We look at how CFAO, Carrefour’s franchisee in West and Central Africa, is expanding its Supeco and Carrefour Market formats.
CFAO to expand Supeco cash & carry format…
CFAO has announced it is rethinking its strategy to extend its reach. It plans to expand the Supeco cash & carry format to Senegal, Côte d'Ivoire and Cameroon. The franchisee hopes to open between eight to 10 Supeco stores by the end of 2019. CEO Jean-Christophe Brindeau, commented, “This represents an investment of about €30m this year”.
The Supeco format, already operating in Italy, Poland, Romania and Spain, will be first launched in Dakar, Senegal in Q1 2019. The stores will be between 750 sq m and 1,000 sq m and will stock 2,500 SKUs. Shoppers will be able to buy the products either as single items or in bulk.
The franchisee hopes that by expanding Supeco it will “address a more popular target”. According to the retailer’s research, it only reaches about 15% of the market, made up of high- and middle-income shoppers, with its existing stores. However, the Supeco format will help it to target 58% of the market. Brindeau added, “If we want to succeed in Africa in retail, we must operate a format like Supeco, which is attractive for all African consumers”.
…As it opens its first Carrefour Market in Senegal
Meanwhile, CFAO has opened its first Carrefour Market in Dakar, Senegal. The 800 sq m store is in the neighbourhood of Point E. It targets “the 3% of CSP + and the 12% of middle class” shoppers, but promises “the same price level as Auchan”.
CFAO hopes to sign contracts with local suppliers in the area and will focus on volumes and low prices. It also said it will “adapt our references as and when we need them, according to our suppliers and demand”.