Empty shelves and restricted purchases with shopping cards, what’s wrong with Carrefour?

[Business Records] Empty shelves and restricted purchases with shopping cards, what's wrong with Carrefour?

　　Chinanews.com, January 10th (Xie Yiguan, China News Finance reporter) "I went shopping in a supermarket and found that many products cannot be settled with shopping cards." Recently, residents in many places reported that Carrefour's shopping card consumption is limited, and some shelves are vacant. Phenomenon.

Carrefour responded to a reporter from China New Finance and Economics on the 9th that the company is actively coordinating and taking multiple measures to optimize the efficiency of the product supply chain and provide consumers with more product choices.

　　As the former "Whampoa Military Academy" in the retail industry, what happened to Carrefour recently?

The use of shopping cards in some stores is limited, and some consumers have saved thousands of yuan

　　"I'm afraid (the supermarket) will be closed in two days, so hurry up and use the shopping card."

　　On the 9th, when a consumer met a reporter at a Carrefour supermarket in Haidian District, Beijing, he said that because he was in a hurry to spend the balance of his shopping card, he wanted to try his best to choose products that could be paid with a shopping card, and after shopping around, the shopping cart was empty. Only accumulated more than 100 yuan of goods.

The picture shows that a certain yogurt drink is running out because shopping cards can be used for checkout.

Photo by China-Singapore Finance and Economics reporter Xie Yiguan

　　Like this consumer, on that day, many customers shuttled through the supermarket shelves, looking for products that can use shopping cards, and once they found them, they put the products in the shopping cart...

　　The reporter noticed that although there were only a few shelves in the supermarket that were vacant or that the stock was tight, many products were labeled with the words "Shopping card system is being upgraded, shopping card settlement is not supported for the time being, other payment methods can be purchased normally" , which makes many consumers distressed.

　　"I still have more than 6,000 yuan in my (shopping) card, how should I spend it?" A consumer sighed helplessly.

In the Carrefour supermarket, many products were labeled as not supporting shopping card settlement.

Photo by China-Singapore Finance and Economics reporter Xie Yiguan

　　When the reporter asked the staff of the supermarket, the reply he got was "

"

　　If I can't spend all the balance in the card, can I return the shopping card?

　　The reporter asked the Carrefour shopping card service personnel about this, and the other party said, "The card cannot be refunded now. If the supermarket is closed, it may be refunded."

The picture shows the checkout area of ​​Carrefour supermarket, many people are queuing.

Photo by China-Singapore Finance and Economics reporter Xie Yiguan

　　Not only in Beijing, according to media reports, recently, Carrefour stores in Shenyang, Kunming, Wuxi and other places have also experienced shopping card consumption restrictions. For example, it is stipulated that orders over 100 yuan can be settled with shopping cards for 15 yuan.

Stores in some areas are also empty of goods, and the prices of goods have also increased.

In the face of these phenomena, relevant departments in many places have also begun to intervene in investigations or interview relevant persons in charge of Carrefour.

Carrefour responds

　　Regarding the vacant shelves in some stores,

　　Regarding the rumors of "closing the door", Carrefour also responded that the company will continue to cultivate the Chinese market.

Consumers are requested not to believe or spread rumors, and to consume rationally.

　　In addition, the relevant person in charge of Beijing Carrefour also told the media that it will not withdraw from the Beijing market.

Previously, Carrefour in Kunming, Shenyang, Wuxi and other places all stated that they would not withdraw from the local market.

In a Carrefour supermarket, some customers are looking for products that can use shopping cards.

Photo by China-Singapore Finance and Economics reporter Xie Yiguan

　　Although Carrefour's response gave people a "reassurance", it is an indisputable fact that the number of Carrefour stores has decreased in recent years.

　　In 2019, Suning acquired an 80% stake in Carrefour China for 4.8 billion yuan.

Suning.com ’s financial report shows that in the

.

In 2021, Carrefour only opened 3 new stores, but closed 26 stores.

　　Suning.com also mentioned in its third quarterly report for 2022 that the company is still in a state of net profit loss. The very important factor is that Carrefour’s business is affected by multiple factors, resulting in a rapid decline in scale and high fixed rental costs. Apportionment.

In the third quarter, the company has comprehensively carried out Carrefour business adjustments, including closing some regional stores, focusing on operations in advantageous cities, and improving economies of scale.

　　While the business is not good and stores are closed frequently, the outside world also suspects that there is a problem in Carrefour's supply chain.

　　According to Beijing Business Daily, since 2022, incidents of Carrefour being chased by suppliers for payment have been frequently exposed.

Previously, suppliers in the southwest region revealed that from the second half of 2022, Carrefour supermarkets frequently defaulted on payment.

It is reported that when the supplier temporarily suspended its cooperation with Carrefour, Carrefour owed the supplier an outstanding payment of about 2.4 million yuan.

Why did the former "Whampoa Military Academy" in the retail industry encounter difficulties?

　　Carrefour, which is now in a predicament, was full of glory back then.

　　In 2006, the number of Carrefour stores in China exceeded 100, making it the one with the largest number of stores among foreign-funded retail supermarkets.

It introduced the "hypermarket" format into China in the form of a "joint venture" and realized the connection between agricultural supermarkets and other models. It also made Carrefour a benchmark in the industry and was once known as the "Whampoa Military Academy" in the retail industry.

　　However, in the fierce business competition, Carrefour gradually lost its strong position.

In 2009, Carrefour’s sales in the domestic market were surpassed by RT-Mart; in 2010, the number of Carrefour’s stores in China was overtaken by Wal-Mart.

From 2012 to 2017, Carrefour's sales in mainland China dropped from 5.583 billion euros to 4.619 billion euros, a drop of 17.27%.

　　In 2018, Carrefour China's book net assets were negative.

Carrefour China explained that in recent years, the offline retail industry has been impacted by the Internet. Although it actively responded, it still brought periodic operating losses.

Data map: Citizens shop at a Carrefour supermarket in Hanyang District, Wuhan.

Photo by Wang Fang

　　If you look at the entire industry, Carrefour's situation is not an exception.

In recent years, supermarket chains such as Metro China and Tesco, which mainly focus on hypermarkets, have "sold themselves" one after another.

At the same time, news of store closures has repeatedly spread in hypermarkets around the world.

　　"Affected by community group buying, the supermarket business has reached the darkest moment of life and death." BBK Chairman Wang Tian said at an industry conference in April 2021, which made people worry about the future of supermarkets.

　　According to retail expert Hu Chuncai, with the improvement of national per capita income and living standards, new changes in consumer demand, offline supermarkets also need to change, from the original "selling goods" to the current "selling life", to the Chinese people. Provide new life solutions.

　　According to Suning.com, when making business adjustments to Carrefour, it will integrate the 3C business of electrical appliances in Carrefour stores. With the advantage of the flow of people in the hypermarket, it will increase the income of the more profitable home appliance business and share the fixed costs; Structural adjustments, local e-commerce and community e-commerce operations, accelerated adaptation to market changes, and achieved quarter-on-quarter improvement in scale.

　　Now Carrefour, an established retail giant, is trying to make a difference.

Facing the storm of "restricted use of shopping cards", Carrefour consumers also hope that the supermarket can return to normal as soon as possible.

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