Carrefour S.A. Annual Report 2018

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FY2018 Annual Report · Carrefour S.A.

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The food
transition
for all

A year
of action

2018 Activity report

Contents

A N O B S E R V A T I O N

A N A M B I T I O N

A M O D E L

I N T E R V I E W W I T H

A L E X A N D R E B O M P A R D

A Y E A R O F A C T I O N

W I T H Y O U

A Y E A R O F A C T I O N

F O R Y O U

with
you

for
you

Eating better
to live better

Shopping the way
you want

Feeling confident
about what’s on your plate

Receiving a warm welcome
and good advice

Doing more for the planet

A business model …

… that supports our strategy

Everyone working
to promote better eating

Striving every day
to achieve food solidarity

A strategy driven
by active governance

Key financial
and CSR figures in 2018

Offering access for all to healthy,
tasty, quality food is the mission
that has mobilized our teams
for the past year. It is incorporated
in the specific actions that Carrefour
is undertaking to help more people
eat better and to radically transform
the Group’s practices, in line with
consumer expectations.
As part of this pioneering food
transition, Carrefour is pushing its
agricultural partners and all
food-chain stakeholders to achieve
higher standards in terms of quality,
traceability and environmental
protection. The Group is thus
increasing its involvement in the local
community and in promoting
regional economic development.

An observation

Better eating is a societal challenge. For pleasure, for health
and also for developing a sustainable production model that
protects the environment and biodiversity, limits global warming
and contributes to local economies. Driven by these three
imperatives – health, environmental and social – Carrefour
is reinventing its model to promote a shared ambition: become
the world leader in the food transition for all.

9.8 billion

humans to feed in 2050,
vs 7.5 billion today.

38.9%

of the world’s adult population is
overweight or obese. That’s the highest
level ever recorded.

Source: UN, June 2017.

Source: Global Nutrition Report, November 2018.

11%

O F T H E G L O B A L P O P U L A T I O N , O R 8 1 5 M I L L I O N P E O P L E ,

D O N O T H A V E E N O U G H T O E A T.

+60%

89%

In France, there has been a 60% increase in
organic farmland in five years. Organic farmland
accounted for 6.5% of usable farmland in 2017.

Source: L’Agence Bio, 2018.

24%

Source: FAO, October 2016.

GREENHOUSE

GAS EMISSIONS

ASSOCIATED

WITH AGRICULTURE

HAVE DOUBLED

IN FIFT Y YEARS,

AND NOW ACCOUNT

F O R 2 4 % O F T O TA L

GLOBAL EMISSIONS.

Global sales of organic
food products
tripled in ten years,
reaching €80 billion
in 2015.

of consumers worldwide believe that
food is as effective as medicine for
maintaining their health.(1)

47%

of French people say that
they have bought more environmentally-
friendly products over the past
two years; 44% have bought more
products that provide fair compensation
for producers; and 44% have bought
more products that guarantee animal
welfare.(2)

29%

of consumers worldwide make an
average of more than one online
purchase per week (31% in France,
41% in Germany, 52% in China).(3)

+30%

The global e-commerce market
for FMCG and SSFP grew 30%
in 2017 to reach 4.6% of the global
total (5.6% in France).(4)

(1) Source: Eater’s Digest 2017, Prosumer Report.
(2) Source: Ipsos survey, November 2016.
(3) Source: PwC, Global Consumer Insights, 2018.
(4) Source: Kantar Worldpanel, 2018.

Source: UN, 2017.

Source: L’Agence Bio, 2017.

THE FOOD TRANSITION FOR ALLCARREFOUR 2018An ambition

Creator of the hypermarket, pioneer of mass
consumption, leading general retailer of organic products
in France… Carrefour remains true to its history
and is reinventing itself to offer high-quality food that
is affordable for all, every day, across all of its distribution
channels. Food that is healthy, varied and authentic,
that protects the environment and is socially responsible.

Food
transition

To become the world leader in the food transition
for all, Carrefour intends to generate €5 billion
in global sales of organic products by 2022
and to significantly expand its offering of fresh
and own-brand products with high taste, quality
and environmental standards.

Affordable
prices

True to its commitment on purchasing
power, Carrefour is taking action
on the prices of its products to ensure
that the food transition is accessible
to all and offers fair compensation
for producers.

An omni-channel
strategy

€ 5 B I L L I O N I N S A L E S B Y 2 0 2 2

New technologies have revolutionised the ways
we consume, so Carrefour is investing €2.8 billion
in digital technology over five years to build
an omni-channel universe of reference and become
the world leader in food e-commerce by 2022.

Fully aware of the urgency and scale of the challenges to be addressed, in September 2018 Carrefour
launched Act for Food, a global programme of concrete initiatives for “better eating”. The corresponding
commitments are adapted to meet the specific needs of each of the Group’s host countries. In France,
for example, Act for Food is based on 13 key actions.

Ensure
that fresh produce
under the Carrefour Bio brand
is 100% French organic

Ban
100 controversial
substances from all
Carrefour food products

Reduce or
completely end
the use of chemical pesticides
in plant product lines

End
the use of antibiotics in Carrefour Quality Lines livestock farming

End
the use of GMOs in Carrefour
products and in feeds used
for livestock

Guarantee
a selection of fish sourced
using responsible fishing
methods and aquaculture

Sell
fruit and vegetables grown
from farmers’ seeds to promote
biodiversity

Double
the number of products
in the vegetarian
range in 2019

Deploy
blockchain technology
for traceability across all
Carrefour Quality Lines

Help 500 farmers switch to organic methods

Combat
food waste

Reduce
packaging

End
the sale of organic fruit
and vegetables that are
not in season

THE FOOD TRANSITION FOR ALLCARREFOUR 2018An open,
integrated model

Since 2018, Carrefour has undertaken a radical transformation
of its business model to address emerging consumer issues
and societal expectations. It is an open, integrated model which connects
an extensive ecosystem of producers, customers and partners
to create value for each stakeholder.

Convenience

F O R C U S T O M E R S :

1 store less than 8 minutes
from home on average in France

L O C A L P R O D U C T I O N :

Nearly 28,000 Carrefour Quality Lines
partner producers worldwide

Openness

In September 2018, Carrefour set up a Food
Advisory Committee made up of recognised
experts in eating well, health and sustainable
agriculture:
Lucie Basch, founder of Too Good To Go
Myriam Bouré, co-founder of Open Food France
Emmanuel Faber, CEO of Danone
Jean Imbert, environmentally-responsible chef
François Mandin, Vendée-based farmer
committed to methods that preserve soil
Caroline Robert, head of dermatology
at the Gustave Roussy Cancer Centre
Maxime de Rostolan, founder of Fermes d’Avenir
and Blue Bees

€2.8 billion

invested in the Group’s digital and omni-channel
transformation between 2018 and 2022.

Public authorities

Employees

P R O D U C E R S

S U P P L I E R S

Technology
and strategy
partners

Ecosystem

NGOs
and charities

S T O R E S

C O N S U M E R S

Shareholders

Communities

Creating shared value

90%

of employees
are on permanent contracts

€6.2

billion in payroll
and social security
contributions

€523

million in dividends
paid out in cash
or stock
to shareholders

THE FOOD TRANSITION FOR ALLCARREFOUR 2018exchange rates to €85 billion. Our recurring
operating income increased by 4.6% to
€1.9 billion and our free cash flow was up 15%.
Carrefour took some decisive steps in its
initiatives in favour of the food transition
for all and omni-channel retailing. The reason
we are transforming our model in depth and
reinventing the way we do business is to meet
the deep-seated aspirations of today’s
consumers, who are looking not just for healthy,
balanced, authentic food at an affordable price,
but also food which protects the environment
and biodiversity, contributes to the local economy
and allows farmers to make a decent living.

THIS IS WHAT YOU CALL “THE FOOD
TRANSITION FOR ALL”. WHAT DOES
THIS MEAN, IN CONCRETE TERMS?

A. B.: First of all, we are the only retail banner
to have incorporated this goal as a core
element of our model. The food transition
for all has allowed us to restore a great sense
of ambition to Carrefour, and it is an ambition
that is very much consistent with our history.
After all, Carrefour has been at the forefront
of these issues since the early 1990s with
the introduction of Carrefour Quality Lines,

“Our 508 Quality Lines
now encompass nearly
28,000 farmers all over
the world. Bringing together
such a large agricultural
community is an
extraordinary lever for
ensuring that healthy,
local, affordable food
is available everywhere.”

the development of unbranded and private-label
products, and the sale of organic bread in all of
our hypermarkets. As part of the Carrefour 2022
plan and with the launch of the Act for Food
global campaign, we wanted to go further. We
have redesigned our stores, our commercial
offerings and our organisations, and our entire
business is focused on this objective.
Upstream, our 508 Quality Lines now

encompass nearly 28,000 farmers all over
the world through multi-year partnerships
that incorporate rigorous criteria for quality,
freshness, and environmental and social
responsibility, based on contracts which also
guarantee a sustainable income to farmers.
Bringing together such a large agricultural
community is an extraordinary lever for
ensuring that healthy, local, affordable food
is available everywhere. And we are pushing
for even higher quality. We are developing
agro-ecology within our supply lines, using
blockchain technology to provide transparency
on traceability, and introducing standards
more widely. We have often been pioneers in
adopting such standards: on zero deforestation,
for example, or animals raised without the use
of antibiotics and fed on GMO-free feed,
free-range eggs, fish from sustainable fishing,
the reduction or elimination of pesticides,
animal welfare, and so on. We are now
helping farmers producing products for
our lines to switch to organic methods.
This is essential if we want to be able to offer
local and national organic food and as many
seasonal products as possible in each country.
In France, we have undertaken 210 conversions
in one year, nearly half of our goal of
500 conversions by 2022.

HAVE CUSTOMERS NOTICED
THIS CHANGE?

A. B.: In addition to some extremely positive
feedback in stores, we have a significant
leading indicator: growth in our sales of organic
products. Sales rose substantially in 2018
to reach €1.8 billion, in line with our target
of achieving €5 billion in sales by 2022.
Similarly, sales of Carrefour Quality Lines
products increased by 10%, exceeding
€900 million. At the other end of the chain,
in all of our stores and in e-commerce, we are
expanding and enhancing our selection
of organic, non-packaged, fresh and locally
sourced products. One example of this is Bio
Experience, a true shop-in-shop dedicated
entirely to organic products, which has been
hugely successful and will be launched in most
of our hypermarkets. But going beyond these
figures, I sense that customers support
the direction we have chosen to take.
Moreover, in this area and more broadly,
customer satisfaction is now our core objective.
It is measured on a daily basis, leading to
corrective actions being taken in real time.

“BECAUSE
OUR AMBITION
HELPS ALL OF US,
IT MOBILISES
ALL OF US.”

Alexandre Bompard,

Chairman and Chief Executive Officer,
Carrefour group

WHAT HAVE BEEN THE RESULTS OF THIS
FIRST YEAR OF TRANSFORMATION, OF
REINVENTING THE CARREFOUR MODEL?

A. B.: 2018 was a very busy year during
which we achieved or exceeded our objectives.
This first year was key in terms of implementing
our plan. We needed to streamline our business
model and create an organisation which is simpler,
more flexible, responsive and open to partnerships.
Much remains to be done, but there is no question
that we have regained momentum based on
a widely shared goal: the food transition for all.
It’s a challenge that adds a great deal of meaning
and enthusiasm to everything we do. So a huge
“well done” to all of the Carrefour teams who
have, in the space of one year, completed some
remarkable groundwork.

HOW WOULD YOU ASSESS THE RESULTS
ACHIEVED IN 2018?

A. B.: We saw strong and encouraging results.
Our gross sales grew by 1.4% at constant

THE FOOD TRANSITION FOR ALLCARREFOUR 2018WHAT IS THE AIM OF THE GLOBAL
ACT FOR FOOD CAMPAIGN LAUNCHED
IN SEPTEMBER 2018?

A. B.: In each of our host countries, Act for
Food makes us accountable to the public
regarding our specific actions to help people
eat better and, beyond that, to reduce plastic
packaging and pollution, minimise food waste,
protect biodiversity and so on. Carrefour
champions a global farm-to-table, production-
to-waste-recovery policy. This is not just “one
more” campaign, we are talking about specific
commitments that we are making and
publicising. It is a tool which has been readily
adopted in all countries to mobilise teams
to tackle local issues. There are significant
variations here, between more and less
developed countries, with regard to a healthy,
responsible diet.

YOU HOPE TO MAKE THIS LEVEL
OF FOOD QUALITY ACCESSIBLE
EVERYWHERE, ALL THE TIME, AS PART
OF AN OMNI-CHANNEL RETAIL
UNIVERSE. THIS IS THE SECOND PILLAR
OF YOUR STRATEGY. WHAT HAVE
THE INITIAL RESULTS BEEN?

A. B.: They have been very encouraging.
Our e-commerce food sales increased by 30%
in 2018 to €1.2 billion, which is in line with
our target of €5 billion by 2022. Between 2018
and 2022, we will be investing €2.8 billion in
digital technology, six times more than
previously. What is the strategy? Quite simply,
it stems from what consumers want. Today,
they want everything: to be able to place
orders via their mobile phone and have them
delivered in an hour for their evening meal,
as well as to be able to do all their shopping
at low prices in store, or pick up their purchases
using the Drive drive-through service.
This is why Carrefour is building the most
complete ecosystem on the market, drawing
on the considerable asset represented by
its 12,000 stores across all formats. In 2018,
we pursued a number of major projects.
We rolled out a single e-commerce website
per country based on the Carrefour.fr model
and created nearly 200 Drive pick-up points,
including 50 pedestrian locations which
bring all the benefits of a hypermarket to
the city centre. We have significantly expanded
the convenience services that are an integral
part of e-commerce: click & collect,

Drive, home delivery – including one-hour
delivery. In support of these services,
we are building a state-of-the-art logistics
infrastructure to guarantee our customers
maximum choice, responsiveness and
efficiency. As a sign of our renewed
attractiveness, in 2018 Carrefour concluded
strategic partnerships with digital giants
including Tencent and Google. They are helping
us to design the digital services of the future,
which will simplify, enhance and personalise
the customer experience, both in stores and
via e-commerce. Finally, we are rethinking all
of our branded stores as part of an omni-
channel approach. By 2022, we will be opening
3,000 convenience stores throughout
the world, up from the 2,000 initially planned.
And we are radically transforming
our hypermarkets to more closely match
the aspirations expressed by our customers.

WHAT IS BEHIND
THIS TRANSFORMATION?

A. B.: Carrefour invented the hypermarket,
the concept of “everything under one roof”.
I have no doubt that that concept is still
relevant. It’s just no longer the same roof,
nor the same everything. And we must
radically change our stores. Globally, we
expect to reduce sales areas by 400,000 m2
by 2022, compared with an original goal of a
100,000 m2 reduction in France, and to cut our
product assortment by 15% by 2020, primarily
in non-food categories. When it comes down
to it, our customers want to do their shopping
more quickly and they would like to be able
to choose how they shop, with services that
connect stores to the online offering: Drive,
delivery, click & collect. They also expect an
offering which is easier to understand and
more “efficient”. This is why, on the non-food
side, we are streamlining our ranges,
discontinuing some categories of products
where we are no longer as relevant as we once
were. In other categories, we are establishing
partnerships with specialist players, such
as Fnac-Darty, with whom we are trialling
household appliance and multimedia shop-in-
shops in our hypermarkets. We are allocating
some of the freed-up space in our stores to
expanding organic, fresh, non-packaged and
local product ranges, as well as to dark stores,
which are dedicated to servicing online orders,
and to outlets (spaces for inventory clearance
and bargains). Finally, stores must once again

become an attractive, pleasant and practical
destination for our customers, offering
food-service areas and numerous services.

WHAT ARE THE OTHER COMPONENTS
OF YOUR TRANSFORMATION STRATEGY?

A. B.: To achieve our ambitions, we must be
able to rely on a simpler, agile organisation
which has removed internal boundaries,
maintains strict financial discipline and
embraces a culture of operational efficiency.
In 2018, we had to take some decisions which
were difficult but essential for the Group’s
future: 273 former Dia stores are no longer part
of the Group, voluntary departure plans were
implemented at head offices, we streamlined
our property holdings, we overhauled the way
we manage purchasing, inventory and logistics.

“Carrefour has concluded
strategic partnerships with
the digital giants. They are
helping us to design the
services of the future,
which will simplify,
enhance and personalise
the customer experience.”

We implemented these measures as part
of a sustained dialogue with employees,
which was based on a shared and responsible
assessment of the Group’s situation and all
of the challenges to be addressed. And we
have committed to systematically seeking
negotiated agreements with unions on all
plans that have an impact on jobs. We also
implemented a cost-reduction plan and a plan
for pooling purchases of goods not for resale,
allowing us to make greater savings on
management costs than expected.
Consequently, we have revised our savings
target from €2 billion to €2.8 billion on an
annual basis by 2020. These savings mean
that we have been able to identify new
opportunities to invest in our future. We are
continuing our efforts to build a sustainable
growth model and we are making strong
choices which benefit the consumer and help
us to become more competitive.

AS A MAJOR PLAYER IN LOCAL
ECONOMIES, WHAT FORM
DOES CARREFOUR’S ECONOMIC
CONTRIBUTION TO THE REGIONS TAKE?

A. B.: First, direct jobs, which cannot be moved
to another location. Carrefour is France’s biggest
private employer, with 110,000 employees,
90% of whom are on permanent contracts.
In 2018, we hired 11,000 people on permanent
contracts in France. We also take on seasonal
workers in our warehouses and stores: this
amounted to 37,000 people in 2018. In addition,
each store procures supplies from a growing
number of regional suppliers and producers,
as we develop short supply chains. In 2019,
for example, we will increase the proportion
of French fruit and vegetables in our product
offering in France from 85% to 95%. That represents
an additional investment of €50 million in
regional agriculture. Every year, we spend a total
of €1 billion on French agricultural products.
Finally, at the local level, our stores are involved
in sustained efforts on food aid and vocational
integration, in partnership with the Carrefour
Foundation and the Carrefour Solidarity
programme. Among other initiatives, in 2018
French hypermarkets and supermarkets donated
the equivalent of 93 million meals to more than
800 local food charities.

WHAT IS THE ROADMAP
FOR 2019?

A. B.: We will be building on the momentum
created in 2018, taking our actions further
and accelerating our transformation. So we will
be continuing to expand our offering of
organic, fresh and local products. To give one
example: from 2019, all of our Carrefour Baby
range will switch to organic. Moreover, we’ll be
making wider use of blockchain traceability,
stepping up our support for farmers, and rolling
out an omni-channel platform which is
increasingly simple, intuitive and personalised.
And we will be offering affordable prices
through our 10,000 own-brand products
and an attractive loyalty programme integrated
with our mobile payment solution. Eating better
food – healthy, fresh, local food with more
flavour and less CO2 and packaging, and no
pesticides or additives – is a concern and desire
that we all share as consumers and citizens.
It is what drives Carrefour’s teams on a daily
basis. Because our ambition helps all of us,
it mobilises all of us.

THE FOOD TRANSITION FOR ALLCARREFOUR 2018A year
of action

with
you

THE FOOD TRANSITION FOR ALLCARREFOUR 2018Eating better
to live better

T H E P R O D U C E R

Today’s consumers expect to eat a healthier diet,
with more fresh, local and responsibly-produced foods.
They want tastier foods that are better for their health,
safeguard the environment and ensure fair compensation
for producers. With more than 12,000 stores
in 30 countries and more than 360,000 employees,
Carrefour has a key role to play in the success of this
large-scale food transition. A trailblazer in bringing
organic foods to retail stores, the Group has created
508 Carrefour Quality Lines since 1992, bringing
together nearly 28,000 farmers in long-term
partnerships based on criteria for local sourcing,
sustainable farming and environmental conservation.
As part of its transformation plan, Carrefour has raised
its standards still further, pledging that its Quality
Lines will pursue an agroecological strategy with
total traceability via blockchain, while supporting
several hundred farmers to switch to organic
methods. The Group is also reinventing its food
offering to provide the widest variety of organic
products, fresh food, locally produced foods and
labelled products, through an omni-channel platform
which simplifies everyday shopping. From the farm
to the table, in stores and online, our teams strive
to ensure that good food is available everywhere,
for every budget.

Our action plan

Enhance our range
of fresh foods

Expand our selection
of organic products

Increase our range of local
and regional products

Develop our vegetarian
product selection

Help farmers to switch over
to organic methods

Roll out the use
of agroecological practices
to our Quality Lines

Promote farmers’ seed systems

Ensure animal welfare

Introduce full traceability
for own-brand products

Our objective
€5 billion

in organic food sales
by 2022

A N O V E R V I E W O F O R G A N I C S ,
F R O M F A R M T O T A B L E

(1) Organic Agriculture and Protected Geographical Indication.

“Carrefour is providing
valuable support as
we switch 42 hectares
of orchards to organic
agriculture, to produce
Corsican clementines
and pomelos with
dual OA and PGI(1)
certification.
Supplementing the 30 hectares we previously
converted, these new plots require
substantial investment. We are exceeding
the requirements for organic certification
by introducing agroecological practices,
such as protecting plants and animals
within the orchards and installing smart
sensors to improve water management.
By pledging to purchase specific volumes
of our citrus fruits at a fixed price for
three years, as of year two, Carrefour is
giving us the visibility we need to pursue
this investment and conversion with
confidence. Yet the company didn’t
demand that we supply them exclusively;
they left us free to pursue other markets.
It’s a balanced, respectful partnership.”

Mathieu
Donati
Director
of Agrucorse,
a producers’
organisation
made up
of 37 Corsican
citrus fruit
producers
(clementines,
pomelos, kiwis)

THE FOOD TRANSITION FOR ALLCARREFOUR 2018“Aware of
the environmental
and public health risks
posed by industrial agriculture, people
today are ready for a true agricultural
and food transition. To protect the
environment and maintain biodiversity,
production methods must change if we
want the French agricultural industry
to produce food in a way that is healthy
for our ecosystem and for consumers.
That’s the basis for the partnership
between WWF France, LSDH, APLBC Bio,
Carrefour and its Foundation. It represents
the first time that a partnership of this
magnitude – bringing together an NGO,
a producer organisation, an SME and
a retailer – has been established in
France to support farmers who want
to switch to organic agriculture.”

T H E C U S T O M E R

T H E N G O

Lucie Smith
Corporate Engagement
Officer, WWF France

“I often buy fresh produce
and organic groceries at
the Carrefour hypermarket
in Assago, near Milan,
where I find the widest selection of products from
both local producers and major national brands.
I was initially attracted by the colours, the abundance
and the presentation in the stalls – I like to set aside
my grocery list and discover new products. I also like
the clear, accurate labelling and digital displays that
let me check the ingredients, origin, nutritional value
and environmental impact of the products. Because
I have children, I pay careful attention to what we eat.
I’m mindful of Carrefour’s efforts to maintain reasonable
prices on its organic brands, while explaining how
this price compensates the farmers. That’s what
I consider most important: selecting organic products
while making informed choices.”

Igor Ziccardi
Customer at the Carrefour
hypermarket in Assago, Italy

T H E M A N A G E R

“In France, organic
agricultural production
covers two thirds of the
nation’s consumption,
and many supply channels are finding
it difficult to meet demand. If we want
to achieve our target of €5 billion in
organic food sales by 2022, while giving
priority to local and domestic organic
products in each country, we need to
provide tremendous support upstream
to convert farmers to organic production.
That’s the goal of the plan we launched in
Belgium, France, Spain and Italy, and will
soon roll out in Brazil. In France, Carrefour
is committed to supporting the conversion
and organic certification of 500 farmers by
2022, guaranteeing them a specific sales
volume at a set price over several years.
We have already achieved nearly half of
our goal, by starting the conversion of
210 producers. Downstream, we have
significantly expanded our product offering.
In hypermarkets and Carrefour Markets,
we are introducing Bio Experience, a large
area devoted entirely to organic products.
We will also be opening several dozen
Carrefour Bio stores – with a completely
revamped concept – and accelerating our
growth in the specialised online retail
business through our Greenweez
subsidiary, the leading European company in
the market.”

Benoît Soury
Organic Market Manager,
Carrefour group

THE FOOD TRANSITION FOR ALLCARREFOUR 2018
T H E S T O R E
M A N A G E R

Frédéric Petot
Director of the Carrefour
hypermarket in Mérignac,
France

“In November 2018, we opened
a Bio Experience area at
our hypermarket in Mérignac.
It’s a true store within a store, offering a wonderful array
of organic products in a 500 m2 space, with three times
more non-packaged grocery products, far more
seasonal fruits and vegetables, locally-produced
products, an expansive fresh foods department with a
wide selection and a space for special events. I recruited
a dietician/nutritionist who is available to advise
customers during peak business hours. In three months,
our sales of organic products rose 35%, and our
non-packaged organic sales grew nine-fold. In addition
to our usual customers buying more organic foods,
we’re attracting new consumers, who are very well
informed in this area. The Bio Experience area also brings
a lot of life to the store. We offer tastings, presentations
by local producers, tours and school workshops,
plus organic cooking classes presented by Urban Chef,
which are always full. It’s truly gratifying for the store’s
team, both as employees and as community members
and consumers. It’s also a very tangible expression
of our transformation plan. With Bio Experience, we are
fully engaged in the food transition for all.”

Jorge Turiel Martínez
Customer at Carrefour Bio
Calle Velarde, Madrid,
Spain

T H E C U S T O M E R

“This is the best store I know
in Madrid, in terms of variety, price
and product presentation. It’s easy to find what
I need, without having to wander the aisles,
searching through the departments: everything
is organic and within reach. Prices are fairly
reasonable and the quality is excellent, compared
to other organic food stores that I’ve tried. That’s
especially true for eggs, meat, fruit… There are also
organic personal care and household cleaning
products, but I’m not as familiar with them. That will
be my next goal as a consumer.”

A commitment to eating better
also means:

ROMANIA

SPAIN

FRANCE

Setting up high-quality
supply channels
Carrefour founded
the Vărăşti farming
cooperative, which is made
up of 100 local farming
families and delivers more
than 5,000 tonnes
of vegetables each year
to Carrefour’s hypermarkets
in the country.

Expanding
agroecology
Carrefour Spain created
a Quality Line for
agroecological oranges
that are grown without
synthetic pesticides
and preserve biodiversity.
In total, Carrefour
has launched nine
agroecological Quality
Lines and is working
to expand the policy
still further.

Banning the use of all
controversial substances
in our products
In 2018, Carrefour
eliminated 100 food
additives from its
own-brand products.
The Group has
implemented the same
policy in Belgium,
Spain and Italy.

TAIWAN

Supporting
producers
Carrefour Taiwan
is supporting more than
50 producers to switch
to organic methods
and has committed
to providing the same
support to 100 producers
between now and 2022.

BRAZIL

Making dietary products
and health food
more widely available
Carrefour is the first
retailer in Brazil to offer
gluten-free, sugar-free
and lactose-free
own-brand product
ranges, at prices
that are affordable.

ITALY

Making organic foods
accessible to all
In Italy, Carrefour
guarantees that the price
difference between
organic food products
and conventional
products will not
exceed 20%.

€1.8 billion
Carrefour’s organic food
sales in 2018.

+10.1%
increase in worldwide
sales of 508 Carrefour
Quality Lines in 2018.

+30
Bio Experience
concepts will be rolled
out to hypermarkets
in 2019.

95%
of fruits and
vegetables sold in
French stores will be
produced in France.
That’s the target from
2019 onwards.

x 2
The first French
retailer to launch an
own-brand vegetarian
product range,
Carrefour will double
its selection of vegan
products in 2019.

THE FOOD TRANSITION FOR ALLCARREFOUR 2018
Shopping
the way
you want

By combining its network of more than 12,000 stores
with an attractive and intuitive online shopping
experience, Carrefour gives each customer the ability
to shop when they want, where they want, and how
they want. In the Carrefour universe, customers can
place their orders via computer or smartphone, pick up
their shopping from a Drive pick-up point or at a nearby
store, or have them delivered to their home in one hour
with the express delivery service. Of course, customers
can choose to shop at the store that best meets their
current needs, downstairs from their flat or at the nearest
hypermarket. With the new online services available
in stores, customers can compare prices and quality,
reduce the time they spend waiting at checkout and
try out the new mobile payment solution, Carrefour Pay,
along with the Group’s loyalty programme and coupon
initiatives. It all adds up to a revamped shopping experience
that is always tailored to the needs of the individual.

A N O V E R V I E W
O F O M N I - C H A N N E L
R E T A I L I N G : F R O M
T H E S M A R T P H O N E
T O T H E F R I D G E

Our action plan
Enhance and streamline
our online product offering
on a single e-commerce
website

Expand our convenience
store formats and integrate
our hypermarkets into
an omni-channel platform

Broaden access to Drive,
click & collect and home
delivery services

Deploy a cutting-edge
logistics infrastructure

Work with our technology
partners to build the store
and e-commerce of the future

Our objective
€5 billion

in food e-commerce
sales by 2022

T H E C U S T O M E R

“The order
preparation
platform (OPP)
in Aulnay-sous-Bois
currently handles
more than 3,000 orders
each day,
all placed online by our customers.
We serve 40 Drive and hypermarket
and supermarket pick-up points. Each day
we strive to meet very short delivery lead
times for an extensive range of 14,000 products.
We work closely with the Group’s
e-commerce teams to anticipate demand,
adjust product assortments, optimise flows
and measure customer satisfaction.
During 2019 we’ll be automating the Aulnay
OPP using ‘goods to man’ technology
that automatically sends the products
to the order picker, allowing us to double
productivity and handle 7,000 orders a day.”

“I frequently go to Le Marché
for its wide selection of fresh
produce and to enjoy a drink
and dine at the store, where they grill the fish or meat
that I’ve just bought. I’m also a fan of the technology
that’s been installed in this store. I can scan my items
myself using my WeChat app – very popular in China –
then pay using facial recognition through the same app.
It’s as easy as taking a selfie. I can leave without waiting
at the checkout, which saves lots of time and energy.”

Zhentong Lin
Customer at Carrefour
Le Marché, Changning District,
Shanghai, China

T H E L O G I S T I C S
S P E C I A L I S T

Guillaume Leroy
E-commerce platform manager,
Carrefour France

CARREFOUR 2018THE FOOD TRANSITION FOR ALL
“As part of a strategic partnership
signed in June 2018, Google and
Carrefour opened a Lab, a space
dedicated to the development of
new digital services using artificial
intelligence.
Recently established within the 2,500 m2 Hub located
near Station F(1), we start from concrete examples
to devise solutions that enrich and personalise the
omni-channel customer experience, in store or online.
Our teams complement each other very well. Google
provides expertise in cloud technology, artificial
intelligence and voice assistance, while Carrefour brings
experience in retail, logistics and an understanding
of its customers. Together, we are creating services
that can make a real difference to consumers.”

(1) Station F, in Paris, is the world’s biggest start-up campus.

T H E P A R T N E R

Candice Malini
Industry Manager Retail,
Google France

T H E F A C I L I T A T O R

“One Carrefour, our
e-commerce website,
gives customers access
to the entire Carrefour
product offering
– grocery, non-grocery, clothing,
marketplace – through a single platform.
It offers delivery and pick-up services,
along with a range of features available
through the customer’s online personal
space, including the loyalty programme,
shopping lists and customised benefits.
One Carrefour makes online shopping
even easier and faster for our customers,
giving them instant access to several million
products across every product category.”

Jesús de los Bueis
E-commerce technical
development manager,
Carrefour Spain

T H E O R D E R P I C K E R

“Each day I receive customer
orders on my computer
to prepare for drive-through
pick-up the next day.
I pick out the products at our hypermarket in Evere as
if I were a customer, except for the fact that from 6 to 9
in the morning I have the store to myself, and I can find
any products missing from the shelves in the backroom.
We serve a growing number of customers of all kinds,
who are attracted by the time savings and the convenience
of the drive-through. Many of them are regular customers.
Over time I learn what they want in terms of meat, cheese,
fruits and vegetables. If a product is out of stock, I call
them and suggest an alternative. The Drive pick-up
service may well operate online, but it’s something that
brings us closer to customers.”

Martine Jenard
Order picker, Carrefour Drive,
Evere, Belgium

THE FOOD TRANSITION FOR ALLCARREFOUR 2018
“My job is to organise
and mine the huge volume
of data (in-store sales, online
shopping, etc.) that Carrefour
collects each day.
First, we want to better understand the online
experience of each customer, in order to simplify
it to the greatest possible extent. For example, if a
customer frequently buys the same items on Carrefour.fr,
we will highlight them during the customer’s next visit,
or recommend that the customer create a shopping list.
If they order a lot of organic products, we can suggest
original recipes and personalised offers. That’s an
important way to build loyalty. The data scientist’s role
is to then find the optimal mix of assortments, products,
prices and promotions on a store-by-store basis. We
provide specialised internal teams with algorithms that use
sales history to refine that mix. In addition, big data is
also used in the supply chain to anticipate restocking
more effectively and optimise our inventories, purchasing
and transport. And in the future, it will detect product
shortages on store shelves in real time, using cameras
and connected objects. On a number of issues,
we work in partnership with data industry leaders
– Google, Sapient, Tencent – who increase our ability
to offer our customers customised digital services.”

T H E M A N A G E R

Catalin Samara
Operations Director, Carrefour Romania,
and Director of Bringo

T H E D A T A
S C I E N T I S T

Simplifying daily shopping
also means:

BRAZIL

CHINA

FRANCE

Sharing great recipes
On e-Mídia, the Brazilian
community portal
acquired in 2018
by Carrefour, people can
suggest and share recipes,
then order all
the necessary ingredients
online. The e-Mídia
website attracts
2.4 million unique visitors
each month.

Building the store
of the future
In Shanghai, Carrefour
and its Chinese partner
Tencent – which operates
the popular mobile app
WeChat – opened
“Le Marché”, an inviting
supermarket where
customers can do
everything with their
smartphone, such as scan
their products then pay
for them with WeChat
Pay, a payment solution
using facial recognition.

Making Carrefour’s
products even more
accessible
As part of its partnership
with Google, the non-food
offering is now available on
Google Shopping, and
Google Assistant allows
users to create a shopping
list in real time, or to add
the ingredients for a recipe.

BELGIUM

EUROPE

ITALY

Testing a 24/7 Drive
pick-up point
Carrefour has opened
its first fully automated
drive-through pick-up
point near Waterloo.
Customers can
place orders from
18,000 products listed
on a dedicated website,
then collect their items
the next day from a
secure locker. The service
is available 24 hours
a day. Carrefour will
expand the concept if
testing proves successful.

Offering ever more
organic products online
Greenweez, Europe’s
leading online distributor
of organic products,
is expanding and
diversifying its offering
with the acquisition
of Planeta Huerto,
the leading online retailer
of organic products
in Spain and Portugal,
with more than
35,000 product listings.

Providing new
in-store services
In Italy, Carrefour and
JoinTag, a geomarketing
specialist, joined forces
to provide hypermarket
and Carrefour Market
customers with a targeted
offer and promotions
service. Offers and
promotions appear
on their mobile phones
while they shop or when
they are in close
proximity to a store.

Sylvain Marsault
Director, Data Science
and Data Governance, Carrefour France

“In Romania, our Bringo
subsidiary has developed
a mobile solution
that brings the product offering of
an entire Carrefour hypermarket – more
than 50,000 products – to the consumer’s
smartphone, with home delivery in less
than 90 minutes. This is especially useful
for people who come home late from
work, and those who can’t easily leave
their homes. Over the course of one year,
we expanded the service’s geographic
coverage from 4 to 13 cities – 23 new cities
will be added in 2019 – and doubled
the number of orders. We made an interesting
finding: 48% of Bringo users have become
regular Carrefour customers. Online shopping
and brick-and-mortar stores enhance
one another as part of a platform that’s both
practical and beneficial to consumers.”

+30%
increase in global food
e-commerce sales
in 2018, or €1.2 billion.

190
Carrefour Drive pick-up
points opened in 2018,
including 164 in France.

470
Carrefour convenience
stores opened
worldwide in 2018.
Carrefour increased
its store opening
target from 2,000
to 3,000 by 2022.

28%
of our customers
in China use the
Scan & Go service:
they scan and pay
for their shopping
using their smartphone.
They no longer need
to wait at the checkout.

Atacadão cash & carry
stores opened in Brazil
in 2018. 20 openings are
planned in 2019.

THE FOOD TRANSITION FOR ALLCARREFOUR 2018T H E Q U A L I T Y
M A N A G E R

Barbara Kowalska
Quality and Sustainable Development
Director, Carrefour Poland

“In Poland, we have established
24 Carrefour Quality Lines
– with 7 more to be launched in 2019 – which supply
our stores with a wide range of fresh products: fruits
and vegetables, cheeses, meats and delicatessen
products. Each line brings Polish farmers and processors
who share the same high standards into long-term
partnerships, with very rigorous specifications at every
level, including on soil quality, sustainable production
methods, respect for the environment and biodiversity,
animal welfare and traceability. Carrefour provides
constant support and shares best practices from its
Quality Lines around the world. Each product is subject
to quality controls at every step of the way, from
the field to the store, and each supply line is regularly
audited by an independent laboratory. As a result,
we can guarantee that all our ‘Jakość z Natury Carrefour(1)’
products are of the highest quality.”

T H E F A R M E R

Feeling confident
about what’s
on your plate

Consumers want guarantees. Demand for quality
and transparency has grown as a result of various food
scandals in recent years. Carrefour has long been
attentive to these challenges, launching a comprehensive
quality and traceability process for its 10,000 own-brand
products. At Carrefour, all products are inspected
and tested at every stage of their life cycle, from
the fields and pastures to the store shelves. All suppliers
are regularly audited, certified according to the most
demanding standards on the market. Reflecting
these stringent requirements, labels clearly indicate
each product’s origin and composition, its energy
and nutritional values and its distinguishing benefits
(PDO, GMO-free, antibiotic-free). Carrefour goes
even further by applying total traceability, using blockchain
technology to its Quality Lines, which involve nearly
28,000 agricultural producers worldwide. A QR code
printed on the label allows customers to view the product’s
entire history on their smartphone, from production
to the store shelves. That includes the farmer’s name,
date and location of planting or breeding, agricultural
techniques used, processing method, etc. With blockchain
traceability, Carrefour is a step ahead in helping
consumers eat well.

Our action plan
Expand blockchain traceability
to all Carrefour Quality Lines

Improve animal welfare
throughout supply chains
by working with NGO partners
to support changes in practices

Encourage responsible
production and consumption
of seafood

Exclude GMOs and their
derivatives from own-brand
products and from the feed
of livestock used in Carrefour
Quality Lines

Our objective
100%

of Carrefour Quality Lines
traceable using blockchain
technology by 2022

A N O V E R V I E W O F T R A C E A B I L I T Y ,
F R O M T H E F A R M E R T O S T O R E
S H E L V E S

Olinto Rodrigues
de Arruda Junior
Itu, State of São Paulo, Brazil

(1) Name of the Carrefour Quality Lines in Poland.

“We’ve been supplying
pork to Carrefour Brazil
for thirteen years.
We were among the first producers to be
part of a Carrefour Quality Line, adhering
to livestock farming and processing
methods that meet the banner’s highly
demanding quality and environmental
protection specifications. When Carrefour
suggested that we set up a complete
blockchain traceability solution – the first
in Brazil – we saw an opportunity to
promote the actions we’ve taken in terms
of quality, ecology, animal welfare and
social responsibility. Each week, we enter
our livestock farming and production
data on the blockchain platform. End
customers can view that data on their
smartphone by scanning the product
label. Blockchain offers total transparency,
empowering the consumer and creating
a bond of trust along the entire food chain.
That’s especially important in the Brazilian
market, which has seen a number
of health scandals in recent years.”

CARREFOUR 2018THE FOOD TRANSITION FOR ALL“In October 2018, Carrefour
became the first European
retailer to join the IBM Food
Trust platform,
which unites manufacturers and international mass
market retailers, along with their ecosystems, around
the Hyperledger blockchain technology. By giving
everyone in the food chain access to the same
unalterable, tamper-proof information, it allows
for secure, instantaneous traceability. Initially designed
to facilitate withdrawals and recalls, Carrefour also
encouraged us to direct the solution towards the end
consumer. Using a QR code, their customers can access
the entire product history, production methods, production
dates and locations and processing. We have already
implemented total traceability for all Carrefour Quality
Line free-range chicken products in Spain. Our goal is to
adopt the solution on a broad scale, ensuring maximum
transparency, safety and food quality for consumers.”

T H E P A R T N E R

Sandra Calabre
Key Client Executive,
IBM France

Haiyi Zhang
Customer at Carrefour
Le Marché, Changning
District, Shanghai, China

T H E C U S T O M E R

“I always want to know
as much as possible
about what I eat.
That it’s good and healthy: that’s what
matters to me. I often buy Carrefour
Quality Line products such as Korla pears
and Panzhiuha mangoes. They offer
excellent quality at a reasonable price.
At the store, I recently noticed that
I could download the entire history
of a product to my smartphone by using
a QR code: I could see where and how
it was grown, when it was harvested
and transported… For me, that’s a very
useful innovation, giving me total assurance
about the quality of the foods I eat.
The more I know, the easier it is to make
good choices.”

Feeling confident about what’s
on your plate also means:

CHINA

BRAZIL

BELGIUM

Guaranteeing
food safety
In China, Carrefour
created its own network
of 37 mini-laboratories,
which perform
260,000 quality tests each
year on the food products
sold in stores. It’s a
powerful link in the bond
of trust between
Carrefour and Chinese
consumers.

Georeferencing
beef farmers
Carrefour has
an innovative satellite
georeferencing system
to monitor whether its
Brazilian beef farmers
are complying with strict
environmental and social
standards. The Group
has banned beef raised
in deforested areas from
its shelves.

Providing better
information thanks
to Nutri-Score
Carrefour applies
Nutri-Score(1) labelling
to all of its own-brand
products sold in Belgium,
allowing customers
to check a product’s
nutritional quality
at a glance.

FRANCE

FRANCE, SPAIN

Telling you more
with Open Food Facts
Carrefour has registered
all of its own-brand food
products on the Open Food
Facts community platform.
Simply scan a product
with your smartphone to view
its Nutri-Score(1), the extent
to which it was processed
(NOVA classification)
and all its nutritional data.

Installing cameras
in slaughterhouses
In France and Spain, Carrefour
has asked all slaughterhouses that
supply meat to install cameras
onsite, so it can monitor
the conditions in which animals
are slaughtered in real time.
That transparency campaign
is being conducted jointly with
France’s Œuvre d’assistance
aux bêtes d’abattoir (OABA) and
Equalia, a Spanish NGO.

(1) Nutri-Score: a logo developed by France’s national public health agency, Santé publique France, which summarises
a product’s nutritional quality on a scale of A to E.

16
Carrefour Quality Lines
currently offer total
traceability using
blockchain technology
in 6 countries.

53,000
quality audits and more
than 3,000 external
panels conducted
at Carrefour production
sites in 2018.

1,600
customers surveyed
each year by an
independent body
commissioned by
the Consumer Service
Department on how
well their requests
are processed.

90%
of production sites
for Carrefour brand
products are certified
by international
organisations
(such as International
Food Standard).

100%

of French
slaughterhouses
supplying Carrefour brand
products will be audited
by an independent entity
in 2019.

THE FOOD TRANSITION FOR ALLCARREFOUR 2018 Receiving
a warm welcome
and good advice

Carrefour’s more than 360,000 employees are on
the front line with customers, partners, and stakeholders
to help as many people as possible to eat well and
to realise our shared ambition of becoming the world
leader in the food transition for all. To achieve this,
Carrefour offers a broad training programme based
on developing knowledge and expertise in the key areas
of food safety and quality, the digital transformation
and customer relations. At the same time, the company
is creating a cooperative network, spanning the entire
Group and open to its partners, to share its strategic
objectives, accelerate innovation, and exchange best
practices, including those arising out of its global
Act for Food programme. Carrefour is also reinforcing
its policy of equality and inclusion, realising that having
diverse talent within the Group is the best way to understand
the diversity of its customers and their expectations.
Finally, the Act for Change programme, to support
employees through the Group’s transformation, was
launched in early 2019.

Our action plan
Develop and expand our
expertise in organic products

Build on our know-how
in nutrition and health

Increase the number of Carrefour
schools and training courses
devoted to fresh foods

Enhance our expertise in digital
technology, omni-channel
retailing and e-commerce

Accelerate the sharing of best
practices among countries,
stores and teams

Attain gender equality
in the workplace and earn
the GEEIS(1) certification in
all countries where Carrefour
has stores

Our objective
Train

100%

of our employees in the key areas
of the food transition for all

(1) Gender Equality European and International
Standard.

A N O V E R V I E W
O F A C T F O R F O O D ,
F R O M O U R O F F I C E S
T O O U R S T O R E S

T H E T R A I N I N G D I R E C T O R

Véronique Mort
Director of Training,
Carrefour France

“We have developed a special
e-learning course on organic
products for Carrefour
France’s 110,000 employees.
Made up of 10 modules, the online course has 2 aims:
to enhance our knowledge of organic agriculture
and to learn in detail about the Group’s strategy and
initiatives to promote delicious, organic, local food that
is widely affordable, everywhere, every day. The course
alternates among different modes of teaching, including
videos, informational summaries, and self-assessment
tests, to help participants acquire knowledge. With e-learning,
we can provide a basic level of training on a broad scale.
We are also implementing specialised courses that meet
the specific needs of both the various business functions
and our ambitious goals for growth in organics.”

CARREFOUR 2018THE FOOD TRANSITION FOR ALLT H E C O M M U N I C A T O R

T H E M A N A G E R

Michele Masetti
Director of the Carrefour
hypermarket in Carugate, Italy

“In September 2018,
the ‘Act for Food
On Tour’ bus parked
in front of our Carugate
hypermarket.
On the bus, a team of trainers gave
the store’s employees a closer look at
Carrefour’s worldwide Act for Food
programme, which had been launched
several days previously. A series of
activities, including workshops, serious
games and videos, gave us an in-depth
understanding of Act for Food, which
includes concrete commitments
to promote healthy eating and the food
transition for all, and allowed us to
discuss the first initiatives being rolled out
in stores. It was a unique, fun, and effective
way for us to learn about the programme,
and it put the whole team in the right
mindset for the launch.”

T H E T A L E N T
D I S C O V E R E R

“In 2018, we signed
a partnership with
CEU San Pablo
University in Madrid.
As part of the partnership, we worked
with Professor Varela, a noted Spanish
nutritionist, to develop a training curriculum
for all Carrefour Spain food buyers
and managers. The programme covers
every aspect of nutrition and eating well,
including the components of a healthy
diet, AECOSAN(1) recommendations,
and food preservation processes. It helps
our buyers hone their expertise and increases
our ability to become the leader and gold
standard in the food transition for all.”

(1) Spanish agency for consumer affairs, food safety
and nutrition.

Gloria Cuadrado
Director of Talent Management,
Carrefour Spain

Claudia Rusu
Catalogues & Communications Manager,
Carrefour Romania

“The store teams are the first
Carrefour ambassadors our
customers meet and the
primary representatives of
our Act for Food programme.
That’s why, in September 2018, we organised a special
event at the Sala Palatului(1) in Bucharest for the
4,000 employees of our Romanian stores. After a private
concert by Andra, a very popular singer here, we shared
the meaning behind Act for Food and its concrete
implications. In particular, we discussed the importance
of going beyond food products with our customers
by explaining the history and methods of the farmers
we support, as well as sharing culinary traditions, recipes
and tips for eating healthy, fresh, local, homemade food.
At the end of the day, the teams had the basic information
they needed to apply Act for Food in the field based
on our four pillars: organic, own brands, Carrefour Quality
Lines, and the partnership with farmer co-op Vărăşti.
Employees were also able to learn about Act for Food
from a global perspective, as it relates to everything
from reducing food waste to promoting animal welfare.”

(1) A well-known concert and conference venue in Bucharest.

THE FOOD TRANSITION FOR ALLCARREFOUR 2018
T H E M O T I V A T O R

Providing a warm welcome
and guidance also means:

Marta Bobrowska
Manager, Digitalents mentor,
Learning & Development,
Carrefour Poland

“A volunteer ‘digitalent’
has been appointed in each
of our Polish stores.
Employees of the store can go to this person for help
on anything related to the digital transformation
(Scan & Go service, G Suite collaborative tools,
e-couponing, etc.). All 240 of the digitalents currently
working in Carrefour Poland’s supermarkets and
hypermarkets receive special training. They are
supported by a mentor and organised into taskforces
on a collaborative platform to accelerate the sharing
of ideas, knowledge, and practices. They play a very
active role in the digital transformation of the stores
and in the design and roll-out of new tools and new
services to meet the needs expressed by our customers.
They have already become a top-notch force for
implementing our digital transformation in keeping
with the expectations of Polish consumers.”

WORLD

FRANCE

Integrating more
digital expertise
As part of a strategic
global partnership signed
with Google in June 2018,
a thousand Carrefour
managers and engineers
are receiving
Go Transform training
from Google in the fields
of digital services
and e-commerce.

Rewarding
innovation
Through the international
Food Transition Store
Challenge, Carrefour
recognises store
employees who have
designed and
implemented the best
initiatives to promote
healthy, affordable food
for everyone.

Committing
to gender equality
in the workplace
Carrefour is working
towards Gender
Equality European and
International Standard
(GEEIS) certification,
which evaluates the
efforts taken to achieve
gender equality in the
workplace. Carrefour has
earned the certification
at Group level and
in seven countries
(Argentina, Brazil, Spain,
China, France, Italy and
Romania). Objective:
100% of countries
certified by 2020.

ARGENTINA

Training tomorrow’s
leaders
In 2018, more than
120 employees entered
the store manager
training school created
by Carrefour Argentina
to encourage internal
promotion and provide
the next generation
of managers with
the keys to the food
transition for all.

POLAND

Enhancing
our customer culture
In 2019, Carrefour will
train 13,000 employees
and 2,500 managers
in Poland in innovative,
customer-centric retailing
as part of the LEON
programme.

CHINA

Excelling in fresh foods
In 2018, the Carrefour
China Fresh School
trained more than
1,100 employees in fresh
food-related professions,
building the Group’s
capacity to offer safe,
healthy products every
day in China.

49.5%
of new managers,
61.1% of new directors
and 47% of new senior
directors were
promoted from within
the company in 2018.

6.36%
The percentage of
people with disabilities
employed in Carrefour
France hypermarkets
and supermarkets.
Across all countries,
people with disabilities
accounted for 3.4% of
Carrefour’s workforce
in 2018, with a target
of 4% by 2025.

2,000
employees will be
identified and recognised
as “superheroes” of the
food transition in stores
by 2020.

3.7
million hours of training
were delivered in 2018.

9,700

employees received
training on the organic
or fresh foods market
in 2018.

THE FOOD TRANSITION FOR ALLCARREFOUR 2018
Doing more
for the planet

Achieving the food transition for all by promoting
sustainable agriculture and bringing healthy eating
within everyone’s reach is expressed in a comprehensive
Carrefour policy that incorporates social and
environmental responsibility. That policy is audited
each year, and reflected in regularly measured targets
that spur Carrefour’s teams towards continuous
improvement. From fighting deforestation to preserving
marine resources and reducing food waste, the Group
acts in close partnership with its stakeholders (suppliers,
NGOs and non-profits, industry organisations, etc.).
Carrefour considers this the best way to meet
the expectations of its customers, whose consumption
choices express not only a desire to eat better, but also
high environmental and social standards. Eliminating
plastic pollution and preserving natural resources rank
among their highest priorities.

Our action plan

Eliminate raw materials
produced via deforestation
in Carrefour brand products

Reduce or eliminate plastic
packaging by 2025

Minimise food waste by 2025

Recover all waste generated
by stores

Reduce our water and energy
consumption, and our
greenhouse gas emissions

Our objective
Every year, achieve

100%

of our CSR & Food Transition Index,
which measures our performance
on 17 environmental
and social priorities.
In 2018, we achieved
104% of the index.

A N O V E R V I E W
O F P A C K A G I N G ,
F R O M E C O - D E S I G N
T O R E C Y C L I N G

T H E D E S I G N E R

Martine Loyer
Global Director,
Carrefour Own Brands Business

T H E P R O D U C E R

“Today’s customers
are much more conscious
of their impact.
They have an increasingly global
understanding of what they consume,
and that includes packaging. According
to Nielsen, 87% of consumers say that
plastic pollution is a concern for them.
As part of the New Plastics Economy
initiated by the Ellen MacArthur
Foundation, Carrefour has committed
to using 100% recyclable, compostable,
or reusable packaging by 2025 for its
Carrefour brand products. In 2018,
we undertook a complete inventory
of our 10,000 food items and began
to eliminate plastic packaging in
the cheese, fresh produce, and poultry
sections while expanding our offering
of non-packaged organic products.
This initial effort saved 165 tonnes
of plastic. In parallel, we are working
to introduce reusable packaging.
Switching from disposable to reusable
is a real paradigm shift, which requires
the participation of all our suppliers
and partners. It’s a long-term effort
in which we must succeed.”

“Carrefour and Compagnie
Fruitière worked together
to eliminate the plastic bags
in which our organic bananas
were packaged
to distinguish them from conventionally grown fruits.
After consulting with packaging experts, we developed
a tag made of recycled material, which eliminates
the extra-handling for fragile bananas in order to put
them in bags and provides a cleaner, more appealing
presentation on the shelf. This has enabled us to save
66 tonnes of plastic each year. We would like to
gradually expand this approach to all our organic fruits.
This responsible choice demonstrates that it is perfectly
possible, with enough motivation and creativity, to eliminate
plastic packaging.”

Jérôme Fabre
Chairman and CEO,
Compagnie Fruitière group

CARREFOUR 2018THE FOOD TRANSITION FOR ALL“In my own life, inspired
by Béa Johnson(1), I buy
my food in bulk and
contribute to ‘zero
waste’ brainstorming
groups on social media.
People often visit the groups asking
how to eliminate packaging from meat,
deli products, cheese, fish, pastries, etc.
That gave me the idea of trying a
one-week test, where we would invite
customers at our Carrefour hypermarket
in Bierges to bring in their own containers
and produce bags for all their fresh food
purchases. The idea had a big impact,
and we immediately expanded it to all
of our integrated stores in Belgium:
39 hypermarkets and 44 Carrefour Markets.
Now we’ve also introduced it in France,
with the tagline ‘Apporte ton contenant’
(Bring your container), and it is being
considered in several other countries as
part of our global Act for Food programme.”

(1) Béa Johnson founded the Zero Waste Home movement.

Henri Brugère
Circular Supply Chain Manager,
Loop

T H E S U S T A I N A B L E
D E V E L O P M E N T
M A N A G E R

Doing more for the planet
also means:

WORLD

FRANCE

Protecting
marine ecosystems
In 2007, Carrefour
stopped selling several
threatened species of fish.
The Group gives
preference to abundant
species and MSC-
and ASC-certified fish
from responsible fisheries
and aquaculture.

Reducing or eliminating
chemical pesticides
The Carrefour Quality
Lines are gradually
implementing
agroecological practices
that include eliminating
synthetic pesticides,
protecting pollinators,
and supporting
biodiversity. Carrefour
has already substantially
reduced chemical
pesticides in nine
pilot lines.

Preserving
biodiversity
Since 2007, Carrefour
France has partnered
with 16 organic farmers
to distribute fruits
and vegetables grown from
farmers’ seeds not listed
in the official European
catalogue. In so doing,
Carrefour is taking a stand
against the standardisation
of seeds, flavour and living
things: 90% of our fruit
and vegetable varieties
have disappeared in less
than a century.

BRAZIL

WORLD

FRANCE

Combatting
deforestation
As part of its 2020
Sustainable Forests plan,
established in partnership
with the WWF, Carrefour
has set up advanced
traceability systems in
Brazil for beef to ensure
that no own-brand
products directly
or indirectly cause
deforestation.

Ensuring
animal welfare
In partnership with
Welfarm, Carrefour
is developing product
ranges that meet strict
specifications in terms
of animal welfare.
In Europe, Brazil
and Taiwan, for example,
Carrefour is discontinuing
the sale of own-brand
eggs from caged
chickens, with the aim
of eliminating them
completely by 2025.

Tackling food waste
From April 2019,
the Too Good To Go app
will allow customers in
France’s 1,022 Carrefour
Market stores to take
advantage of low prices
on products close to their
expiry dates. Every day,
baskets of products
made up by the Carrefour
teams will be offered
for sale via the app and
users can then collect
them from stores.

Hélène Delabye
Quality and Sustainable
Development Manager,
Carrefour Belgium

T H E P A R T N E R

“Loop, which was presented
at the Davos Forum in January,
is reinventing the ‘milkman
model’ for e-commerce.
For the first phase, in May 2019, we’ll be launching
Loop in Paris, New York, and then London. Customers
will be able to visit maboutiqueloop.fr to order about
100 products from the biggest global brands, including
Carrefour Bio, which have partnered with the project.
They’ll be delivered in durable, returnable containers
that the courier will collect again after use. The containers
will be cleaned, sanitised, and put back into the loop.
As the first retailer to join the movement, Carrefour is
contributing its logistics expertise, customer knowledge,
and sheer scale. The goal, after the experiment in Paris,
is to integrate Loop into Carrefour’s e-commerce model.
This would be a decisive step towards the large-scale
introduction of returnable, circular, zero-waste packaging.”

69
The score assigned
to Carrefour in 2018
by RobecoSAM,
which assesses CSR
performance at
3,400 listed companies.
That score puts
Carrefour among
the top 5 global
retailers in the Dow
Jones Sustainability
Index World, the
leading global index.

500
As part of its efforts to
combat food waste,
Carrefour has extended
the use-by dates and
extended or eliminated
the best-before dates
on 500 own-brand
products.

–31%
Carrefour has reduced
its greenhouse gas
emissions by 31% since
2010, in line with its
target of an overall
decrease of 40% by
2025 and 70% by 2050.

200

Carrefour lorries
in France run on
biomethane, a green
fuel produced using
food waste from stores.
The Group plans to
have a fleet of 400 such
lorries in 2019.

THE FOOD TRANSITION FOR ALLCARREFOUR 2018
A year
of action

for
you

A BUSINESS MODEL SUPPORTING
THE FOOD TRANSITION FOR ALL

Deploy a simplified
and open
organisation

Achieve productivity
and competitiveness
gains

Create an
omni-channel
universe of reference

Overhaul the offer
to promote
food quality

CAPITAL
AND RESOURCES

Financial capital
€84,916 million in gross sales
€2,656 million in other income
(finance companies, real estate
development, leases)
€94 million in financial income
€6.75 million budget
for the Carrefour Foundation

Human and intellectual capital
360,000 employees
300 trades and professions
Worldwide agreement signed
with the UNI Global Union

Land and real estate capital
12,000 stores in over 30 countries
1,600 Drive outlets
1,000 bank branches, insurance
agencies and travel agencies
120 warehouses around the world
Head offices and administrative buildings

Digital capital
E-commerce services
A single e-commerce website
in each country
1.3 million connections to the websites
per day
60 million loyalty cardholders
21 million fans on social media

Relational capital
104 million customer households
Purchasing partnerships (Système U, Tesco)
Digital partnerships (Google, Tencent)
Long-standing partnerships
with the WWF and the FIDH
27,800 partner producers
for the Carrefour Quality Lines
2,600 production facilities to supply Carrefour
own-brand products

Natural and environmental capital
Fossil and renewable energies
Natural resources from oceans, forests,
land and other ecosystems

Order
preparation
facilities

Processing
facilities

Production
facilities

Services
• Banking
and insurance
• Travel agency
• Vehicle hire

Drive

Stores

Shopping
centres

Service
stations

CONSUMERS

CATERING
PROFESSIONALS

Pedestrian
drive-through

Convenience stores
and Services (Relais Colis,
La Poste, ticket booking)

Home
delivery

Warehouses

Cash & Carry

Carrefour Lab
and headquarters

Flow of goods

Producers‘ operations

Suppliers‘ operations

Integrated and franchised Carrefour operations

CREATING SHARED VALUE

Customers and consumers

Nobody in France is more than 8 minutes
away from a Carrefour store
Express delivery services are being extended
in 9 countries
53,000 quality audits
and 3,000 panel studies performed
100 controversial substances banned from
Carrefour-brand products
16 production chains now traceable using
blockchain technology in 6 countries
(at end-2018)

Direct and indirect employees

€6,230 million in wages, salaries and
payroll taxes
11.4 hours of training per employee per year
1,353 social audits performed at our suppliers

Suppliers and service providers
€66,290 million in merchandise
and services purchased
508 Carrefour Quality Lines
(€923 million in net sales)
3,300 organic products
(€1.8 billion in net sales)
210 farmers supported in transitioning
to organic practices in 2018

Corporate citizenship
and community development

€1,093 million in income and other taxes
€1,909 million in payroll taxes
€262 million in net finance costs
72 projects supported by the Carrefour Foundation
100 million meals donated to food aid charities

Shareholders and financial institutions
€523 million in dividends paid to parent
company shareholders
€356 million in expenses on financial
transactions

Environment

31% reduction in CO2 emissions (vs 2010)
67% of waste recovered and reused
37.3% of seafood products are from sustainable
sources
1,867 tonnes of packaging avoided since 2017

THE FOOD TRANSITION FOR ALLCARREFOUR 2018
1

DEPLOY A SIMPLIFIED
AND OPEN
ORGANISATION

Carrefour is putting in place an agile,
responsive, customer-focused organisation
which is open to new partnerships in order
to accelerate the transformation and make
the Group as efficient as possible.
Simplify the organisation (rationalising its store
network, breaking down internal silos, streamlining
procedures and decision-making).
Create an extensive partner ecosystem that can
drive growth and performance (purchasing, digital
and e-commerce, non-food).
Strengthen our internal focus on customer
relations and digital agility.
Launch, in early 2019, Act for Change, a
programme to support colleagues through
the Group’s transformation.

ACHIEVE PRODUCTIVITY
AND COMPETITIVENESS
GAINS

Carrefour is implementing synergies and
economies of scale and reducing its management
costs (aiming to achieve gross savings
of €2.8 billion in 2020) in order to increase its
investment capacity and price competitiveness.
Maintain constant financial discipline (mass purchasing,
optimisation of logistics, administrative cost savings).
Focus investment activities on strategic priorities
(food transition, omni-channel platform).
Enhance price attractiveness in stores and online.

Our
strategy
Carrefour
2022

Carrefour has set
itself a goal that will
benefit all:
enabling everyone to
eat better food – food
that’s healthier, fresher,
more organic, more
local. To achieve this,
the Group has
embarked on a major
plan to become the
world leader in the food
transition for all.
The plan is based
on four pillars.

CREATE AN OMNI-
CHANNEL UNIVERSE
OF REFERENCE

Carrefour is closely integrating its branded
stores and online offering in order to provide
its customers with an omni-channel platform
that is fluid, intuitive, attractive, and offers
benefits and services that make their everyday
lives easier.
Expand the branded store network as part
of an omni-channel strategy.
Strengthen the consistency and attractiveness
of the online offer via a single website.
Roll out the services (Drive, click & collect, home
delivery) and infrastructure (supply chain, CRM) that
will enable Carrefour to become the leader in food
e-commerce by 2022.

OVERHAUL THE OFFER
TO PROMOTE FOOD
QUALITY

Carrefour aims to help more people
eat better by offering healthy, balanced,
authentic food produced by sustainable
agricultural practices to as many people
as possible at an affordable price.
Strengthen leadership position in fresh produce by
focusing on Carrefour Quality Lines.
Achieve €5 billion in sales of organic food by 2022
by helping farmers switch over to organic methods
and building a wide selection that is accessible
to every shopper.
Use own-brand products to spearhead the
promotion of quality food for all.

THE FOOD TRANSITION FOR ALLCARREFOUR 2018EVERYONE WORKING
TO PROMOTE BETTER EATING

At the same time as it is radically transforming its model,
the Carrefour group is embarking on a programme of
unprecedented scale to develop the expertise and knowledge
of its more than 360,000 employees on the core challenges
of the food transition for all and omni-channel retailing.

Carrefour’s human resources teams introduced
awareness and training campaigns worldwide during
2018, in support of the first steps in the Group’s
transformation.
Act for Food
In September 2018, for example, to mark the launch
of Act for Food, a global campaign detailing our actions
to promote better eating, the teams organised several
hundred dedicated events and sessions in each country.
Through these, all of the Group’s employees were able
to share the challenges, strategy, goals and local actions
involved in Act for Food.
Go Transform
Similarly, innovative actions and training sessions
– including several in partnership with Google – were
designed to increase employees’ digital skills and agility,
both in stores and in support roles, and thereby
accelerate the Group’s digital transformation. Among
other initiatives, in 2018 Carrefour and Google launched
the Go Transform programme: 1,000 Group managers,
representing all business functions and all countries,
received specific training in order to become
“Carrefour 3.0” ambassadors within their own teams.
Act for Change
In 2019, change management activities will be stepped
up and structured as part of a comprehensive initiative:
Act for Change. Based on a detailed audit, country by
country, trade by trade, of the knowledge and skills to be
developed in the key areas of the digital transformation
and the food transition for all, Act for Change will formally
set out our values and commitments, incorporating
a wide range of support programmes, training sessions
and events to mobilise the workforce. With Act for Change,
Carrefour is developing a programme of concrete actions
for its employees to support the Group’s transformation.

In 2018, Carrefour successfully
completed five priority HR
actions

We conducted training on the key
knowledge and skills required for the food
transition for all (organic, fresh, short supply
chains, etc.) and the digital transformation.

We stepped up the Group’s commitment
to tackling violence against women.

We strengthened Carrefour’s policy
on promoting diversity, equal opportunity
and professional parity.

We increased the number of HR indicators
we monitor as part of the Group’s CSR
policy (appointment of women to
management posts, amount of training
per employee, rate of employment of
people with disabilities, etc.).

We expanded our telecommuting
and remote working solution to include
virtually every country, in parallel with
the introduction of the latest collaborative tools.

Working for you
also means:

WORLD

Introducing green remuneration
To manage its CSR and food transition activities,
Carrefour has introduced a composite index
comprising 17 indicators covering 4 areas:
products (sales of organic products, sustainable
fishing, sustainable forests, etc.), stores
(reduction in CO2 emissions, food waste, etc.),
customers, employees. Every year, the Group’s
performance against these 17 goals is audited
by an independent body and then made public.
The results obtained are used in calculating
the remuneration paid to managers.

Tackling violence
against women
In October 2018, Carrefour and the UNI
Global Union renewed their global agreement
to promote social dialogue, diversity,
and protection of basic rights and principles
in the workplace. They enhanced the
agreement by adding a shared commitment
to combat all forms of violence against
women at work.

WORLD

Achieving gender equality
in the workplace
Carrefour is working towards Gender Equality
European and International Standard (GEEIS)
certification, which evaluates the efforts
taken to achieve gender equality in the
workplace. Carrefour has earned GEEIS
certification at Group level and in seven
countries (Argentina, Brazil, Spain, China,
France, Italy and Romania). Goal: 100%
of countries certified by 2020.

EUROPE

Integrating people with disabilities
In Europe, Carrefour has increased the number
of people with disabilities it employs by 20%
in five years. This has been achieved through
a proactive inclusion policy followed in
each country. With its policy, Carrefour Spain
was named the best European company
for including people with disabilities(1).
In France, more than 6% of employees
in Carrefour hypermarkets and supermarkets
are disabled workers. This is higher than the
legal threshold, as part of company agreements
that have been regularly reinforced over the last
twenty years. Worldwide, the Group employs
more than 12,000 people with disabilities,
representing 3.4% of its workforce. The goal
is to increase this to 4% by 2025.

(1) Employment for All Awards 2017 – European Association of Service Providers for Persons with Disabilities (EASPD).

41%

of the Group’s managers were women in 2018.

THE FOOD TRANSITION FOR ALLCARREFOUR 2018STRIVING EVERY DAY
TO ACHIEVE FOOD SOLIDARITY

For more than twenty years, Carrefour and its Foundation have
pursued an innovative solidarity policy, in partnership with
numerous charities and NGOs throughout the world, focused
on two major challenges – supporting the farming sector
and combatting food waste – as a way to help people eat better,
expand employment opportunities and aid those most in need.

The Group and the Carrefour Foundation are working
to promote an inclusive food transition that benefits
small farmers as well as low-income households
and vulnerable people. First, they take action to support
producers who are moving towards sustainable
agricultural practices. To take one example which is
characteristic of our approach: in France, the Carrefour
Foundation and WWF France are providing financial
and technical support to help 66 small milk producers
in the Grand-Ouest region of the country to switch over
to organic farming, while our stores are guaranteeing
their volumes and purchase price over a period of several
years. The Foundation also supports charity farms and
urban market gardens which employ people looking
for work and supply fresh, organic fruit and vegetables
at a low price via short supply chains. The partnerships
forged with Workshops Without Borders in Romania,
the Huerta Niño Foundation in Argentina, and the Réseau
des Jardins de Cocagne in France typify this approach.
Combatting food waste
The second focus of our efforts is combatting waste
by donating surplus food. In this area, the Carrefour
Foundation is contributing to a number of pioneering
projects which make use of surplus food while also
improving vocational integration. This includes support
for the Italian NGO Food for Soul, which opens community
restaurants that transform surplus food into low-cost
gourmet meals, as well as for the Red Cross in Taiwan,
which has established an anti-waste charity cafeteria,
and for French charity Expliceat, which turns bakers’
unsold bread into flour and cakes. For six years,
Carrefour has also been the leading private partner
for food banks (see opposite).
In addition, the Carrefour Foundation provides
emergency humanitarian assistance to victims of
disasters or accidents, drawing on the Group’s logistical
expertise to quickly transport food and aid. Every time,
our teams have been there.

Carrefour, leading private partner
to food banks

Donations of school equipment to
disadvantaged children in Spain, clothing drives
in Brazil, Boucles du Cœur in France(1)…
Each of the 12,000 Carrefour stores conducts
or promotes multiple solidarity initiatives in
partnership with local non-profit organisations.
In particular, all of our Company-owned stores
work together with branches of food banks
and large charities (Red Cross, Restos du Cœur,
Secours populaire, etc.), to which they donate
their unsold stock and products with short
expiry dates. Consequently, Carrefour is the
leading private food donor, with the equivalent
of 100 million meals distributed annually
to charities.

Every year, our teams also take part in a vast
collection campaign for food banks, launched
in 2013 by the Carrefour Foundation. From
Taipei to Rio de Janeiro via Madrid, in 2018
nearly 2,500 Carrefour stores in 10 countries
collected the equivalent of 10 million meals
from their customers. For its part, since 2002
the Carrefour Foundation has funded the
purchase of 254 refrigerated vehicles and
110 cold stores and rooms for food banks
and charities. At Carrefour, solidarity is a
long-term initiative which mobilises all stores
and business functions.

(1) Annual drive to collect donations for charities working with children
in difficult situations.

Striving for you
also means:

CHINA

BRAZIL

Promoting the “eating well” concept
The Carrefour Foundation and the China Youth
Development Foundation have devised an original
programme known as “One store, one school,
one farm”. The aim is to raise children’s awareness
of the importance of a healthy, balanced diet.
More than 3,000 Chinese pupils have attended
gardening and agricultural workshops on a farm,
followed by baking and nutrition lessons
in a nearby Carrefour store, giving them the chance
to learn about the various aspects of eating well.
Forty stores were involved in the project in 2018.
Over the next three years, it is set to be extended
to 100 stores, 50 schools and 50 farms.

Combatting deforestation
The Brazilian foundation IDH, which
specialises in sustainable agriculture,
and the Carrefour Foundation worked
together to build a cattle farming
industry in the State of Mato Grosso that
does not contribute to deforestation.
Involving more than 450 farmers,
the project is developing responsible
management of pasture land and
the cultivation of soya to protect
the environment and keep
the indigenous forest intact.

FRANCE

POLAND

Promoting charitable
organic production
The Carrefour Foundation funds
and supports the Réseau des Jardins de
Cocagne, the network behind the creation
of more than 100 charity gardens across
France. These kitchen gardens employ
people seeking a foothold in the job market.
They produce organic fruit and vegetables,
which are sold via short supply chains in
the form of charity boxes at affordable
prices to low-income families.

Supporting the switch
to organic farming
The Carrefour Foundation and Polish
NGO AgriNatura have forged
a partnership to support 20 market
gardeners in the Wielkopolska region
as they switch over to organic methods.
The initiative will serve as a pilot scheme
for the roll-out of organic farming
throughout the region as part of the
“Broadening Access to Organic Produce”
programme developed by AgriNatura.

projects in 13 countries supported by the Carrefour Foundation,
with a total budget of €6.7 million in 2018.

THE FOOD TRANSITION FOR ALLCARREFOUR 2018A STRATEGY DRIVEN
BY ACTIVE GOVERNANCE

The role of the Group Executive Committee is to maintain oversight
of the Group and monitor the implementation of its transformation
plan. It comprises Group managers and individuals from other
backgrounds who contribute complementary expertise.

1. Alexandre Bompard
Chairman and Chief
Executive Officer

2. Amélie Oudéa-Castéra
Executive Director
E-Commerce, Data and
Digital Transformation

3. Marie Cheval
Executive Director
Financial Services and
Hypermarkets France

4. Jacques Ehrmann
Executive Director
Assets, International
Development
and Innovation

5. François-Melchior
de Polignac
Executive Director
Merchandise, Supply
and Formats

6. Matthieu Malige
Chief Financial Officer

7. Jérôme Nanty
Executive Director
Human Resources
for the Group and France

8. Laurent Vallée
General Secretary

9. Dominique
Benneteau-Wood
Executive Director
Communication for
the Group and France

10. Frédéric Haffner
Executive Director
Strategy and M&A

11. Pascal Clouzard
Executive Director France

12. Guillaume de Colonges
Executive Director
Northern and Eastern
Europe, (Belgium, Poland
and Romania)

13. Thierry Garnier
Executive Director Asia
(China and Taiwan)

14. Noël Prioux
Executive Director
Latin America
(Brazil and Argentina)

15. Rami Baitieh
Executive Director Spain

16. Gérard Lavinay
Executive Director Italy

THE FOOD TRANSITION FOR ALLCARREFOUR 2018

A STRATEGY DRIVEN
BY ACTIVE GOVERNANCE

The Board of Directors approves the Company’s business strategy and oversees
its implementation. It examines and makes decisions on major transactions.
Its 19 members are kept informed of market evolutions, the competitive environment
and the key issues facing the Company, including with regard to CSR.

Composition
of the Board of Directors
in 2018

Specialised Committees
of the Board of Directors in 2018
The Board of Directors has set up five specialised
Committees that review any questions submitted to them
for their opinion by the Board of Directors or the Chairman
of the Board of Directors.

Alexandre Bompard

Audit Committee

Chairman and Chief Executive
Officer

Philippe Houzé
Lead Director

Bernard Arnault(4)

Nicolas Bazire

Jean-Laurent Bonnafé

Thierry Breton(1)

Flavia Buarque de Almeida

Stéphane Courbit(1)

Abilio Diniz

Aurore Domont(1)

Charles Edelstenne(1)

Thierry Faraut(2)

Stéphane Israël(1)

Mathilde Lemoine(1)

Patricia Moulin Lemoine

Amélie Oudéa-Castéra(1)(3)

Martine Saint-Cricq(2)

Marie-Laure Sauty de Chalon(1)

Lan Yan(1)

Chair: Stéphane Israël(1)
Members: Nicolas Bazire, Philippe Houzé,
Mathilde Lemoine(1), Amélie Oudéa-Castéra(1)(3)

Compensation Committee

Chair: Thierry Breton(1)
Members: Nicolas Bazire, Stéphane Courbit(1),
Charles Edelstenne(1), Lan Yan(1)

Appointments Committee
Chair: Charles Edelstenne(1)
Members: Flavia Buarque de Almeida
Aurore Domont(1), Thierry Faraut(2),
Philippe Houzé, Amélie Oudéa-Castéra(1)(3)

CSR Committee

Chair: Aurore Domont(1)
Members: Patricia Moulin Lemoine,
Martine Saint-Cricq(2),
Marie-Laure Sauty de Chalon(1)

Strategic Committee

Chair: Alexandre Bompard
Vice-Chair: Abilio Diniz
Members: Nicolas Bazire, Stéphane Courbit(1),
Philippe Houzé, Amélie Oudéa-Castéra(1)(3)

Changes in the composition
of the Board of Directors and
specialised Committees in 2019
At its meeting on January 22, 2019, the Board of Directors
decided, on the recommendation of the Appointments
Committee, to appoint Claudia Almeida e Silva as
Independent Director to replace Amélie Oudéa-Castéra
for the remainder of her term of office, i.e. until the
Shareholders’ Meeting called to approve the financial
statements for the year ending 2020. Ratification of her
appointment will be sought at the Shareholders’ Meeting
to be held on June 14, 2019.
At its meeting on April 24, 2019, and after acknowledging
Bernard Arnault’s resignation, the Board of Directors
decided, on the recommendation of the Appointments
Committee, to appoint Alexandre Arnault as a Director
to replace Bernard Arnault for the remainder of his term
of office, i.e. until the Shareholders’ Meeting called
to approve the financial statements for the year ending
2019. Ratification of his appointment will be sought
at the Shareholders’ Meeting to be held on June 14, 2019.
In addition, the Board of Directors decided, on the
recommendation of the Appointments Committee,
to propose the renewal of the terms of office of
Flavia Buarque de Almeida, Abilio Diniz, Thierry Breton
and Charles Edelstenne at the Shareholders’ Meeting to be
held on June 14, 2019.
Lastly, at its meeting of April 24, 2019, the Board of Directors
decided, on the recommendation of the Appointments
Committee, to appoint Claudia Almeida e Silva to the Audit
Committee and the CSR Committee.

(1) Independent Director.
(2) Director representing employees.
(3) Director from June 15, 2018 to November 7, 2018.
(4) Director until April 15, 2019.
(5) Excluding directors representing employees.

members

meetings of the Board of Directors
and specialised Committees held
in 2018

95.8%

Attendance rate at meetings
of the Board of Directors
and specialised Committees

52.9%

Proportion of Independent Directors(5)

41.2%

women(5)

THE FOOD TRANSITION FOR ALLCARREFOUR 2018KEY FINANCIAL AND CSR FIGURES
IN 2018

Carrefour’s satisfactory performance in 2018 demonstrates the powerful transformation
momentum initiated by the Group to become the leader of the food transition for all.
In 2018, Carrefour established the CSR and Food Transition Index to steer its progress towards
the food transition and its other CSR goals. The index can be broken down into four areas:
products, stores, customers and employees. These areas each feature four or five strategic CSR
and food transition objectives. Carrefour uses the index to steer internal performance and
publish its results externally. Performance against these objectives is also used in calculating
annual executive compensation.

€76 billion

in net sales

Net sales by geographic region
(in billions of euros)

Asia
5.5

Latin
America
13.8

France
35.6

Europe
(excluding France)
21.1

Figures at December 31, 2018.

(1) Excluding exceptional items.

Recurring operating income

€1,905 M

Adjusted net income

€802 M

Free cash flow(1)

€1,088 M

Net financial debt

€3,785 M

Investments

€1,611 M

Carrefour’s 2018 CSR & Food Transition Index = 104%

PRODUCTS

2018 OBJECTIVE

2018 RESULT

2018 SCORE = 105%

1. €5 billion in sales of organic products by 2022

€1.71 billion

€1.76 billion

2. 10% of Carrefour Quality Lines products within fresh

products by 2022

3. 50% of Carrefour seafood products sold come

from responsible fishing by 2020

4. Implementation of a Sustainable Forests action plan

for products linked to deforestation by 2020

5. 10,000 tonnes of packaging saved by 2025

6.9%

35%

50%

1,438 t

6.0%

37.3%

48.5%

1,867 t

103%

87%

106%

97%

130%

STORES

2018 OBJECTIVE

2018 RESULT

2018 SCORE = 101%

6. Reduce food waste by 50% by 2025 (vs 2016)

7. Recover 100% of waste by 2025

–

70%

–

67%

8. Reduce CO2 emissions by 40% by 2025 (vs 2010)

–26.7%

–28.5%

9. 2,000 employees identified as “food transition

superheroes” in stores by 2020

10 employees

–

95%

107%

100%

CUSTOMERS

2018 OBJECTIVE

2018 RESULT

2018 SCORE = 103%

10. 80% of customers identify food transition

in stores by 2022

11. 100% of countries roll out a programme focused
on local products and purchasing by 2020

12. 100% of countries implement an annual
Act for Food communication programme

13. 100% of countries roll out a Healthier Diet

action plan by 2022

50%

30%

100%

60%

63.8%

20%

100%

70%

129%

67%

100%

117%

EMPLOYEES

2018 OBJECTIVE

2018 RESULT

2018 SCORE = 102%

14. Women account for 40% of appointments

to key positions by 2025

and 100% of countries roll out GEEIS certification by 2020

15. Disabled employees account for 4%

of the Group’s workforce by 2025

23.1%

67%

3.38%

31%

75%

3.4%

16. 13 training hours per Group employee by 2025

12.3 hours

11.4 hours

17. 100% of countries implement an action plan

on health/safety/quality of life in the workplace by 2020

58%

67%

123%

101%

93%

114%

Carrefour supports the 17 Sustainable Development Goals (SDGs) set by the United Nations and adheres in particular to seven
priority SDGs, to which it contributes by means of the concrete objectives in its CSR & Food Transition Index.

THE FOOD TRANSITION FOR ALLCARREFOUR 2018Carrefour
Société anonyme with capital
of €1,973,132,097.50
652 014 051 RCS Évry

Carrefour head office
93, avenue de Paris
TSA 55555
91889 Massy Cedex
France

Investor Relations
investisseurs@carrefour.com

Shareholder Relations
contact@actionnaires.carrefour.com

Shareholders’ Club
Authorisation 93261
92535 Levallois-Perret Cedex
Tel.: 0 805 902 902
club@actionnaires.carrefour.com

Registered Shareholders
Société Générale Securities Services
32, rue du Champ-de-Tir
CS 30812
44308 Nantes Cedex 3, France
Tel.: +33 (0)2 51 85 67 89
Fax: +33 (0)2 51 85 53 42

Get the latest news on the Carrefour group at
www.carrefour.com

@CarrefourGroup

@Carrefour

Concrete actions for better food
actforfood.carrefour.com

Carrefour group would like to thank all those who have contributed to the production of this report.

Conception: Carrefour group Communications Department – June 2019.
Design and production:
Photo credits: Aurelio Rodriguez Ariza, Annabelle Brusseau, Walter Craveiro, Stefano Demarie, Getty Images, Nicolas Gouhier, Imaginyou/Eric Charneux,
Joanna Juchacz, Guillaume Mirand, Marta Nascimento, Carrefour photo library, all rights reserved.
Graphics: Stéphane Jungers.
Paper: The Carrefour group is committed to managing its paper purchases in a responsible manner. The paper used in this document is certified by the FSC® (Forest
Stewardship Council). This certification confirms compliance with a globally recognised set of principles and criteria for forest management. The goal of the FSC® is to promote
environmentally responsible, socially beneficial and economically viable forest management. Printing: This document was printed by a printer that has achieved Imprim’Vert®
certification, confirming that it meets the criteria for the management of hazardous waste, secure storage of hazardous materials and elimination of toxic products.

Carrefour
in 2018

The Carrefour group is one of the world’s
leading food retailers.
Our mission is to provide our customers with quality services,
products and food accessible to all across all distribution channels.
Thanks to the competence of our employees, to a responsible
and multicultural approach, to our broad territorial presence
and to our ability to adapt to production and consumption modes,
our ambition is to be the leader of the food transition for all.

CARREFOUR 2018

€84,916 M

in gross sales

363,862

employees

27,800

partner producers

€66,290 M

in goods
and services
purchased

1.3 million
visits to websites per day

508

Carrefour Quality Lines

worldwide

Figures at December 31, 2018.

300

trades
and professions

12,111
stores
and online sales
platforms
in more than
30 countries

01 Argentina
590 stores
89 hypermarkets
98 supermarkets
396 convenience stores
7 cash & carry stores
carrefour.com.ar

02 Brazil
435 stores
100 hypermarkets
49 supermarkets
120 convenience stores
166 cash & carry stores
carrefour.com.br

03 Spain
1,088 stores
205 hypermarkets
114 supermarkets
748 convenience stores
21 cash & carry stores
carrefour.es

04 France*
5,220 stores
232 hypermarkets
1,026 supermarkets
3,821 convenience stores
141 cash & carry stores
carrefour.fr

05 Belgium
794 stores
40 hypermarkets
451 supermarkets
303 convenience stores
carrefour.eu

* Mainland France.

06 Italy
1,083 stores
51 hypermarkets
412 supermarkets
605 convenience stores
15 cash & carry stores
carrefour.it

07 Poland
850 stores
89 hypermarkets
152 supermarkets
609 convenience stores
carrefour.pl

08 Romania
360 stores
35 hypermarkets
261 supermarkets
51 convenience stores
13 cash & carry stores
carrefour.ro

09 China
239 stores
212 hypermarkets
27 convenience stores
carrefour.com

10 Taiwan
128 stores
64 hypermarkets
64 supermarkets
carrefour.com.tw

Other

1,324 stores
267 hypermarkets
692 supermarkets
349 convenience stores
16 cash & carry stores

104
million

customer households

worldwide

100
million

meals donated
to food aid charities

www.carrefour.com
@CarrefourGroup

Société anonyme with capital of €1,973,132,097.50
Head office: 93, avenue de Paris – 91300 Massy – France
652 014 051 RCS Évry