Carrefour's Foray in Brazil


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Case Details:

Case Code : BSTR329
Case Length : 17 Pages
Period : 2000-2008
Pub Date : 2009
Teaching Note :Not Available
Organization : Carrefour SA
Industry : Retail
Countries : Brazil

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Introduction Contd...

However, it was a different story in the 1990s. Local retailers strengthened their position and started to spread rapidly, giving stiff competition to Carrefour. In 1995, Wal-Mart Stores Inc. (Wal-Mart)4, Carrefour's closest competitor in the global markets, entered Brazil. Carrefour also faced several challenges at that time due to the unstable Brazilian economy, which faced problems like high inflation, fluctuating domestic currency, etc.

One of the major challenges in Brazil that Carrefour was able to address to some extent was related to its supply chain.

Prior to 1999, when Carrefour Brazil did not have a centralized distribution system, the store managers carried out the process of procurement individually.

Since they did not have any fixed formula to determine the order quantity and to decide on product mix, the stores started facing inventory problems. Out of stock conditions became frequent while at times, there was surplus stock in the stores...

Excerpts >>


4] Wal-Mart was the largest retailer in the world, as of 2008. It was started by Sam Walton in 1962 at Roger, Arkansas, in the US. The company's revenues for the financial year 2008-2009 were US$ 404.16 billion and net income was US$ 13.59 billion.


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