Carrefour’s new CEO is looking to turnaround the retailer’s lagging performance with the introduction of a major private label range, a management reorganization and new retail branding. CEO Lars Olofsson said the retailer plans to spend €600 million on price cutting, promotions and the new Carrefour Discount line.
The range of 1,000 low-priced products will focus on everyday products. The line has simple white packaging and will not be discounted. The first 180 SKUs are expected to be launched next month. This is the second time Carrefour launched a budget line to battle the discounters. In 2003 it introduced an extensive range under the Premiere Prix brand.
Carrefour also plans on restructuring its buying departments. The private label food management group in France will be coordinated more closely with the international buying department. For nonfood, the European buying divisions will be tied more closely with the Spanish division.
The retailer’s discounter division, Dia, has new senior management, changed its logo and launched a corporate website to communicate with consumers.
In Belgium, Carrefour is switching to a multi-format, single brand strategy. The GB name will gradually disappear and be replaced by Carrefour for hypermarkets, Carrefour Market for some supermarkets and Carrefour Express for neighbourhood stores.
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