital transformation have enabled it to automate its

distribution centers and optimize its supply chain, enabling it to reduce costs and improve

operational efficiency. Finally, to remain competitive, Carrefour relies on its own brands to

offer products at competitive prices.

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IV. Explaining and analyzing the business model

a. The BMC of Carrefour’s e-commerce unit in France

In the context of Carrefour's e-commerce unit in France, a complete business model would

cover the nine key elements of the Business Model Canvas :

b. Internal and external value chains into the BMC

Carrefour’s e-commerce business in France operates through a well-structured integration of

both internal and external value chains, ensuring efficient operations and a seamless customer

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experience. Internally, Carrefour focuses on optimizing its logistics operations, ensuring

smooth order preparation and shipping processes. This involves leveraging its existing

logistics infrastructure, which spans warehouses and physical stores, to efficiently handle the

movement of products from storage to customers’ doors. The real-time management of

inventory across its various locations is another critical element, ensuring that customers are

only able to purchase products that are available in stock, reducing delays and improving

overall service levels.

Additionally, Carrefour makes extensive use of data analytics to track customer behavior on

its e-commerce platforms. By analyzing online purchasing patterns and customer preferences,

Carrefour can tailor its product offerings, optimize its supply chain by anticipating demand,

and deliver personalized experiences through targeted promotions and product

recommendations. This use of online data allows Carrefour to stay competitive in a

fast-evolving digital retail environment.

On the external front, Carrefour collaborates with key delivery partners like Stuart and Glovo

to meet customer expectations for fast delivery. These partnerships are essential for ensuring

efficient and timely deliveries, particularly in urban areas where the demand for rapid

delivery services, such as express delivery within one hour, is high. By outsourcing last-mile

delivery to these partners, Carrefour is able to reduce its logistical overhead while

maintaining service quality and extending its delivery reach.

Moreover, Carrefour’s e-commerce operations are supported by technology partners that

provide the necessary infrastructure to run its online store. For example, cloud hosting

services allow Carrefour to scale its e-commerce platform during peak demand periods, such

as holiday shopping or promotional events, ensuring a smooth user experience. Additionally,

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payment security solutions provided by external partners help build trust among online

shoppers, further enhancing Carrefour’s digital footprint.

A significant component of Carrefour’s strategy is its omnichannel approach, which

integrates its physical stores with its online business. Through this model, Carrefour utilizes

its stores as distribution hubs, allowing for faster deliveries to local customers and reducing

shipping costs. The Click & Collect service, for instance, enables customers to order online

and pick up their purchases from a nearby store, offering a convenient alternative to home

delivery. This not only reduces the cost of logistics but also provides customers with greater

flexibility in how they receive their orders. By fulfilling orders from local stores, Carrefour

can optimize delivery times and reduce its reliance on centralized warehouses, thereby

enhancing operational efficiency.

The integration of these internal systems with external partnerships ensures that Carrefour’s

e-commerce operations are cohesive and streamlined. Orders placed online are seamlessly

processed through the company’s logistics and inventory systems, which determine the most

efficient fulfillment path—whether it’s from a central warehouse or a local store. Delivery

partners are then tasked with ensuring prompt deliveries, with real-time updates provided to

customers via Carrefour’s app or website.

By combining internal operational efficiencies with the external capabilities of delivery and

technology partners, Carrefour is able to maintain a highly scalable e-commerce model. This

model not only reduces costs but also enhances customer satisfaction by offering multiple

fulfillment options (such as home delivery or Click & Collect), fast service, and personalized

shopping experiences. Carrefour’s ability to leverage both its logistical strengths and its

digital transformation efforts positions its e-commerce unit as a key player in the French

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retail market, allowing it to stay competitive in the rapidly evolving landscape of online

retail.

c. Linkages and interactions between the BMC components

The components of Carrefour’s e-commerce business model are dynamically interconnected,

ensuring a seamless customer experience and operational efficiency. At the core of this

system are the e-commerce website and mobile app, which serve as the primary touchpoints

for customer interactions. Through these platforms, customers can browse products, place

orders, receive personalized recommendations, and access promotions tailored to their

shopping preferences. These customer-facing platforms are fully synchronized with

Carrefour’s inventory management systems, ensuring that the products displayed online are

up-to-date and available in real time. This synchronization is crucial for minimizing

out-of-stock issues and providing accurate delivery timelines, enhancing customer

satisfaction and trust.

Carrefour’s delivery services are also closely integrated with both its logistics partners and

internal operations. Once an order is placed, it is processed by Carrefour’s internal systems,

which handle the logistics of storage and order preparation, whether from centralized

warehouses or local stores. The processed orders are then handed over to external delivery

partners (such as Stuart and Glovo), ensuring timely and efficient deliveries. This close

connection between Carrefour’s internal logistics operations and external delivery partners

allows for a flexible and responsive delivery system, with options ranging from same-day

delivery to scheduled deliveries.

The value propositions that Carrefour emphasizes, such as fast delivery and convenience, are

directly linked to the efficiency of its supply chain operations. This supply chain is

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continuously optimized using data analytics, which helps Carrefour predict demand patterns,

adjust stock levels, and route deliveries more efficiently. The use of advanced analytics

allows Carrefour to maintain high service levels while controlling costs, ensuring that it can

meet customer expectations for speed and convenience without sacrificing profitability.

A key element that ensures the smooth operation of these interlinked components is

Carrefour’s human resources. Specialized teams within the e-commerce unit are responsible

for maintaining coherence between the digital experience (online ordering, customer service,

and app functionality) and the physical logistics (order processing, fulfillment, and delivery).

These teams ensure that the customer journey, from placing an order online to receiving it at

home or picking it up in-store, is as seamless and efficient as possible. This integration of

human resources is vital for ensuring that Carrefour’s digital and physical retail operations

work together harmoniously, reinforcing the company’s omnichannel strategy and ensuring a

consistent experience for customers across all touchpoints.

By ensuring strong linkages between its technology platforms, logistics operations, and

human resources, Carrefour’s e-commerce model operates as a cohesive and dynamic system

that maximizes efficiency and customer satisfaction.

d. Revenue streams and sources of cost

The main revenue streams for Carrefour's e-commerce business in France are driven by

multiple sources. First and foremost, product sales represent the largest share, encompassing

both food and non-food items. These sales are processed through Carrefour’s online platform,

where customers can shop from a vast selection of groceries, household goods, and specialty

products. Additionally, delivery fees contribute significantly to revenue. These fees vary

based on factors such as the size of the order and the speed of delivery, with premium options

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like same-day or express services often commanding higher charges. Another important

revenue stream comes from advertising and product placements on Carrefour’s e-commerce

platform. Brands can pay for prominent placement in search results or for special promotions,

helping Carrefour monetize its digital traffic.

On the cost side, logistics and distribution account for a major part of the overall expenses.

This includes costs associated with delivery services, warehousing, and the transportation of

goods from fulfillment centers or stores to customers. Ensuring fast and efficient delivery,

particularly with options like same-day service, requires a robust logistics network and

partnerships with delivery providers, which adds to operational expenses. Another significant

cost is technology infrastructure, which supports Carrefour’s website, mobile apps, and

backend IT systems. Maintaining a reliable and scalable e-commerce platform is essential,

especially during periods of high traffic such as sales events or holiday seasons. Digital

marketing is another critical expense, as Carrefour invests heavily in online advertising to

attract new customers and retain existing ones. This includes targeted ads on social media,

search engines, and within the e-commerce site itself, all designed to improve customer

acquisition and retention.

To ensure sustainable value creation, Carrefour focuses on optimizing several areas of its

e-commerce operations. One key priority is the optimization of logistics processes to reduce

costs while maintaining delivery speed and efficiency. By streamlining these processes and

utilizing data analytics, Carrefour aims to lower distribution expenses without compromising

service quality. Another focus is on reducing customer acquisition costs through more

effective and targeted digital marketing campaigns. By using personalized advertising based

on customer behavior and preferences, Carrefour can attract more relevant customers while

minimizing wasted advertising spend. Furthermore, Carrefour emphasizes increasing

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customer lifetime value (CLV) through the use of loyalty programs, both online and in-store.

These programs incentivize repeat purchases and foster long-term relationships with

customers, contributing to more stable and predictable revenue over time.

In 2022, Carrefour’s e-commerce operations in France generated over €2.3 billion in online

sales, marking a significant portion of its total revenue. This growing segment reflects the

importance of Carrefour’s digital transformation efforts, with a clear path toward profitability

as the company continues to scale its e-commerce platform and optimize its cost structure. By

maintaining a strong focus on logistics, marketing efficiency, and customer loyalty, Carrefour

is well-positioned to drive further growth and profitability in its e-commerce business.

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 V. Strategic issues

a. Profitability and scalability of express and quick commerce

Growing customer demand for rapid and easy delivery services is the driving force behind

Carrefour's plan to profit from quick and express commerce. The company currently offers

grocery delivery within three hours, and in some places as fast as fifteen minutes, thanks to

partnerships with platforms like Cajoo or Uber Eats and the development of its own

Carrefour Sprint service in partnership with Deliveroo. Carrefour's 2023 annual report states

that online grocery sales have increased by 45% and currently account for 12% of the

company's overall sales in France. Unquestionably, this strategy has increased Carrefour's

online presence and drawn in new clients, but it still faces significant obstacles in terms of

scalability and profitability.

Carrefour has set a lofty goal to reach €10 billion in gross merchandise value (GMV) by

2026, despite doubts about the fast commerce model's long-term viability. The company's

2023 sustainability report emphasizes its dedication to raising operational efficiency and

e-commerce profitability. Carrefour must, however, strike a balance between its consumers'

demands for reasonable prices and prompt delivery and the high expenses of maintaining an

advanced logistical system. Furthermore, Carrefour is under more pressure to maintain cheap

delivery costs while upholding good service standards due to competition from businesses

like Amazon Fresh and neighborhood grocery services that provide comparable quick

delivery choices. According to the company's competitive study, even if express services

have been successful in bringing in new clients, profit margins could be eroded by the fierce

pricing competition unless Carrefour can lower operating expenses or increase the quantity of

customer purchases.

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The fast commerce model poses substantial logistical obstacles to successful growth,

especially in areas with lower population densities. The concept is easier to grow in

metropolitan areas where client demand is concentrated but delivery costs are high. Carrefour

operates in a number of nations with different levels of urbanization, and its 2023 market

expansion plan emphasizes that last-mile delivery costs continue to be a significant barrier to

growth, particularly in rural areas. Because it is more difficult to justify the infrastructure

required for speedy delivery in less populous areas, Carrefour must carefully balance its

attempts to meet the growing demand in urban areas with the need to evaluate the financial

viability of expanding its express services into these areas.

Carrefour's success in enhancing inventory control, streamlining the supply chain, and

utilizing technology advancements to reduce delivery costs will be crucial to the company's

capacity to grow its rapid commerce operations. The CEO of Carrefour highlighted in a

recent interview how data analytics and machine learning can help the company optimize

delivery routes and cut expenses throughout its e-commerce operations. Cloud-based

technology and real-time data must be integrated for quick commerce to be scalable while

preserving quality and consumer happiness.

b. Omnichannel integration and customer retention

A crucial element of Carrefour's larger digital transformation initiatives is its omnichannel

strategy, which combines its online and physical platforms to provide a seamless shopping

experience. The potential of this strategy is demonstrated by the fact that omnichannel clients

typically spend 27% more than those who just buy online. Carrefour has made strides, but

there are still a number of important obstacles in the way of achieving the full potential of its

omnichannel strategy.

The synchronization of inventory and pricing across channels is one of the main obstacles.

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Dissatisfied customers may choose to shop at competitors as a result of a fragmented

customer experience. Customers may become irate, for example, if an item is discounted

in-store but not available online at the same price, or if stock levels vary between channels.

This problem was especially noticeable at Carrefour's quarterly assessment in 2023, when

disparities in in-store and online prices temporarily decreased customer happiness.

Additionally, customers may not be able to locate the same products in both physical stores

and online platforms due to differences in stock availability. Although the company has made

great progress, Carrefour's leadership recognized that maintaining uniform pricing and

inventory control across all channels remains a difficulty.

Technology integration presents a second difficulty. Carrefour's digital transformation plan

calls for a move to cloud-based technologies and the use of data to offer a more customized

shopping experience. Nevertheless, complete real-time data synchronization across

Carrefour's platforms is still a ways off. Because of this, operational inefficiencies continue to

exist, making it challenging to provide a genuinely cohesive shopping experience. For

instance, depending on whether they shop in-person or online, clients could not receive

personalized offers or real-time stock level updates. Although data centralization has

advanced, full real-time integration is still a work in progress. If Carrefour wants to reach its

goal of having 30% of its consumers be omnichannel by 2026, it must overcome three

technological obstacles.

Through its Carrefour Links platform, which uses data from 80 million customers globally to

improve marketing tactics and customer experiences, Carrefour is also working to boost

data-driven personalization. A key component of the business's upcoming customer

interaction initiatives was determined to be the platform. To guarantee that the degree of

customization that clients obtain online is reflected in actual stores, there is still opportunity

for development. One important issue that has to be addressed in the upcoming quarters is the

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disparity between personalization options available online and offline.

Retaining customers is the last obstacle. Carrefour's omnichannel approach has a lot of

promise to increase consumer loyalty, but it needs to be executed well to be successful. 97%

of omnichannel customers stay loyal after two years, per Carrefour's 2022 Customer Loyalty

Survey. However, sustaining this loyalty depends on making sure the experience is constantly

seamless and cross-channel integrated. Customers may choose competitors that provide a

more efficient experience if there are differences in pricing, customisation, or inventory

synchronization.

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VI. Recommendations

a. Optimize real-time inventory management and synchronize channels

Implement an advanced inventory management system that instantly synchronizes stock

between physical stores and the online platform. This integration will reduce discrepancies

between channels, improve product availability, and offer a seamless omnichannel

experience.

Enhanced stock visibility will prevent unexpected shortages and minimize losses from

canceled orders or returns.

For example, Decathlon successfully harmonized its real-time inventory, allowing customers

to check product availability both online and in-store, improving customer satisfaction and

increasing sales.

b. Strengthen omnichannel integration to boost retention and increase

revenue

Develop a unified customer experience that seamlessly combines physical and digital

channels, including synchronized promotions, loyalty programs, and purchasing options

across these platforms. Omnichannel customers spend on average 27% more than online-only

customers, making it crucial to maximise this opportunity.

Carrefour should take inspiration from Starbucks, which seamlessly integrated its loyalty

program across its mobile app and physical stores, boosting customer retention. Such a

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strategy would not only enhance loyalty but also drive repeat purchases and increase

customer lifetime value.

c. Accelerate customer experience personalization with AI and data

analytics

Invest heavily in artificial intelligence and data analytics to personalize the online shopping

experience. AI systems can better anticipate customer needs, offer tailored recommendations,

and thus increase conversion rates and upselling. Carrefour should follow this path by

integrating machine learning algorithms that analyze shopping behaviors and adapt real-time

offers for each user.

Appendix

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