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Carrefour Italy has announced plans to begin using blockchain technology to improve traceability in the supply chain.

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UK-based Tesco and France-based Carrefour have announced an intention to enter into a long-term, strategic alliance. The retailers have said they expect the alliance will be formally agreed in the next two months.

Alliance to cover three areas

Carrefour and Tesco said the alliance would cover:

  • Strategic relationship with global suppliers
  • Joint purchasing of own brand products
  • Joint purchasing of goods not for resale

The retailers said they see the alliance being governed by a three-year agreement.

Explaining the rationale behind the alliance, they said they expect it ‘to improve the quality and choice of products available to their customers, at even lower prices thereby enhancing their competitiveness.’

Both stressed that each would ‘continue to work with supplier partners at a local and national level.

Chief executives’ statements

Discussing the alliance, Tesco’s chief executive, Dave Lewis, said: “ I’m delighted to be entering into a strategic alliance with Carrefour. By working together and making the most of our collective product expertise and sourcing capability, we will be able to serve our customers even better, further improving choice, quality and value.

Meanwhile, Carrefour’s chief executive, Alexandre Bompard, said: “This strategic alliance between Carrefour and Tesco is a major agreement as it combines the purchasing expertise of two world leaders, complementary in their geographies, with common strategies. This agreement is a great opportunity to develop our two brands at the service of our customers. This international alliance further strengthens Carrefour allowing it to reach a key milestone in the implementation of its strategy.

Looking for more insight on Carrefour and Tesco? Subscribers can see the retailer's respective profiles here and here.

Carrefour has opened a new ecommerce facility near Paris.

26,000 sq m facility

The 26,000 sq m distribution centre will supply the retailer’s Drive outlets in and around Paris. Located in Aulnay-sous-Bois, 14km north-east of Paris, it will serve around 50 Drive and pedestrian Drive outlets by the end of 2018.

Preparing for rising demand

The multi-temperature facility will first operate manually. In 2019, it will more than double the numbers of orders it can process daily from 3500 to 8000 when it becomes automated, as well as increasing the number of products available, from 13,000 to 20,000.

A crucial challenge

"Winning the town centre e-commerce battle is a crucial challenge for Carrefour. Thanks to this new platform, we're going to be able to supply our drive sales outlets in the Paris region, as well as our new pedestrian drives in the capital. The facility will be an additional asset for our Group and will enable Carrefour to take the diversity and quality of the service offering that it delivers to its customers to a whole new level", said Alexandre Bompard, Chairman and CEO of Carrefour.

13 November, London

With the theme of SUPPLY CHAINS FOR GROWTH, the interactive programme will allow you to create a day that will give you everything you need to enhance your food and grocery supply chain.

As part of its efforts to upweight its digital commerce efforts and better compete with rivals in France, Carrefour has made several strategic initiatives. We look at these and consider their part in the retailer’s 2022 Turnaround plan.

Head of digital activities spotlights ‘realities’ of Carrefour’s online presence

Talking in Les Echos, after the widely discussed announcement from Leclerc about its plans for Paris, Carrefour’s head of digital activities, Marie Cheval, has said that people need to be aware of the ‘realities’ of the present situation. Cheval said that while Leclerc’s statements were about what could happen in the future, as of March 2018, the reality was already different for Carrefour: it operates over 250 stores in Paris, most of which can already offer home delivery, while its fulfilment is only set to be improved by the launch of a new more efficient picking system.

Cheval said Carrefour was preparing for the introduction of a ‘walk up’ Drive site, which is a central part of Leclerc’s plans for the city, and is all part of the retailer’s digital transformation that it is undertaking now. She went on to say that Carrefour had ‘dithered’ for too long around the expansion of its Drive sites. To rectify this, it would look to open about 170 Drives, with 150 set to be adjacent to Carrefour Market supermarkets.

Investment in supply chain to run concurrent with shopper facing spend

Fulfilment is set to improve at Carrefour too, through the launch of an online dedicated warehouse in early April, which will improve efficiencies throughout the supply chain and help the retailer to keep costs under control better. The site will be opened in Lyon and enable its first pedestrian Drive to be opened in the city. A similar solution will be enabled following the opening of a warehouse in north Paris, which is already delivering to some of the retailer’s hypermarkets and supermarkets.

Cheval, as part of the interview, acknowledged that Carrefour had been concerned about the channel’s unprofitability for too long, suggesting that short term investment plans had limited opportunities to expand quicker. Some of the space being removed from its hypermarkets as part of the 2022 Transformation Plan will be converted to allow picking of online orders, which will add further scale to its online operations.

Carrefour and Google to create voice assistant

Carrefour and Google have announced they are to collaborate to create a voice assistant called ‘Léa’. To enable the service shoppers will need to link their Carrefour Drive or Ooshop accounts to Google’s Home Assistant. Once done, shoppers simply activate the service by saying ‘OK Google, talk to Carrefour.’ Shoppers can buy from Carrefour’s site and Greenweez, an organic store that it owns. The incorporation of the latter suggests that Carrefour is thinking ahead for as and when it makes further online purchases, which will be able to fulfilled through its supply chain, driving efficiency.

Announcing the partnership, Carrefour said: “Léa has been designed to make day-to-day life easier for our customers – they can use it to manage their shopping lists... using just their voice.” Léa will enable shoppers to find nearby Carrefour stores and add products to their shopping lists, which can be fulfilled either at a Drive site or through home delivery service, Ooshop.

Presentations

14/03/2018
Carrefour has announced a European first with a food blockchain initiative. It plans to extend the initiative to eight more product lines by the end of 2018.
03/02/2017
Learn how click and collect is developing in the UK, France and the US, and how you could create a seamless omnichannel experience for your customers.
19/08/2015
Growth in the online channel in France has been fuelled by click and collect and drive services. The switch in shoppers’ buying habits represents a transformational shift in the way they interact with retailers. Looking to benefit from the volume opportunity that the channel presents, Carrefour is on a journey to develop a profitable online fulfilment model, rather than merely adding scale.

In this presentation, we look at the key themes from IGD’s annual Supply Chain Summit and explore supply chain priorities for 2017 and beyond.

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A practical one day workshop for all roles in suppliers, to help develop your understanding of the vital part that supply chains play in underpinning FMCG businesses.