Developing our ecosystem
Our multiformat and omnichannel structures are essential to Grupo Carrefour Brasil’s current business strategy. We believe in an even better integration between our physical stores network and our e-commerce platform, leveraged by our offer of financial solutions, adding value to our customers and increasing the opportunity of connection, loyalty and services to our clients, creating a dynamic and interconnected system.
We intend to increasingly consolidate our leadership position in the Brazilian food retail market through our strategy of organic expansion, focusing on high return and potential growth formats. In addition, we have been continuously assessing opportunities to acquire local or regional competitors who could help us reinforce our presence in certain regions, format and/or models in Brazil. The M&A strategy is not confined to the physical world; it may also involve small digital acquisitions if the asset in question fits into our ecosystem.
To advance our digital transformation, we created a new business unit in 2019, Carrefour eBusiness Brasil (CeBB). CeBB is responsible to centralize all digital actions that previously took place across various departments inside the Company. In addition to CeBB, the Company made strides in e-commerce by widening its selection of delivery options, product pick-up options, and digital payment options. In this context, investments in digital technologies and omnichannel services have enhanced visibility.
Developing a streamlined and open organizational structure to deliver excellence in customer service
The continued improvement in operations and enhanced execution are central aspects of our strategy and essential to differentiate us from our competitors, strengthens repeat-purchasing patterns, and generates productivity gains in our stores – all of which results in improved operational margins. We continue to work on initiatives designed to improve efficiency and productivity across all our business segments and formats. These initiatives include the implementation of (1) new store organization processes aimed at generating meaningful productivity and quality of service gains, including optimization of the shelf replenishment process, among others; (2) tools designed to rigidly control freight expenses and general expenses; and (3) improvements to our supply chain and distribution model, aimed at increasing product availability on shelves and reducing inventory levels. We remain committed to increasing our capacity and improving our product availability and customer service—all to ensure optimal productivity. Our ecosystem is data-rich, and we are currently maximizing data collection from our customers and operations to develop technology that will assist us in implementing new CRM initiatives that enhance the customer shopping experience by improving offer-customization, thereby increasing revenues.
Continuously reinforce our performance-based culture that encourages teamwork and contributes to talent attraction, retention, and development
Our culture is based on results achieved by setting well-defined goals. We also work to inspire our employees to embrace an innovative, passion-driven, collaborative work ethic that places a high value on customer satisfaction in order to make us Brazil’s favorite retailer. We believe that we foster a diverse, meritocratic corporate culture that attracts talent, supports integration, encourages teamwork, and promotes a sense of personal responsibility and pride at work. With this approach, we continue to develop our team of talented, highly qualified professionals and move it towards securing a leading position in the Brazilian food retail industry.
Aiming to lead food transition to ensure that all customers have access to quality food at fair prices.
In October 2018, we adopted Carrefour Group’s global strategy, Act for Food, in view of becoming a global leader in food transition. In this regard, we seek to broaden our healthy, high-quality product offerings while maintaining affordable pricing. We pursue the democratization of access to fresh products, aiming to increase the percentage of local products available at stores and increase to 20% the percentage of food private label products, enhancing our efforts to fight food waste, improving package sustainability, and ensuring food safety.
The Act for Food also aims to stimulate change at every stage of the chain, from partnerships with suppliers and other public and private agents to consumption habits and food production. An example of these efforts is the stimulus to long-term procurement with local producers, which allows these volumes to sustain partners’ investment to change their agricultural production practices. Acknowledging the strategic role played in the market, the Company has been taking advantage of its well-distributed stores, brand strength, and retail expertise to ramp up sales. Another innovative initiative the Company launched in Brazil was the “Satisfaction Guaranteed Commitment.” If a customer is dissatisfied with the freshness of any item purchased at one of our chain stores, said customer will either receive a refund or a replacement product of equal value.
In addition, we are promoting several other initiatives to improve our business sustainability, namely (i) joining the Food Traceability and Monitoring Program (RAMA), which was developed by the Brazilian Association of Supermarkets (ABRAS). RAMA ensures that fruits and vegetables are treated with agrochemicals according only to the highest standards. Carrefour has the highest index of analyses among all Brazilian food retailers. We are committed to (i) adhering to proper protocol for the use of agrochemicals; (ii) keeping our laying hens cage-free so that all eggs sold after 2028 derive from a humane, cage-free system; (iii) fomenting sustainable breeding practices in Mato Grosso through the launch of our joint initiative with IDH, The Sustainable Production of Calves Initiative ; (iv) ensuring a more sustainable fishery model by mapping the seafood supply chain in partnership with the Seafood Watch Program, and (v) supporting Gastromotiva to help integrate sustainability, social-inclusiveness, and health into our food culture.