The challenges of Carrefour

The board of Carrefour pressed the button. The Director General, José Luis Duran, has to be thanked. The dismissal seemed written since the introduction of a semi-annual sales disappointing in July, starting point for a spectacular diving Scholar title and is now effective. For the number two global distribution, this decision for the less radical shows a continuity in governance. It foreshadows especially profound strategic failure. Continuity, first. In their time, the two predecessors of Jose Luis Duran, Daniel Bernard and Michel Bon, had also borne the brunt of disappointing performance on substantive disagreements with the shareholders of reference. Whether the founding families yesterday Deforrey for Michel Bon and Halley for Daniel Bernard, or tandem Arnault-Colony today, the tradition of a strong and involved ownership remains up in the number two distribution. But this time, it is much more than a passing witness between distribution specialists. The new strongmen of the group have opted for a real break. While the Spaniard Jose Luis Duran was from the Seraglio and financial literacy, his successor, the Swede Lars Olofsson, is not a "trader" but an "industrial". From the headquarters of Nestle, it is primarily a marketing man and a specialist in high consumption. The message is clear, more than competence, the board opted for a renewed strategic vision. At Carrefour, the hour is to shock. A rebuilding of the model. The bet will be won if the new boss manages to solve two major questions hanging over the strategy, namely the question of prices and formats. It must be said that in these two areas the figure is now pale in the light of some of its rivals. His image is so degraded prices in France despite its size, while a Wal-Mart takes full advantage of its leading position in the U.S. through a very aggressive pricing policy. Similarly, the concept of the hypermarket general who made the success of education must be revisited. The next crucial months ahead.