Carrefour SA: history, ownership, mission, how it works & makes money

A Brief History of Carrefour SA

Carrefour SA, founded in 1959, is one of the largest retail chains in the world. The company's first hypermarket opened in Sainte-Geneviève-des-Bois, France, and was a pioneering step in the retail industry. By the end of the 1960s, Carrefour had established itself as a retail leader in France.

In 1973, Carrefour expanded its operations internationally, opening its first store outside France in Belgium. The 1980s marked significant growth, with the company entering several new markets, including Spain, Italy, and Brazil. By 1999, Carrefour became the world's second-largest retailer, trailing only Walmart, and operated over 10,000 stores across various formats, including hypermarkets, supermarkets, and convenience stores.

In 2000, Carrefour acquired the French retailer Promodès, which further solidified its position in the French market. The merger created a vast network of stores and allowed Carrefour to diversify its product offerings. As of 2021, Carrefour operated in over 30 countries and employed approximately 320,000 people, with annual revenues exceeding €78 billion.

Carrefour's financial performance has been robust over the years. In the fiscal year 2022, Carrefour reported a net income of €1.46 billion, reflecting a strong demand for grocery items, especially during the pandemic. The company experienced a significant increase in e-commerce sales, with online grocery sales jumping by >90%. As of late 2022, Carrefour's market capitalization stood at around €15 billion.

Carrefour has continued to adapt to evolving market trends, focusing on sustainability and digital transformation. In 2021, it announced a partnership with multiple delivery services, enhancing its e-commerce capabilities. The company's commitment to environmental sustainability is evident in its efforts to reduce plastic waste and promote local sourcing.

As of the end of 2022, Carrefour had approximately 12,000 stores worldwide, with a significant portion of its revenue coming from international markets. The company's strategic plan includes reducing greenhouse gas emissions by 30% by 2030, showcasing its commitment to environmentally friendly practices.

The competitive landscape has been increasingly challenging, with players like Aldi and Lidl gaining market share in Europe. Nevertheless, Carrefour has continued to innovate, and in 2023, it unveiled plans to invest €3 billion in enhancing its digital services, store modernization, and supply chain efficiency.

In terms of stock performance, Carrefour’s shares showed a fluctuating trajectory in the past year, reaching a high of €19.25 and a low of €14.10. The company’s price-to-earnings (P/E) ratio as of late 2022 stood at approximately 10.5, indicating its valuation relative to earnings.

Carrefour's journey reflects its resilience in the retail sector, adapting to market changes and consumer preferences while maintaining a strong presence globally. The company is positioned for continued growth in the retail landscape, driven by strategic investments and a focus on customer-centric services.

A Who Owns Carrefour SA

Carrefour SA, founded in 1958, is one of the largest retail chains in the world, headquartered in Boulogne-Billancourt, France. Ownership of Carrefour is distributed among various institutional and individual investors, with significant stakes held by key stakeholders.

Major Shareholders

As of the latest data, Carrefour’s market capitalization is approximately €14 billion. The company’s shares are traded on the Euronext Paris under the ticker symbol "CA." The share price has seen fluctuations, with a 52-week range between €11.93 and €18.25.

Stock Performance

In the fiscal year 2022, Carrefour reported revenues of approximately €88.71 billion, a 3.6% year-on-year increase. The net profit for the same period stood at €1.05 billion, reflecting a profit margin of about 1.18%.

• Market Cap: €14 billion
• 52-Week High: €18.25
• 52-Week Low: €11.93
• 2022 Revenue: €88.71 billion
• 2022 Net Profit: €1.05 billion

In terms of dividends, Carrefour announced a distribution of €0.48 per share for the fiscal year 2022, resulting in a dividend yield of approximately 3.3%.

Ownership Changes and Trends

In recent years, Carrefour's shareholding structure has been becoming more concentrated among large institutional investors. During 2022, there was a noticeable shift as certain hedge funds began to acquire larger stakes in the company, reflecting an increased confidence in Carrefour's growth strategy, particularly in the e-commerce sector.

The company has also been involved in extensive restructuring strategies to improve efficiency and adapt to changing market conditions, which has garnered interest from investors looking for long-term growth potential.

Carrefour SA Mission Statement

Carrefour SA’s mission statement revolves around its commitment to enhancing the daily lives of its customers through superior shopping experiences. The company emphasizes sustainability, quality products, and competitive pricing, positioning itself as a leader in the global retail market.

Carrefour operates with the guiding principle of "Acting for a better future." This is reflected in their commitment to responsible sourcing and promoting healthy, environmentally friendly consumption. The mission aligns with global trends focusing on sustainability and corporate social responsibility.

In terms of financial performance, Carrefour has demonstrated resilience and growth, even amid market challenges. For the fiscal year 2022, Carrefour reported revenues of approximately €80 billion, marking a growth of 5.7% compared to the previous year.

Furthermore, Carrefour's E-commerce segment has continued to expand, with online sales contributing to 11% of the total revenue, up from 9% in 2021. This shift illustrates Carrefour's focus on adapting to consumer preferences for online shopping.

Moreover, in line with its mission, Carrefour has committed to sourcing 100% of its own-brand products sustainably by 2025, a goal that highlights its determination to lead in responsible retailing.

Carrefour's mission statement not only focuses on customer satisfaction and sustainability but also aims to deliver value to shareholders. The company reported a net profit of approximately €1.5 billion for 2022, demonstrating strong operational efficiency and strategic investments.

Carrefour’s active global presence spans over 30 countries, with more than 12,000 stores worldwide, showcasing its expansive reach and understanding of diverse markets.

How Carrefour SA Works

Carrefour SA is one of the largest retail chains in the world, operating a multitude of hypermarkets, supermarkets, and convenience stores across various countries. The company primarily generates revenue through the sale of food and non-food items.

Business Model

Carrefour operates on a multi-format strategy that includes hypermarkets, supermarkets, convenience stores, and e-commerce platforms.

• Hypermarkets: Typically larger stores offering a wide variety of goods. As of December 2022, Carrefour operated over 1,500 hypermarkets in Europe.
• Supermarkets: Smaller than hypermarkets, these stores focus on food and everyday consumer goods. Carrefour had approximately 3,000 supermarkets globally.
• Convenience Stores: Positioned in urban areas for quick shopping needs. Carrefour operates around 1,000 convenience stores.
• E-commerce: With the rise of online shopping, Carrefour has made significant investments in its digital platforms. In 2022, online sales accounted for about 7.5% of total sales.

Financial Performance

In the fiscal year ending December 31, 2022, Carrefour reported revenues of approximately €81.3 billion, reflecting a year-on-year increase of 4.1%. The company's net income stood at about €1.1 billion.

Market Presence

Carrefour operates in over 30 countries across Europe, Latin America, and Asia. The French market is its largest, contributing about 45% of total sales. Spain, Italy, and Brazil are also significant markets for Carrefour, with revenues of €9.5 billion, €6.8 billion, and €5 billion respectively in 2022.

Supply Chain and Sustainability

Carrefour has a robust supply chain management system aimed at optimizing operations and ensuring product availability. The company has committed to sustainability initiatives, targeting a reduction of greenhouse gas emissions by 30% per unit of sales by 2030.

In 2022, Carrefour sourced approximately 60% of its products from local suppliers in Europe, reinforcing its commitment to local economies while enhancing supply chain resilience.

Technology and Innovation

Carrefour has invested heavily in technology to improve customer experience and operational efficiency. The introduction of self-checkout kiosks and mobile payment solutions has increased customer satisfaction. In 2022, Carrefour's investment in technology reached around €1 billion.

Stock Performance

As of October 2023, Carrefour’s stock price is approximately €15.30 per share. The company has a market capitalization of around €13 billion. Over the past year, Carrefour shares have seen fluctuations, with a 52-week high of €16.80 and a 52-week low of €12.50.

Carrefour's dividend yield stands at approximately 4.2%, with an annual dividend payout of €0.64 per share in 2022.

How Carrefour SA Makes Money

Carrefour SA, a leading French multinational retail corporation, operates through various segments that contribute to its revenue generation. The primary sources of revenue for Carrefour are hypermarkets, supermarkets, convenience stores, and e-commerce platforms.

Revenue Streams

In 2022, Carrefour reported a total revenue of approximately €81.2 billion, a reflection of its extensive presence in the retail market across Europe, Latin America, and Asia. The following table outlines Carrefour's revenue distribution by segment for the year 2022:

Carrefour's hypermarkets remain the cornerstone of its business model, accounting for the largest share of its revenues. In 2022, hypermarkets alone contributed over 58% of total revenue. The supermarkets segment also plays a significant role, contributing around 34.6% of revenue.

Cost Structure

The financial viability of Carrefour is also influenced by its cost structure. As of the end of 2022, Carrefour's operating expenses were reported at approximately €77 billion, including costs related to goods sold, labor, and administrative expenses. This resulted in an operating income of roughly €4.2 billion, translating to an operating margin of about 5.2%.

Digital Transformation and E-Commerce Growth

Carrefour has made significant investments in its e-commerce platforms. In 2022, online sales accounted for approximately €1.2 billion, marking a growth of 20% from the previous year. The company aims to enhance its e-commerce capabilities to adapt to changing consumer behaviors.

Geographical Revenue Distribution

The following table presents Carrefour's revenue by geographical segment for 2022:

France remains the largest market for Carrefour, contributing nearly 44.9% of total revenue. Meanwhile, operations in Latin America and Asia continue to grow, providing diversification and additional revenue streams.

Strategic Partnerships and Brand Development

Carrefour has entered various partnerships aimed at enhancing brand reach and product offerings. Collaborations with local vendors and the introduction of private label products have bolstered profit margins. In 2022, private label products accounted for around 30% of total sales.

In summary, Carrefour’s multifaceted approach, encompassing diverse revenue streams, strategic partnerships, and a strong presence in multiple regions, facilitates its financial growth and stability in the competitive retail sector.