Restructuring / Turnaround Strategies Case Study

Case Title:

Carrefour S.A. - Jose Luis Duran's Turnaround Strategies

Abstract:
Carrefour S.A. is the world's leading retail supermarket chain. The company spans a wide network of hypermarkets, supermarkets, hard discounters, convenience stores and Cash & Cary outlets across 30 nations. France gives Carrefour nearly 50% of its revenues. But after it merged with Promodes in 1999, Carrefour's sales started stumbling. Its domestic market, France, became its biggest source of trouble as competitors ate into its market share. Till 2005, its sales went through a series of ups and downs. Carrefour's directors woke up to this sales chaos. And, in their plans to reorder the management, they promoted Jose Luis Duran as the new CEO.

Pedagogical Objectives:

• To analyse the factors responsible for the declining fortunes of Carrefour
• To understand the strategies undertaken by the new CEO, to turn the fortunes of Carrefour around
• To discuss whether Carrefour would be able to regain its lost market share, by beating its competitors.

Keywords : Hypermarkets; Restructuring / Turnaround Strategies Case Study; Supermarkets; Convenience stores; Cash & Carry; Wal-Mart; Tesco; Brands; Auchan; Casino; E. Leclerc; Declining sales of Carrefour; Pricing strategy in retail industry