Carrefour Romania: extending the retail footprint in a sustainable way

The successful transaction with the Louis Delhaize Group resulting in the acquisition of all Cora brand operations in Romania was one major milestone in 2023 for Carrefour Romania. CEO Julien Munch sat down with Business Review to discuss the latest trends in modern retail and Carrefour Romania’s strategy on the local market.

By Anda Sebesi

What were the biggest challenges Carrefour faced in 2023?

In 2023, we faced similar challenges to what the retail industry encountered across the globe: market volatility, inflation—though there has been a certain decrease—, the energy crisis, operational spending pressures, and supply chain issues. We are fully aware of these challenges and we remain committed to protecting our customers’ purchasing power, notably through campaigns such as Bonul de Weekend, Bonul de Cartier, and Top 100 Produse HIT, as well as repeated waves of targeted price reductions.

What were the most important projects the company carried out in 2023?

A truly significant milestone in 2023 was the successful transaction with the Louis Delhaize Group, resulting in the acquisition of all Cora brand operations in Romania. We finalised the transaction with the approval from the Competition Council in October. This acquisition includes 10 hypermarkets and 9 convenience stores, marking an expansion of our store portfolio and also making Carrefour the employer of over 2,000 individuals who had previously been integral to Cora’s operations in Romania. With this transaction, Carrefour’s footprint now extends to 435 stores nationwide, solidifying our position as one of the top employers and leading retailers on the Romanian market. While preparing Cora’s integration with the newly launched campaign, Cora devine Carrefour, we kept our commitment to expanding our flagship hypermarket format, culminating with the opening of three new stores in Alba Iulia, Craiova, and Arad.

What’s the current state of modern retail and what changes should we expect to see in the coming years?

We find ourselves in a dynamic landscape which is characterised by the extensive adoption of e-commerce and mobile shopping. The business model applied by Carrefour has been omnichannel in the last years, as we anticipated these consumption and behaviour trends as well as technological advancements. Our strategic approach in the last few years at the Group level and also locally is to ensure a shift towards becoming a Digital Retail company. It is about an adaptable and consumer-relevant model, different from any other retailer’s; a digital retail company purpose that has the power to enhance the omnichannel approach to its fullest potential while ensuring value creation for our customers and the future of shopping.

How important are ESG and sustainability criteria for Carrefour and for the retail industry in general?

Because ESG is integral to our business, our primary focus is on making a direct contribution through the projects we develop. Initiatives such as the Act for Food programme, aimed at accelerating the food transition plan, exemplify our commitment. We undertake various practices to support all Romanians in eating healthier, encouraging them to choose locally cultivated ingredients by Romanian producers. And since nutritional education is still not present in the education system, last year we launched Gust pentru sănătate. Ora de obiceiuri sănătoase și mese delicioase in partnership with several educational institutions, jointly educating future adults on topics related to a healthy lifestyle. The programme currently has over 800 beneficiaries. We have been pioneers in waste collection since 2019, when we launched the Punem Preţ pe Plastic platform, under which we have developed national projects such as Plata cu PET or campaigns for collecting used oil and batteries, and we continue to do good with the introduction of the Deposit-Return System.

What is the outlook for modern retail in 2024?

I expect a dynamic 2024 that holds promising opportunities for businesses to adapt and grow, as well as a lot of contextual challenges. I trust that further integration of digital technology, continued growth in e-commerce, and a focus on sustainability will be key for our business. Mobile commerce is expected to grow, with innovations in the online shopping experience. Businesses will likely prioritise data-driven personalisation, while eco-friendly practices will become increasingly popular.

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