Carrefour's Switches Strategy to Focus on Private Label

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September 21, 2010

Carrefour’s CEO plans to transform the company from a big-box retailer selling other companies’ brands into a leading consumer label of its own, according to a Wall Street Journal report.

Lars Olofsson said he wants Carrefour’s private label brands to be the least expensive anywhere they compete. He wants Carrefour to become to the grocery industry what IKEA Group is to furniture, according to the report.

"What's very important is price image. If I'm the number one preferred retailer… I'm the most likely to be the most profitable,” he said.

Separately, the company announced it will refurbish its largest stores in Europe next year, in a two-year, $1.95 billion project.

The new strategy is aimed at recapturing lost market share. For five consecutive years, Carrefour has lost worldwide market share in its core super centers and risks losing leadership in France, its home market, Euromonitor International told the Wall Street Journal.

Carrefour, the world's second largest retailer after Wal-Mart Stores Inc., said its 245 largest stores will be rebranded Carrefour Planet, while smaller stores (255) will continue to carry the Carrefour banner.

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