In 2008, Carrefour's profits fell by 44.7%. Lars Olofsson, the new CEO of Carrefour Group, doesn’t believe, consumers' expectations. Thus, in order to improve its image in terms of price and profitability, the strategy to increase 40% supply of labels (MDD) ie branded Carrefour products.
In fact, Carrefour is aligned with its main competitors who offer 50% of private label products against only less than 30% for Carrefour.
This is not without consequence; this shrinking market threatens the major brands. Olivier Desforges, president of the ILEC (liaison and survey consumption industries Institut), commented on the strategy of Carrefour: “Some (manufacturers) will disappear, as is already the case in some markets at the foreign”.
In fact, Carrefour is aligned with its main competitors who offer 50% of private label products against only less than 30% for Carrefour.
This is not without consequence; this shrinking market threatens the major brands. Olivier Desforges, president of the ILEC (liaison and survey consumption industries Institut), commented on the strategy of Carrefour: “Some (manufacturers) will disappear, as is already the case in some markets at the foreign”.
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