Carrefour China Case study Solution

Carrefour China, …building a greener store

Sonia GroverPGDM1

Synopsis• New concept of “green” store was introduced• Carrefour first green store opening in Beijing, in 1995• Company operated 73 hypermarkets in 29 Chinese cities• Supermarkets in and around luxury hotels for rapid

growth• Carrefour’s Aim: mix western store with local preference

for freshness• Its turnover in china was US$2 billion, in 2005,making it

5th largest market

“Green Store”• Store built and operated with the most advanced

environmental technology• Use of non-renewable resources was prohibited• For getting potential benefits of energy conservation• Maintaining sustainability, causing decrease in cost and

increase in 35% sales

• High Electricity consumption• Operational cost, AC & Refrigerator is 15-20% of total

budget(later, 30% of total energy consumption)• Lack of strategy for green project• Managing equipment suppliers escalates cost working with local suppliersImporting complex equipment

Problem definition

• Climate problem• Frequent Short supply of electricity• Genetically engineered rice not approved for human

consumption, in central China• Lack of knowledge of local supply and material availability• Risk of the level in LEED certification, which could affect

positive public relations

…Continued

Situational Analysis• Aim was to mix western store with local preference for freshness• 45000 visitors each day of larger stores• Sales of 20k-25k transactions• Operational, maintenance problem came into the frame• Reducing maintenance and operating costs by 12%• Standardized the equipment, and make importing process not-

acceptable if it gets delayed or not standardized

• Greenpeace demanded to stop the sale at a Carrefour hypermarket in central china

• “Green” saved its 30% of energy consumption• Climate problem

Recommendations• Applying “Green” concept in practices, rather than making all the

processes “green”• Following all the Legitimate aspects• Getting certified by LEED, so as to build trust among consumers• Contact with Electronic savings companies to avoid electricity issue,

like GE• Use of 3Rs• Making all the stores “green”, then focusing on New stores• Strategizing all the processes, to avoid further complications

Thank you