Technology helps to boost Carrefour China profit
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Carrefour China has boosted its profit 11-fold according to documents filed in France, where its parent company is based. In China, Carrefour achieved €45 million operating income from its 245 outlets and online business, which it put down to investments in previous years in boosting its operations and profile there.
The company said it has transformed the commercial model of its Le Marche hypermarket chain, and boosted sales online. An investment in technology allowing facial recognition and Scan & Go had particularly paid off.
“China is a retailing laboratory for the world,” said Thierry Garnier, president and CEO of Carrefour China. “For Carrefour, China is a specific market that has helped us to learn and to understand the future.”
At the end of last year, Carrefour opened a flagship on Tmall which is expected to further improve sales.
Globally, Carrefour increased its sales by 1.4 per cent to reach €85 billion.
Questions & Answers
Q.What specifically led to Carrefour China's significant profit increase?
What specifically led to Carrefour China's significant profit increase?
The company attributed its profit boost to previous investments made in its operations and profile within China. Technology investments, specifically in facial recognition and Scan & Go, were particularly highlighted as paying off.
Q.How has Carrefour adapted its hypermarket business model in China?
How has Carrefour adapted its hypermarket business model in China?
Carrefour transformed the commercial model of its Le Marche hypermarket chain. This change, alongside increased online sales, contributed to the improved financial performance in the region.
Q.What was Carrefour's global sales increase compared to its China profit boost?
What was Carrefour's global sales increase compared to its China profit boost?
Globally, Carrefour's sales increased by 1.4 per cent, reaching €85 billion. This is in contrast to the 11-fold boost in profit reported specifically for its China operations.
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