家乐福销售策略


    家乐福销售策略
    Similarlyin those countries where Carrefour ’s growth is
    based on a multiple format setupit was organized so as to
    best make use of the Group ’s local resourcesHence in
    Francethe new logistic organization for supermarkets
    and convenience stores will result in significant economies
    of scale for both formats
    In Brazilthe hypermarkets and supermarkets ’manage
    mentprocurement and marketing resources were pooled
    to further boost sales
    Wherever the Carrefour Group does businessits stores
    have further moved its market positioning towards the
    discount end through a policy of low prices and large
    scale promotionsThe banners concerned by the con
    version to the euro locked in their prices through May
    2002 and maintened a freeze on own brands over the
    whole yearIn Greecefor examplethe prices of over
    1000 products were frozen and the budget items
    prices were maintained through December 31
    The price positioning was supported by many promo
    tional campaignsIn the first halfCarrefour won back
    market share in Brazil by conducting three short promo
    tional campaigns a weekIn the second halfthe group ’s
    40
    th
    Anniversary offered a worldwide opportunity to dis
    play the competitive nature of the product rangeOther
    international promotions such as the ones in countries
    A firm positioning in discount
    Carrefour ’s priority is for each of its stores to set the
    benchmark in retailing among its peersIts stores provide
    all of the benefits of conveniencebroad selection and
    price under one roofwhich only a worldclass Group can
    provide
    Efforts made in 2001 to pool knowhowlogistics tools
    and to group purchases have paid offThe gains derived
    allow for aggressive discounting while increasing the num
    ber of innovations
    In Europethe synergies achieved by FranceItalySpain
    and Belgium boosted sales in their storeswhich managed
    to maintain a very aggressive price positioning compared
    to the average for the market
    These synergies also benefited from the international
    deployment of product rangesSpain saw the introduc
    tion of 444 Carrefour product ranges and Italy 280
    Meanwhile1400 retailer brands took the Carrefour
    name in BelgiumThe Dia brand was introduced in France
    thereby giving Ed the benefit of Dia Spain ’s purchasing
    clout
    In the nonfood sectorCarrefour Spain successfully intro
    duced its textile knowhow in Greece and Italythereby
    resulting in a net sales gain in these locationsMeanwhile
    Italy began to step up its role as a caterer for its European
    neighbors
    Optimizing resources through synergies
    14
    During 2002our Group continued to win market share based
    on strong sales momentum and many new store openings in the
    30 countries where we have operationsWe enhanced the appeal
    of our banners and built customer loyalty with our strong
    discount positioning as well as our focus on innovation and
    qualityThe pace of expansion picked up with the addition of
    963000 square meters of sales space in 2002 under the Group ’s
    banners compared to 150000 square meters in 2001Carrefour
    also enjoyed the first fruits of its multiple format strategy in
    Western Europe and Latin Americapassing on the gains derived
    from pricing synergies to the greater benefit of consumers
    Because we put the customer firstwe have systematized
    the implementation of a program for longterm growth
    that encompasses the safety and quality of our products
    environmental protection and a commitment to ethics and our
    employeesLastlyto support our expansion and provide the best
    possible service to our customersthe Group hired a total of
    70000 new employees in all its banners in all countries
    Daniel BernardChairman and Chief Executive Officer
    OUR STRATEGY
    S T E P P I N G U P T H E O F F E N S I VE
    Make consumer products accessible to the greatest number of peopleCarrefour is working to achieve
    this goal every day by tailoring its products and concepts to consumers ’needs and expectations
    In 2002this uncompromising approach paid offThe Group grew its market share in every country
    where it does business through an aggressive pricing policya revamped marketing program combined
    with quality products and a successful customer loyalty program
    15 Stepping up the offensive Our strategy
    Brazil China Poland France
    brandpresent in 9 countries with 815 product
    references in 2002
    The clientele appreciates this commitmentThe sales
    volumes attest to the role Carrefour plays in making
    quality accessible to all
    Stimulated by low pricesstores have found effective and
    inventive tools to drive the sales momentumThe Group
    has multiplied innovations by introducing new concepts
    in all of the formatslaunching new product lines (like
    the J'aimeline)and increasing the scope of its services
    Innovation to make stores increasingly
    appealing
    involved in the World Football Cuphelped to boost
    the stores ’financial performance
    Food quality and safety are one of the Group ’s ongoing
    prioritiesThis concern has resulted in the creation of
    Carrefour Quality Lines supply networkten years ago
    With 250 linesincluding 118 in Francein partnership
    with 40000 farmersthe program has now attained an
    international scope13 countries are developing their own
    lines and the volume of trade among the countries is high
    and constantly growingThe Group supplemented this
    offering four years ago by introducing the Carrefour Bio
    Quality products within everyone ’s reach
    In Europenetwork renovation continued in GreeceIn
    Francea major modernization effort was begunaimed
    at implementing all of Carrefour ’s new concepts
    throughout its hypermarketsTwenty stores were reno
    vated in 2002
    The effort to tailor products to different consumer targets
    continuedThe Group revamped 280 Shopi and
    8 à Huit convenience stores in France to meet the needs
    of a clientele seeking quality and friendlinessIn all the
    countries where Carrefour does businessthe Dia banner
    supported the growth in demand by adding to its sales
    area and increasing the number of its listed products
    Growth in store brandsretailer brands and
    price leaders
    Carrefour offers a wide and varied range of product
    Multiplying new concepts
    Carrefour made significant capital expenditures in 2002
    to reconfigure its stores to make them more attractive
    and improve customer serviceReorganized sales areas
    and product staging make the best of the Group ’s vari
    ous areas of expertiseThis applies to both the food and
    nonfood areas in hypermarketsto fresh foods in super
    markets and convenience stores and to the management
    of product lines in hard discount stores
    The Group continued to modernize its networksIn
    Argentina80 supermarkets were brought up to stan
    dards and now bear the Norte bannerIn Asiamany
    stores adopted new concepts for fresh foodsthereby
    gaining a huge competitive advantage over their main
    rivalsthe street marketsIn Thailand60of the store
    network was remodeled following these principles
    16
    Reflets de France N °1 J ’aime
    Firstline Carrefour
    17
    Destination Saveurs
    Stepping up the offensive Our strategy
    lineswhich are often updated in both foods and non
    foods
    It has thirteen excellent valueformoney store brands
    four of which have an international and multiple
    format scopeReflets in France and its offshoots Tierra
    Nuestra in SpainTerra d ’Italia in Italyand Souvenir du
    Terroir in BelgiumDestinations SaveursEscapades
    Gourmandes and Grand Jury
    Store brands represent a significant share of sales
    ranging from an average of 25up to 80for some
    product families in France
    In 2002the CarrefourChampion and Dia retailer
    brands continued to increase their share of their
    product lines in the various storesDia introduced from
    300 to 450 listed items in its various sales outletsIn
    Italy in particularthe network ’s growth was supported
    by the introduction of over 1600 listed items in all its
    formatsOf these420 were sold under the newly
    created Di per Di brand920 were GS products and
    280 were new Carrefour products
    Price leader products were also a powerful sales
    driver in 2002particularly in those countries most
    touched by the economic crisisIn particularthey were
    introduced into Norte ’s product range in Argentina
    Sales of the high quality Bio and Quality Lines
    continued to rise in those countries where they were
    introducedadvancing strongly in Western Europe with
    a significant thrust into Latin AmericaIntroduced in
    2002 by Carrefour in Francethe new brand of health
    food productsj ’aime has just been added to these
    linesIn the nonfood areathe Group has several
    brands that have an appeal similar to those of the
    specialized namesThe Tex clothing brand is one of
    France ’s leading textile brand
    Growing use of loyalty cards
    Loyalty cards continue to be increasingly usedToday
    21 million households in Europe own a loyalty card
    from one of the Group ’s banners and Champion ’s loy
    alty card Iris accounts for 75of its French salesIn
    Greecethe Kerdokarta loyalty card was introduced in
    September 2001 and was owned by 471000 customers
    in 2002 who generated 40of the store ’s salesIn
    SpainDia ’s customer loyalty program involves 6 mil
    lion cardholders and accounts for 82of Dia ’s sales in
    that country
    Additional customer loyalty tools were implemented in
    some countriesIn FranceChampion introduced Ticket
    +Champion in January 2002The program distributed
    coupons to all its supermarket shoppersgenerating a
    40redemption rate over the yearThe introduction
    of a similar tool in Poland boosted store traffic by 21
    Always more customer services
    Over the yearsCarrefour has added numerous practi
    cal and accessible services to its offeringThe Group
    has thus become a competitive player and the bench
    mark in several areas of activity outside of its core busi
    ness lineWith 88 offices located near its stores
    Vacances Carrefour is one of France ’s leading tour
    operatorsThe operation publicized its expertise by
    making a travel brochure available in Champion stores
    and has introduced an offer in its convenience storesIn
    2002the concept was exported to Greece under the
    Carrefour Travel banner
    The Group has also continued to expand its network of
    optician shops in FranceSpain and Italy and is under
    taking to develop a network of service stations in Spain
    In Europenetwork renovation continued in GreeceIn
    Francea major modernization effort was begunaimed
    at implementing all of Carrefour ’s new concepts
    throughout its hypermarketsTwenty stores were reno
    vated in 2002
    The effort to tailor products to different consumer targets
    continuedThe Group revamped 280 Shopi and
    8 à Huit convenience stores in France to meet the needs
    of a clientele seeking quality and friendlinessIn all the
    countries where Carrefour does businessthe Dia banner
    supported the growth in demand by adding to its sales
    area and increasing the number of its listed products
    Growth in store brandsretailer brands and
    price leaders
    Carrefour offers a wide and varied range of product
    Multiplying new concepts
    Carrefour made significant capital expenditures in 2002
    to reconfigure its stores to make them more attractive
    and improve customer serviceReorganized sales areas
    and product staging make the best of the Group ’s vari
    ous areas of expertiseThis applies to both the food and
    nonfood areas in hypermarketsto fresh foods in super
    markets and convenience stores and to the management
    of product lines in hard discount stores
    The Group continued to modernize its networksIn
    Argentina80 supermarkets were brought up to stan
    dards and now bear the Norte bannerIn Asiamany
    stores adopted new concepts for fresh foodsthereby
    gaining a huge competitive advantage over their main
    rivalsthe street marketsIn Thailand60of the store
    network was remodeled following these principles
    16
    Reflets de France N °1 J ’aime
    Firstline Carrefour
    17
    Destination Saveurs
    Stepping up the offensive Our strategy
    lineswhich are often updated in both foods and non
    foods
    It has thirteen excellent valueformoney store brands
    four of which have an international and multiple
    format scopeReflets in France and its offshoots Tierra
    Nuestra in SpainTerra d ’Italia in Italyand Souvenir du
    Terroir in BelgiumDestinations SaveursEscapades
    Gourmandes and Grand Jury
    Store brands represent a significant share of sales
    ranging from an average of 25up to 80for some
    product families in France
    In 2002the CarrefourChampion and Dia retailer
    brands continued to increase their share of their
    product lines in the various storesDia introduced from
    300 to 450 listed items in its various sales outletsIn
    Italy in particularthe network ’s growth was supported
    by the introduction of over 1600 listed items in all its
    formatsOf these420 were sold under the newly
    created Di per Di brand920 were GS products and
    280 were new Carrefour products
    Price leader products were also a powerful sales
    driver in 2002particularly in those countries most
    touched by the economic crisisIn particularthey were
    introduced into Norte ’s product range in Argentina
    Sales of the high quality Bio and Quality Lines
    continued to rise in those countries where they were
    introducedadvancing strongly in Western Europe with
    a significant thrust into Latin AmericaIntroduced in
    2002 by Carrefour in Francethe new brand of health
    food productsj ’aime has just been added to these
    linesIn the nonfood areathe Group has several
    brands that have an appeal similar to those of the
    specialized namesThe Tex clothing brand is one of
    France ’s leading textile brand
    Growing use of loyalty cards
    Loyalty cards continue to be increasingly usedToday
    21 million households in Europe own a loyalty card
    from one of the Group ’s banners and Champion ’s loy
    alty card Iris accounts for 75of its French salesIn
    Greecethe Kerdokarta loyalty card was introduced in
    September 2001 and was owned by 471000 customers
    in 2002 who generated 40of the store ’s salesIn
    SpainDia ’s customer loyalty program involves 6 mil
    lion cardholders and accounts for 82of Dia ’s sales in
    that country
    Additional customer loyalty tools were implemented in
    some countriesIn FranceChampion introduced Ticket
    +Champion in January 2002The program distributed
    coupons to all its supermarket shoppersgenerating a
    40redemption rate over the yearThe introduction
    of a similar tool in Poland boosted store traffic by 21
    Always more customer services
    Over the yearsCarrefour has added numerous practi
    cal and accessible services to its offeringThe Group
    has thus become a competitive player and the bench
    mark in several areas of activity outside of its core busi
    ness lineWith 88 offices located near its stores
    Vacances Carrefour is one of France ’s leading tour
    operatorsThe operation publicized its expertise by
    making a travel brochure available in Champion stores
    and has introduced an offer in its convenience storesIn
    2002the concept was exported to Greece under the
    Carrefour Travel banner
    The Group has also continued to expand its network of
    optician shops in FranceSpain and Italy and is under
    taking to develop a network of service stations in Spain
    Over its 40 years of existencethe relevance of its hypermarket concept has opened the
    doors of 30 countries to the GroupIn only ten of them does it have a multiple format
    presenceHenceCarrefour has a considerable growth margin for its two other global
    business lines —the supermarket and the hard discount storeIn 2002the
    multiplication of the number of store openings worldwide in all formats demonstrates
    the Group ’s efforts to resume its traditional growth rate
    18
    With a solid base in 30 countries spanning four con
    tinentsCarrefour began 2002 in a new expansion
    phase oriented on building upon its existing network
    and regionalizing its conceptsThe current objective
    is to exploit the growth potential that it gained in its
    major strategic deals concluded in recent years
    During 2002Carrefour opened 657 stores
    They are broken down into 43 hypermarkets
    77 supermarkets338 hard discount stores195
    convenience stores and 4 cash and carry stores
    This brought the total number of stores under the
    Carrefour banner to 9632The stores ’total sales
    area rose from 11816000 square meters to
    12780000 square metersSame store sales
    accounted for 28 percentage points of Carrefour ’s
    total growth rate
    In Europethe steppedup expansion program
    resulted in the opening of 17 hypermarkets and
    Over 600 openings spanning the continents
    71 supermarketsenabling the Group to win market
    share in all of the countries where it operates
    particularly those where it most recently entered
    In Latin Americathe Group plans to add to its
    existing network by playing on the diversity of its
    formats and targeting densely populated regions
    In Argentinathe economic crisis hampered the
    growth of hypermarket and supermarket names
    but favored Dia ’s advancewhose concept proved
    particularly appropriate in the tough economic
    and social environment
    In Brazilthe expansion in hypermarkets and
    supermarkets resumedThe Group was on the
    upswing in the rest of Latin America with new store
    openings in Mexico and ColombiaThe rate of
    growth is expected to accelerate in 2003 and
    extend to Chili
    Asia accounted for 42of new hypermarket
    openingsCarrefour opened a fourth hypermarket
    in Japanconfirming its plans to expand into a
    promising marketand it stepped up its intro
    duction in China ’s major cities
    FOCUSING ON EXPANSION
    with Javier Campo
    Director –Hard discount
    DIA is a rapidly expanding banner
    that has proved its resilience
    The hard discount store is a goanywhere format that is
    particularly well suited to the most difficult situations
    thanks to its formatlow prices and product linesDia
    is well established in seven countrieswhich leaves
    room for market penetration in the 23 others where
    the Group is establishedWe have an immense
    potential for growthbut our policy is to consolidate
    our network before committing ourselves in additional
    countriesOur principal task in 2002 was to build on
    our presence in those countries recently opened to us
    through a program of rapid expansionIn Brazilwhere
    we just opened 52 stores70 openings are planned in
    São Paulo for 2003In Turkey45 stores were added to
    the total numberIn these countries where retailing is
    ENCOUNTER
    19
    predominantDia succeeded in making significant
    market share gains thanks to its competitive pricing
    and quality store brandsWe opened 137 stores in
    Spainwhere we are the leader in mass consumer food
    products with 12of the marketand in France32 Ed
    storeswhich attests to this format ’s capacity for
    growtheven in a very mature marketCountries like
    PortugalGreece and even Argentina saw big increases
    in same store sales during the year
    Another task was to gain a successful entry into China
    We have been preparing to enter the world ’s biggest
    market for three years nowCarrefour ’s past
    experience in the region was a great help in advancing
    this projectOur first Chinese stores will have their
    grand openings in the second half of 2003 under
    the Dia Casa Dia bannerWe have plans to open
    50 stores in Shanghai and Beijing in 2003The goal
    is to have a total of 500 retail outlets in 2007 with
    locations in the country ’s major cities
    Focusing on expansion Our strategy
    20
    In most of the countries where the Group is established
    market shares are gained by either opening new
    retail outlets or adding to the existing ones
    Thereforein order to achieve its objectives and at the
    same time control costsCarrefour uses various
    growth paths to help it to advance while preserving its
    capital
    The future is in multiple formats
    In countries with mature marketssupermarkets
    hard discount stores and convenience store networks
    are the preferred paths for expansionOver 600
    retail outlets were created in 2002The longterm
    objective is to supplement the network of hyper
    markets by installing other formats so as to offer
    Pragmaticinnovative expansion means consumers a wide range of sales spaces and product
    lines that suit their lifestylesExpanding through
    multiple formats also speeds up the penetration into
    a country by profiting from the complementarity of
    the various formats
    Growth through franchises and partnerships
    Franchising is one of Carrefour ’s means of expan
    sionIt allows store banners to expand rapidly in a
    country while boosting their purchasing power and
    limiting their capital expendituresAt 15of
    Carrefour ’s consolidated salesthis method of ope
    ration is very well developed in Europe in all the
    formatsPartnerships also let the Group introduce
    its concepts in other countries by drawing on its
    partners ’expertiseThis is why we are now very
    successful in RomaniaTunisia and Egypt
    21
    Although Carrefour is worldclass in terms of size
    and the resources it allocates to growthit has cho
    sen to adapt its concepts to local cultures and
    consumer habitsIn this spiritit relies on a decen
    tralized organization formed from over 50 opera
    ting unitsEach one is responsible for developing a
    format and its product lines in one countryThis
    operating method relies on local initiativethereby
    providing for the best possible match of store confi
    guration with consumers ’expectations
    Over 90of the banners ’product lines are localif
    not regionalThusin Chinarice is sold in bulk and
    a special infrastructure has been set up to sell live
    fishturtlesfrogs and sea foodConverselyin
    Japanall perishable goods are carefully packaged
    since the Japanese have a deep aversion to products
    exposed to the open air
    A global concept tailored to local conditions Within a given countrythe banners aim constantly
    at gaining a better foothold in the local fabricTo
    foster this movementCarrefour has further decen
    tralized its organization in France by focusing its
    energies on the regionsIn Brazilthe regionaliza
    tion of purchasing and product lines has proved to
    be the best way of increasing sales
    Carrefour has traditionally been the biggest expor
    ter of hypermarkets in the worldintroducing the
    concept in France as far back as in 1963in Latin
    America in 1975 and in Asia in 1989Quite often
    the arrival of a new Carrefour store enables people
    to discover and appreciate a new form of commer
    ce by bringing them constant innovations and a
    choice of products that extends beyond the local
    offering
    Focusing on expansion Our strategy
    22
    Every yearCarrefour recruits around 70000 people around
    the worldThis is a real challenge for the Groupwhich must
    match the available skills with its needs in each of the geo
    graphic regions where it does business and at all levels
    Hencethe Group strives to conduct an outreach program in
    each country by forming alliances with schoolsmajor uni
    versities and employment agencies
    The Internet recruitment sitewwwcarrefourmyjobcom
    was launched in July 2002It provides substantial visibility for
    the human resources programand helps to enhance
    Carrefour ’s image as a good place to workIt is accessible
    directly or through the wwwcarrefourcom website and
    those of its various store namesWith this toolrecruiters can
    access job applications more quickly and at a lower costAs
    of December 312002the site had recorded 51200 hits
    with 27000 résumés filed
    Training is at the heart of the human resources
    programand serves as an ongoing pledge to our
    employees ’advancement and promotion
    To better carry out this pledgeCarrefour founded the
    Ecole Carrefour early in 2002 in order to instruct young
    trainees in the retailing business
    Training professionals
    Recruitment In 2002the company logged over 4200000 hours of
    trainingThe purpose of training is not only to raise the
    level of professionalism among employeesbut also to
    give them the means to develop within the company
    Company loyalty is the result of a policy based on listening
    to employees ’views while providing the means for effec
    tive career management
    Listening and participating
    Since 1996hypermarkets in France have systematized listen
    ing to employees to assess their satisfactionIt is a valuable
    tool for taking stock of the company ’s labor relations and it
    enables the Group to adjust its management style and draft
    action plans that factor in employees ’recommendations and
    commentsIn 2002the Listening to Employees tool was
    implemented in supermarkets in FranceBelgiumSpain and
    ItalyOver 8000 personsboth managers and employees
    used it to express their point of viewIn Belgiumthis initiative
    made it easier to integrate the GB store network within the
    Carrefour Group
    Employee profit sharing plans are another tool to build loyal
    tyIn 2002 in France175282 payments were made to
    the company savings plan representing a total investment of
    ¤131504317
    Building loyalty and motivation
    A FRAMEWORK F O R PROGRESS
    Carrefour ’s momentum would fade were it not for the deep commitment on the part of all
    of its employeesOne of the Group ’s key requirements is to develop their potential and foster
    their professional and personal developmentThis is why the human resources policy focuses
    on four main priorities
    support the company ’s growth through local recruitment in keeping with the strategy
    chosen for each country
    develop a loyalhighcaliber workforce through good communications and training
    manage our people so they may advance as their value to the company is recognized
    acquire the tools needed to spread our corporate culturewhich is founded on common
    valuesacross national borders
    23
    Career management
    In 2002the Group developed a career management tool
    designed for executives to support the career develop
    ment of its high potentials This tool provides for better
    management of careerscompensation and training
    A new expatriate management policy was also imple
    mented starting on January 12002Its purpose is to
    facilitate mobility and to establish uniform conditions of
    expatriationNew training programs were drawn up for
    expatriates during their departure abroad and to support
    them when they return
    In addition to the Internet recruitment siteCarrefour has
    acquired other valuable tools using new computer tech
    nologiesnotably to
    make training more accessibleThe online training site
    on shelf arrangement created in Brazil was deployed this
    year in Portugaland should be introduced gradually in
    various other countriesIn Francea module on making
    baguettes was created and tested and is the first step in an
    elearning approach designed to increase professionalism
    in Fresh Products
    improve inhouse communications
    The intragroupecarrefourcom website created in June
    2001 has quickly gained popularityThe number of hits
    Innovation
    more than doubled in one yearreaching an average of
    20000 hits per month since May 2002
    These tools are now necessary to better control costs
    They also provide communication in real timeand are
    thus more responsive
    In 2002the Carrefour Group formalized its Visionits
    Ambitionits Values and its PoliciesAs the Group entered
    a more intense expansion phaseit became essential to lay
    the foundation for a benchmark of values and behaviors
    that would apply to all countries and formats to strengthen
    the feeling of belonging in the Group and team spirit
    among all of its employees
    The effort was truly an act to found a Carrefour
    corporate culturethe product of different cultures and
    formalized to be understoodshared and applied by every
    oneIt is also a major strategic document that establishes
    the adherence to a certain number of policiesieClients
    AssetsPersonnelMerchandise and Moneywhich are
    essential for maintaining the service quality and competi
    tiveness which are the basis of the reputations of the
    Group ’s banners worldwide
    The circulation of Values and Policies was undertaken in late
    2002 from the top downAll employees should be intro
    duced to it in 2003
    Sharing common values
    BREAKDOWN OF THE WORKFORCE BY REGION
    As of December 312002 TOTAL396662
    20
    11
    69
    A framework for progress Our strategy
    AGE DISTRIBUTION
    As of December 312002 5
    13
    12
    18
    25
    Over 50
    40 to 50
    35 to 40
    30 to 35
    25 to 30
    Under 25 27
    010 2030
    GROUP WORKFORCE TRENDS *
    19972002
    1998 1999 2000 2001 2002
    WORKFORCE TRENDS BY FORMAT
    19972002
    0
    20
    40
    60
    80
    100
    92
    33
    55
    92
    63646061
    15192222
    15111110
    7677
    1997
    1998 1999 2000 2001 2002 1997
    Hyper Super Hard discount Others
    Europe Latin America Asia
    123437
    144142
    272160
    330247
    382821 396662
    *Excluding franchised stores
    24
    The Carrefour Group ’s sustainable development policy was
    formalized in 2001 around three areas of commitment
    quality and safetyrespect for the environment and social
    responsibilityIt is now fully integrated into the Group ’s busi
    ness plan
    During the year 2002 Carrefour
    communicated its framework both inhouse and outside of
    the companyparticularly through its participation in the
    World Environment Day (see box)Its first Sustainable
    Development Report received the French Ordre des Experts
    Comptables award for the best initial communication on
    sustainable development
    took into account the expectations of its various audiences
    with more frequent consultation and dialogue
    added further detail to its financial reports by including
    figures that will enable investors to compute key performance
    indicatorsone of the main expectations of our creditors
    (credit rating agenciesconsumer associationsenvironmen
    tal and societal NGOspublic authoritiesunionsetc)
    was included for the first time in a socially responsible
    market indexthe Dow Jones Sustainability Index (DJSI)
    Worldand in the portfolio of Scandinavia ’s biggest manager
    of socially responsible mutual fundsStorebrand
    The quality and safety of products sold in our stores is one
    of the Group ’s prioritiesnotably for our store brand food
    products and retailer brandsFor these itemsCarrefour
    works closely with its suppliers to ensure the traceability
    and their bacteriological quality of products as well as the
    implementation of the precautionary approach and a
    rapid recall procedureIn 2002Carrefour set up a Safety
    Observatory for its own store brand productsThe Group
    also developed a Quality Management Charta data
    processing tool that can predict and manage risks by moni
    toring controlled products throughout preparation
    Reducing the Group ’s environmental impact is another
    taskThe various stores are encouraged to enrich
    their product lines with environmentally friendly products
    in terms of their preparation and in their choice of
    packaging
    Further protecting the environment
    Quality and safety –a stronger system
    P R O M O T I N G R E S P O N S I B L E B U S I N E S S
    Carrefour has been committed to sustainable development for more than ten years now
    This year it took a further step to implement its frameworkThe Group bolstered the
    missions of its Quality and Sustainable Development Division and shored up its analytical
    toolsThe May 2002 publication of the first Sustainable Development Report served to
    communicate its commitments to all of its audiencesCarrefour ’s objective is to contribute
    at its levelto the quality of life of the people it servesand to integrate a sustainable
    development ethic in all the daytoday practices of its employees
    Drawing by a child during a contest organized
    by Carrefour in China
    25
    PRA C T I C ES
    For examplein 2002Carrefour France saved 484 metric
    tons of raw materials used in packaging and a packaging
    reference guide was drafted to encourage the spread of
    these good practicesAfter working with the WWF in
    2001 to promote sustainable forest management
    Carrefour drafted a special charter to implement this
    framework for its procurement of wood products
    To reduce the environmental impact of transporting our
    productsparticularly CO2 emissionsCarrefour estab
    lished a system of partnerships with all the players in its
    logistic network in 2002Several work orientations were
    laid outand included alternative modes of transport
    (river transportrail transportclean trucks)and the opti
    mization of loads and routesMany potential reductions
    in emissions were identified
    Our stores also continue to implement our program by
    striving to improve their sorting of wastelowering energy
    consumption and providing the public with reusable bags
    As a global economic playerCarrefour wants to build
    longterm relationships with its suppliers and partnersIn
    addition to a formalized commitment on their product
    quality and traceabilitythe Group insists on their involve
    ment in preserving the environment and adhering to a
    certain number of ethical principles
    The Group remains very vigilant with respect to labor con
    ditions in factoriesIn 1995Carrefour initiated a program
    of labor audits on its suppliers ’premisesand formalized it
    in 1997 with a written commitment charterBy subscribing
    to the charterits suppliers undertake in particular not to
    Economic and social responsibility
    use child labor or forced laborTo ensure that these com
    mitments are followedthe Group has implemented a
    largescale awareness and monitoring program with the
    International Federation of Human Rights Leagues
    Partner in local development
    Wherever Carrefour has a presenceit contributes to the
    economybe it through the jobs it creates or the partner
    ships it forms with local suppliers to develop regional
    productsThe Group strives to make consumer products
    accessible to all by encouraging local progressstimulating
    exchangestrade and economic and cultural freedom
    Hencethe Group tailors its product lines in developing
    countries to the local culture and current standards at
    CarrefourThis helps the local population to raise their
    local standards in terms of quality of liferespect for the
    environmenthygiene and local safety
    Social welfare has been a core value at Carrefour since it
    was foundedCreated in 2001the Carrefour
    International Foundation has been conducting actions in
    40 countries for two years nowWith an annual budget
    of ¤ 46 millionit intervenes especially in emergency or
    disaster situationsthe fight against poverty and exclusion
    while it supports medical and scientific researchThe
    Foundation supports numerous educationalliteracy and
    cultural programs aimed at the most underprivileged
    Social welfare is also expressed through many local and
    national initiatives that are conducted on the scale of the
    banners or companies
    Social welfare is a local value
    Promoting responsible business practices Our strategy
    2002 Sustainable Development Report
    available in June 2003
    On the Internetwwwcarrefourcom
    ContactRoland Vaxelaire
    FOR ADDITIONAL INFORMATION
    An international participation
    in World Environment Day
    Carrefour used the World Environment Day on June 5
    2002 to implement and communicate its commitment
    Stores representing all of the formats participated
    in 24 countries with over a hundred actions adapted
    to local issuesSome of these included raising
    the awareness of customers to water issues in Spain
    a campaign to vaccinate children against polio in Brazil
    and an operation to clean the Mediterranean
    sea and forests in Greece
    FOCUS
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