It includes Synopsis, Problem Definition, Situation Analysis and Recommendations or solution for the Case, Carrefour China- Building a greener store.

1. Carrefour China,
…building a greener store
Sonia Grover
PGDM1

2. Synopsis
• New concept of “green” store was introduced
• Carrefour first green store opening in Beijing, in 1995
• Company operated 73 hypermarkets in 29 Chinese cities
• Supermarkets in and around luxury hotels for rapid growth
• Carrefour’s Aim: mix western store with local preference for freshness
• Its turnover in china was US$2 billion, in 2005,making it 5th largest market

3. “Green Store”
• Store built and operated with the most advanced environmental technology
• Use of non-renewable resources was prohibited
• For getting potential benefits of energy conservation
• Maintaining sustainability, causing decrease in cost and increase in 35% sales

4. • High Electricity consumption
• Operational cost, AC & Refrigerator is 15-20% of total budget(later, 30% of
total energy consumption)
• Lack of strategy for green project
• Managing equipment suppliers escalates cost
 working with local suppliers
Importing complex equipment
Problem definition

5. • Climate problem
• Frequent Short supply of electricity
• Genetically engineered rice not approved for human consumption, in central
China
• Lack of knowledge of local supply and material availability
• Risk of the level in LEED certification, which could affect positive public
relations
…Continued

6. Situational Analysis
• Aim was to mix western store with local preference for freshness
• 45000 visitors each day of larger stores
• Sales of 20k-25k transactions
• Operational, maintenance problem came into the frame
• Reducing maintenance and operating costs by 12%
• Standardized the equipment, and make importing process not-acceptable if it
gets delayed or not standardized

7. • Greenpeace demanded to stop the sale at a Carrefour hypermarket in central
china
• “Green” saved its 30% of energy consumption
• Climate problem

8. Recommendations
• Applying “Green” concept in practices, rather than making all the processes
“green”
• Following all the Legitimate aspects
• Getting certified by LEED, so as to build trust among consumers
• Contact with Electronic savings companies to avoid electricity issue, like GE
• Use of 3Rs
• Making all the stores “green”, then focusing on New stores
• Strategizing all the processes, to avoid further complications

9. Thank you