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Carrefour uses its ‘low cost’ supermarket to reduce costs

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Carrefour has implemented cost reduction as a discipline. More than a year ago, it established the ‘2022 Plan’, through which it intends to save 2,000 million euros per year by boosting the online channel and eliminating some hypermarkets. But now takes another step. To boost its policy of cuts Carrefour will implement in France the anti-crisis model that premiered in 2012 in Spain – Supeco supermarkets – and that here have not finished curdling.

Supeco was established in 2010, but it wasn’t until 2012 when the first one opened in Spain, specifically in Seville. Since then, Carrefour has added a total of 23 establishments in Spain, the vast majority in Madrid and Andalusia. There are also 15 stores in Romania, two in Poland and one in Italy.

Carrefour promotes its plan of cuts and exports to France Supeco, the Spanish version of the low-cost supermarket supermercado ’

This format offers a maximum of 2,500 items (approximately 10 times less than a conventional supermarket) that are organized as if it were a warehouse: the products are presented in cardboard boxes or directly on pallets. They can be purchased individually or in large quantities at very cheap prices. They are a kind of cash & carry located in spaces of 1,500 to 2,000 square meters and reminiscent of the beginnings of items such as Lidl, which saved on decoration and image.

“The cost discipline is improving with operational efficiencies, with staff cuts that create a more agile aspect in the organization, but we still have to see a significant improvement in margins,” Bloomberg analysts explain. The reason why this low-cost business model is the one that Carrefour is interested in now to attract more customers for low prices. In addition, it does not require large investments. At the moment it will open in September two Supeco in France.

Source: merca2.es

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