Leading retailers review: Carrefour, Walmart, Tesco, Metro

Date : 27 October 2016

We look at what's been happening at Carrefour, Walmart, Tesco and Metro during the third quarter of 2016.

Carrefour: e-commerce, private label

  • Carrefour reported Q3 sales of EUR21.8bn, up 3.6% excluding petrol. International sales were up 4.5% on a like-for-like basis
  • Carrefour Taiwan launched a digital voucher service called Carrefour Ticket Xpress and updated its mobile app with various services
  • The retailer launched a private label milk brand in September under the label C'est qui le patron?! (Who's the boss?!). The milk will be sold at 99 cents per litre with producers receiving 39 cents. Consumers set the price in an online questionnaire
  • Carrefour and Auchan's mobile electronic wallets, Wa! and Fivory, are merging into a new app which enabling customers to pay in one single movement, both in-store and online
  • Carrefour launched a one-hour delivery service in Paris. Customers ordering from Livraisonexpress.fr can choose a half-hour slot between 09:00 and 22:00 in the first to sixth, tenth, eighteenth and twentieth districts of the city
  • Carrefour China said it will concentrate on convenience stores for the remainder of 2016. It plans 40-50 convenience stores in Shanghai and around 14 Carrefour Easy stores by the end of the year 
  • In Greece, Sklavenitis entered into a rescue deal for Carrefour's local franchise partner Marinopoulos. The stores will take on the Sklavenitis banner   

Walmart: remodel plans, e-commerce

  • Walmart is relying on remodel plans to be its new growth engine. We look at what it's doing and why, here
  • Walmart's total revenue increased by 0.5% to $120.9bn in the second quarter. The two key standout figures are the improvement in comp store sales in the US, reflecting two years of positive results, and the uptick in its e-commerce business
  • Walmart acquired US-based online retailer Jet.com, as it builds a stronger position in e-commerce. It has also increased its stake in China's JD.com
  • South-African business Massmart's interim statement for the 26 weeks to June 2016 said it expects earnings to rise strongly, despite a clear slowdown in the country's economy
  • Walmex reported net sales up 10.8% for Q3 2016. Same store sales and e-commerce were important factors in the performance
  • Walmart is upgrading existing stores and opening new outlets in the southern Chinese province of Yunnan
  • Dollar General completed the purchase of 41 former Walmart Express stores in July

Tesco: layout changes, price-checking initiative

  • Tesco's UK and International divisions grew both volume and value sales in H1 2016
  • Tesco has introduced a price-checking initiative against Argos, ahead of the peak Christmas trading period
  • The retailer has started trialling a digital receipt system called Tap&Tag in two UK stores
  • Tesco has extended Project Reset to include Express and One Stop stores. In another phase of the project, Tesco is making major changes to the layout and ranging of all 900 Extra, superstore and Metro stores
  • In Thailand, Tesco is introducing online shopping kiosks in some Express and Talad outlets outside Bangkok, to try to get customers further away from the capital to try the service
  • Chief customer officer Robin Terrell is leaving Tesco in October, after fewer than two years in charge of marketing
  • In India, Tesco is relaunching its Star Bazaar hypermarkets to concentrate more on groceries and apparel

Metro: improved cash and carry results, expansion plans

  • In the fourth quarter, total sales fell by 0.5%. However Metro Cash and Carry reported its strongest performance of the year, with like-for-like sales up in the vast majority of countries
  • Metro'sQ3 results showed like-for-like sales in line with the previous year's, and positive food sales from the cash and carry business
  • German e-commerce business Emmas Enkel closed its online store at the end of September. Metro, which majority-owns the brand, has yet to make any announcements about its future
  • In India, one of its priority markets, Metro said it wants to open 50 stores by 2020 and make its existing outlets work harder. It is also piloting online services in Jaipur
  • Following TCC's acquisition of Metro Vietnam at the start of 2016, Mega Market Vietnam (Metro's new name) intends to expand its wholesale network in Thailand
  • Customers at Metro China have seen private label from South Korean retailer E-Mart in stores since September. Also in China, Metro opened its first 'green' store, making use of clean energy like solar and wind power

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Catherine Ellwood is an analyst at IGD. She is responsible for research into Latin American and European FMCG markets and retailers.
@IGDLatinAmerica