Carrefour, a French international hypermarket chain, is the largest hypermarket chain in the world today in terms of size, the second largest retail group in the world in terms of revenue and the third largest in profit after Wal-Mart and Tesco. From 1957 to today, Carrefour expanded to thousands stores from only one at the suburban area in France. The revenue of the company has sharply increased. In 2005, Carrefour Group announced 90 billion dollars revenue and was ranked No. 22 among global 500 companies in the "Fortune Magazine". Nowadays it is more and more competitive between the world retail companies, how does Carrefour achieve such excellent results?
First, sell on a large scale is very helpful for increasing the revenue. Carrefour group covers not only food, but also general merchandise, even cloth. Various kinds of goods are a huge attraction to consumers. Second, expanding geographic reach is also the reason for the increasing revenue. By now, Carrefour has stores in 30 different regions. This makes Carrefour withstand regional economic fluctuations. Also, low price is always the key to Carrefour's success. Carrefour has been working through various channels to control and reduce costs. Carrefour has signed the contract with suppliers that they will settle the account every 60days. They use the suppliers' funds to circulate goods. As a result, Carrefour's will spend less current funds itself. Thus save the capital costs of Carrefour Group. That's why that Carrefour has low price to attract public: because the company has fewer costs.
Carrefour Group's excellent achievement is an example of how successful retail companies make money. In the competitive retail industry, any company that wants to make money should be able to take a panoramic view of the situation.
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