How the Carrefour network is growing

The French supermarket chain Carrefour continues its re-entry into the Greek market, steadily, methodically, and sometimes even silently, with new, flexible concepts. And now it's opening a new Express store at Modiano Market in Thessaloniki.

Retail & More, the Greek company that undertook last year to reintroduce the French brand to the Greek public, is investing in the intensification of its plan to develop stores under the Carrefour brand this year. The company, which belongs to the AVE group, owned by Nikos Vardinoyannis Vardinoyannis, has set a target of opening 20 new Carrefour stores in Greece, without even ruling out further development of the network through the strategy of acquisitions.

Carrefour's presence in Greece

Globally, the Carrefour group had a turnover of $90 billion in 2022 and a presence in more than 30 countries. The company started operating in Greece in 1999, exited the domestic market in June 2012, and sold its 50% stake in Carrefour - Marinopoulos to the Marinopoulos Group. The reason why the French chain chose at the time to exit was the limited growth potential of Greece back then. At the end of March 2017, the last Carrefour signs were finally removed, marking the next day and the absorption of the Marinopoulos Group by the Sklavenitis Group.

Focus on individual brands

The new Retail & More's operating model is based on the strong retail "know-how" of supermarkets and the fast-moving consumer goods (FMCG) sector, on high-quality services and products, but also on diversity.

In this context, the business model forecast states that in Greece, the current Carrefour Express, Carrefour Market, Carrefour Bio, and Supeco brands are to be developed.

In fact, following the example of the convenience stores that are particularly flourishing in urban centers, and especially in Athens, we are about to see an additional model, the fully automated Carrefour Flash 10/10. This is a store that will have no cash registers and payment will be automated, as is the case with the cashierless stores created by Amazon abroad. A similar store, and the first of its kind, was created by the French supermarket chain in November 2021 on Paris' Rue Parmentier.

A dynamic growth plan

For 2023, the company has intensified its development plan for Carrefour stores. The maturation of the stores that started operations in 2022 has been incorporated into the existing plan. Among other things, it is planned to open 20 new stores, all of them franchised, with the greatest emphasis on tourist areas and the Greek periphery.

The AVE group, to which Retail & More belongs, is at the same time examining the exploitation of opportunities for possible acquisitions should they arise as a consequence of the concentration of the sector. It is a way to grow faster, beyond organic growth, by integrating point-of-sale stores into the Carrefour network and achieving sales growth, and strengthening the chain's footprint.

And PL from Greek producers

An important strategic point for Carrefour's development is the supply of private label products from Greek producers - an operating model on which Lidl Hellas has been based with highly successful results. And it seems to be working, provided that the emphasis is on quality Greek products, from selected producers and with the required packaging.

Among the key points of operation and strategy for Carrefour in Greece is also the representation and distribution of products (food and beverages) on behalf of third parties. The AVE group, through its newly created subsidiary Retail & More, has also entered the wholesale of consumer products - including food products - seeking more profitable activities that will offer better margins and stronger cash flows.

Network of stores with a common corporate identity

Among the immediate objectives of Retail & More and its CEO, Vassilis Stasinoulias, is the creation of a new nationwide network of stores with a common corporate identity, where, among other things, Carrefour private label products will be available, high-quality products and top customer service will be provided.

The effective implementation of the AVE Group's Master Franchise Agreement with Carrefour, in combination with other moves, is considered one of the cases where the Group should give priority in order to support the development of its activities as a whole.

Besides, the most important development in the group's business activity concerns the implementation of the Master Franchise Agreement with Carrefour and the investment in infrastructure such as computer systems, logistics services, and human resources. In addition, a new quality control framework was implemented for the products handled.

The first retail stores opened in the summer of 2022 under the franchise method. Currently, 22 stores are operating in various regions of the country, with the most recent addition to the network being Carrefour Express in the renovated Modiano Market in the heart of Thessaloniki. Retail sales of the franchise stores exceeded EUR 7.5 million during the months of operation in 2022.