Population and consumption

Spain is the fifth-largest economy in Europe and the eighth-largest worldwide, with a per capita income of around $30,000. The service sector (tourism etc.) is the leading source of income in Spain. There are 15.3 million households and 24 million dwellings. The Spanish lifestyle and mode of consumption are in line with those of a modern and dynamic society. Its 46 million inhabitants live mainly in the cities, which are concentrated for the most part along the coasts – in particular the Mediterranean coast – as well as in its capital Madrid (population six million) in the centre of the country. Ten percent of the population is made up of immigrants coming mainly from Latin America, North Africa and Eastern Europe. The unemployment rate is about nine percent.
 

Retail

In Spain the development of this sector remains at a high level in all of the store formats of modern commerce – hypermarkets, supermarkets, hard discount, e-commerce, specialists – which are managed by large national groups (El Corte Inglés, Eroski, Mercadona etc.) and international groups (Carrefour, Auchan, Ahold, Lidl etc.). Similarly, regional food distribution groups have a strong presence in their areas of influence. Over the past 20 years, the sector has experienced considerable growth and modernization due to significant property development taking place in cities and the expansion of commercial areas, as well as an intensive process of concentration. The Carrefour Group leads the sector and its market share – as measured by Alimarket in terms of food product sales area, all formats combined – is 17.3%, followed by Eroski with 13.1% and Mercadona with 12.6%. Carrefour is also the leader in the hypermarket format sector, with a food product sales area share of  42%, followed by Eroski (18%) and El Corte Inglés (11%).

TheCarrefour group in Spain

The company began its operations here in 1973, opening the very first hypermarket in Spain, in Barcelona. Its name was originally Carrefour, but was soon changed to Pryca. In 1976, the Promodes Group opened its first Continente hypermarket in Valencia and then, three years later, its first Dia discount store. In 1982, it launched the own-brand concept on the market. The two groups then represented the cutting edge of leadership and commercial innovation. The rest of the operators could only follow along behind. They merged in 1999. In 2000, the banners adopted a common name: Carrefour. The new group then had the largest market share in all three of its formats. In 2006, its supermarkets adopted the new banner Carrefour Express, and in 2007 local testing of the Carrefour City banner was carried out.

In Spanish households, the name Carrefour is a synonym for "hypermarket." The brand enjoys the best consumer awareness indices. Its strong position is based on modernity, proximity and discount, with seamless integration into the new environments it enters.

Formats: 

• CARREFOUR HYPERMARKETS - Their sales areas range from 2,500 sq. m to over 11,000 sq. m, and they are the driving force of large commercial areas. With an assortment of over 100,000 items in the largest centres, they maintain an intense level of promotional activity throughout the year.
  They offer consumers a wide range of innovative solutions in both food and non-food products, under one roof and at the best prices. They also offer many additional services such as the charge card, insurance, service stations and travel agencies.

• CARREFOUR EXPRESS SUPERMARKETS – A winning combination of low and stable prices, every day, and an assortment of 7,500 food and non-food products, 25% of which are Carrefour brand products. Services such as charge cards and home delivery are also available. The sales areas of these store ranges from 1,200 to nearly 2,500 sq. m.

• CARREFOUR CITY STORES - These stores were designed with the aim of putting Carrefour "in the heart of the neighbourhood." This new form of convenience store, currently being tested in Madrid, offers optimum value for money in its range of 3,800 food products (80% of the assortment). Carrefour's brands are actively promoted since they represent a third of the assortment. These stores have an area of around 350 sq. m.

• DIA HARD DISCOUNT STORES - With 2,912 stores, Spain has become both the Carrefour Group's hard discount territory and its testing ground.   It is here that Carrefour tests its new Maxi-Dia and DiaMarket models, new services like mobile phones and Dia own-brand products before they are introduced in other countries.  In 2007, the acquisition of Plus Supermercados from  German retailer Tengelmann added 250 stores to the Dia network, widening its lead as the country's top chain of discount stores. The sales areas of these store ranges from 400 to 1,200 sq. m.

Commercial services

Carrefour's various forms of commerce are complemented by a series of commercial services designed to bring more convenience to customers on a day-to-day basis. The services, which are available at discount prices helping to ensure accessibility to customers, include financial services associated with the Pass Visa card, which has two million members, and a variety of other products and services (loans, insurance, international money transfers etc.); service stations, which are being heavily promoted with discounts of up to 10% on fuel; travel agencies; Carrefour Online, offering Internet purchases of 12,000 food and technology products; and Carrefour Telecom, the Group's telephone services operator for the past two years, offering ADSL, fixed-line and mobile services at discount prices. 

Club Carrefour

Created in 2006, Club Carrefour is now the largest customer loyalty programme in the sector. It has 7.5 million members and accounts for nearly 70% of identified sales. It rewards customer loyalty with large direct discounts that can be accumulated and used toward future purchases. It also offers other exclusive benefits at the Group's banners. It allows for recognition and technical identification of customers and helps generate personalized commercial offers. It uses the largest segmented database in Spain and has a high level of management and security technology.

Assortment and own brands

The attractiveness of the Carrefour Group's banners lies in the freedom they offer in terms of product selection, brands and prices. The selection of over 100,000 food and non-food products at our hypermarkets constitutes the largest multi-specialist offering on the market.  Our own-brand range is also one of the most extensive in the country. The range now includes 9,000 staple good items in the main product families following significant development efforts in 2007. Some 1,600 new items were launched and the image and packaging were redesigned. Among the new product lines are prepared meals, products for specific nutritional needs, organic products and products for children. The other strong points of the assortment include the presence of major brands, a special focus on regional food brands, and the development of ethnic and imported assortments to match the lifestyles and realities of the Spanish population of today. 

Team

At 31 December 2007, the Carrefour group employed 72,282 people in Spain. The average annual job creation over the last four years was 1,500 persons. This growth and the consolidation of the teams called for an intensive training programme. In 2007, 116,000 training sessions were held, representing 730,000 hours of instruction. Management by objective and modern internal communications systems motivate the teams to strive for excellence in service on a day-to-day basis. 

A responsible company

Sustainable development is a key part of the company's strategy. Its large size and strong economic and corporate integration make it a key player in Spanish society.

Economic impetus

The CC Carrefour Group's contribution to Spain's GDP in 2007 came to €1,518 million, with an annual growth rate of 6.7%. During the year eight new hypermarkets were opened, creating 1,133 new jobs and making Carrefour one of the biggest employers in Spain. The economic scope of the Group's operations is also significant. It means bringing value to regional companies – manufacturers and service providers. In 2007, there were 12,666 such companies, most of them SMEs. They provide 93% of all the products purchased annually.
For over 12 years, a specific programme for promoting regional products has been in place. It includes promotions in other countries in the network. In 2007, 20 promotions were carried out with the participation of 1,896 SMEs and 13 million visitors. Similarly, Carrefour España, as supplier of the Group's produce, is the leading produce distributor in the country, handling over 500,000 tonnes in 2007, 174,000 of them exported.

Socially responsible buyer

Carrefour is particularly involved in social action geared toward assistance for children and disadvantaged sectors via the Solidaridad Carrefour Foundation. Its participation consists of the involvement of its teams as well as its financial support. In 2007, 583 disabled persons worked for the company. Agreements related to hiring people at risk of social exclusion were also maintained. With the Red Cross, the company maintains an emergency system for disaster situations in partnership with the company's logistics network. In 2007, Carrefour provided food on a structured basis to welfare assistance organizations and launched donation solicitation campaigns aimed at customers on behalf of 117 local NGOs. Additionally, 17,261 employees voted on the corporate assistance to be granted to six national-level projects. Carrefour participates actively in responsible trade and corporate volunteering projects. It contributes its knowledge and maintains a high level of sponsorship for sports and healthcare.

Modern commerce with a focus on quality and the environment

The goals in this area are demanding: guarantee  defined levels of quality in processes and products, keep the environmental effects of operations in the value chain to a minimum and recycle and manage waste. In 2007, over 28,000 analyses of various types were performed on commercial products. As for suppliers, 251 audits were carried out and 8,000 inspections were performed throughout Carrefour's logistics network. The "Zero Waste" objective was also set up. This involves a methodological restructuring of the management of these materials. 2,100 tonnes of discarded electrical appliances were collected. In 2007, with a view to using more renewable energy, we equipped the roofs of our hypermarkets with photovoltaic generation systems able to produce 50,000 kWh. Carrefour is an important partner in environmental management and works with entrepreneurial and State institutions in this area. In 2007 it awarded the fifth Carrefour Environmental Prize.