By Riad Beladi
Having followed retail and supermarkets for 30 years, I never imagined we would reach this point in digital transformation. The pace of change is remarkable, raising questions about whether retailers are moving too fast. While embracing technology is crucial for staying competitive, there is a risk that some supermarket chains are struggling to keep up. The need for significant investment in new technologies could prove too much for some, potentially leading to fewer chains dominating the market in Europe.
Carrefour is leading the way in retail by embracing this digital transformation. The company is using SAP S/4HANA, a new enterprise resource planning system, to enhance its operations and improve customer experience. This move marks a shift toward using data more effectively, allowing Carrefour to better forecast demand and optimise its supply chain.
The Role of AI and Data Analytics
Artificial intelligence (AI) and data analytics are at the heart of Carrefour’s transformation. By 2022, the company had successfully reduced food waste by 40% compared to 2016. This achievement stems from using AI to manage inventory more effectively. By accurately predicting what customers want, Carrefour can keep stock levels aligned with demand, which not only cuts down on waste but also supports its sustainability goals.
Data analytics allows Carrefour to gather insights from various sources, helping the company understand shopping trends and customer preferences. This knowledge enables Carrefour to ensure that popular items are always available, enhancing customer satisfaction.
SAP S/4HANA plays a crucial role in this journey by streamlining processes and improving data visibility. This system helps Carrefour make quicker, smarter decisions and turn data insights into practical strategies.
Innovative Solutions: The BuyBye App
One of Carrefour’s key innovations is the BuyBye app. This application allows customers to buy items that are nearing their expiry dates at discounted prices. This not only helps shoppers save money but also further reduces food waste. The app reflects Carrefour’s understanding of its customers and their desire for value while promoting sustainable shopping.
By providing tools that encourage responsible consumption, Carrefour sets a positive example in the retail sector.
Dynamic Pricing Strategies
Carrefour has also introduced dynamic pricing algorithms that adjust prices based on real-time data. This means prices can change in response to shifts in demand and stock levels. This strategy helps Carrefour stay competitive while maximising revenue. Factors like seasonal trends and customer preferences are considered, allowing for flexible pricing that benefits both the company and its customers.
Dynamic pricing enhances the shopping experience, giving customers better deals on less popular items and encouraging them to make informed choices.
Expanding Retail Media Partnerships
As Carrefour continues its digital journey, expanding retail media partnerships has become an essential part of its strategy. By collaborating with brands and advertisers, Carrefour creates an ecosystem that enhances customer engagement through targeted ads. These partnerships allow Carrefour to use its customer data to create personalised marketing campaigns that attract shoppers both online and in-store.
This collaboration benefits everyone involved: brands reach engaged customers, while Carrefour opens up new revenue streams beyond traditional retail.
Carrefour’s journey into the digital age showcases how technology can reshape retail. By adopting systems like SAP S/4HANA and embracing AI, the company has become a leader in forecasting demand and optimising supply chains. Its innovative projects, such as the BuyBye app and dynamic pricing, highlight the importance of data in enhancing customer experience.
As Carrefour continues to grow, its dedication to sustainability and responsible shopping will resonate with an increasing number of eco-conscious consumers. However, the challenges facing other supermarket chains are significant. The pressure to invest heavily in technology could lead to a consolidation in the market, leaving fewer players dominating Europe. By integrating modern technology with sustainable practices, Carrefour is not just changing the retail landscape; it is also setting a new standard for others to follow. Through these efforts, Carrefour demonstrates how retail can adapt and thrive in a digital world.
