Carrefour’s Mastroly Outlines Post-Newprinces Strategy

Newprinces Integrates Production and Retail, Reimagining Italian Agri-Food Landscape

Newprinces is set to revolutionize the Italian agri-food sector by becoming the nation’s first group to seamlessly integrate both food production and large-scale retail operations. This strategic move, underpinned by its acquisition of Carrefour’s Italian stores, signals a notable shift, raising questions about potential unfair competition for other producers.

Addressing these concerns,Angelo Mastrolia,President of Newprinces,reassured the market: “There will be no dumping effect.We will guarantee our customers the same treatment and offer our products at the same prices as we do in other major retail chains (GDO).”

This integrated model, while novel in Italy, draws inspiration from international precedents. Mastrolia highlighted Switzerland, where major players like Migros and Coop already manage the entire supply chain from production to distribution. He also pointed to Luxottica’s trajectory, emphasizing how the eyewear giant achieved its full potential by expanding from production into a retail network.

Newprinces envisions a robust future for its retail arm, aiming to directly manage 80% of the acquired Carrefour sales points, which will eventually be rebranded under the GS banner. The company identifies two key growth areas arising from this integration. Firstly, home delivery represents a significant chance, leveraging Newprinces’ strong presence in major cities and established logistics infrastructure. Secondly, the Horeca (Hotellerie-Restauranti-Caffè) sector is a strategic focus, building upon existing relationships in supplying milk-based products and expanding its offerings. Furthermore, ownership of supermarkets is expected to double the turnover generated from private label brands.

Regarding the challenges Carrefour faced in Italy, Mastrolia acknowledged that past French retailers, including Auchan, struggled to navigate the Italian market. However, he stressed that this does not indicate an inherently unprofitable sector. Newprinces’ accomplished bid was attributed to its ability to offer a zero antitrust risk solution, enabling Carrefour a swift exit from the Italian market with a significant financial package for industrial relaunch.This approach avoided the protracted and costly exits experienced by others, such as Auchan.

How will the integration of Newprinces’ digital infrastructure contribute to Carrefour’s digital acceleration goals?

The Shift in Focus: From Acquisition to Integration & Growth

Following the completion of the Newprinces acquisition – a notable move in Carrefour’s expansion strategy – CEO Alexandre Bompard, guided by key executive Mathieu Mastroly, has begun detailing the roadmap for the future. The focus is now decisively shifting from simply acquiring market share to integrating Newprinces’ strengths and driving sustainable growth. This strategy impacts everything from supply chain management to digital conversion and customer loyalty programs. Key areas of emphasis include streamlining operations, leveraging synergies, and enhancing the overall customer experience.

Key Pillars of the Post-Newprinces Strategy

Mastroly’s outlined strategy rests on several core pillars, each designed to unlock value from the newprinces integration. These aren’t isolated initiatives,but rather interconnected components of a larger,cohesive plan.

Supply chain Optimization: A major focus is on consolidating and optimizing the supply chains of both Carrefour and Newprinces. This includes negotiating better terms with suppliers, reducing logistical costs, and improving inventory management. Expect to see increased investment in technology to enhance supply chain visibility and responsiveness.

Digital Acceleration: carrefour is doubling down on its digital transformation efforts. This encompasses expanding online grocery delivery services (Carrefour Drive, Q-Commerce), enhancing the mobile app experience, and leveraging data analytics to personalize offers and improve customer engagement. Newprinces’ existing digital infrastructure will be integrated to accelerate this process.

Private Label Expansion: Building on the success of Carrefour’s private label brands, the strategy includes expanding the range and quality of these products. This offers higher margins and strengthens customer loyalty. Newprinces’ expertise in specific product categories will be crucial here.

Store Network optimization: A review of the combined store network is underway, with a focus on identifying opportunities for closures, renovations, and new store openings. The goal is to create a more efficient and customer-centric store footprint. This includes exploring smaller, more convenient store formats.

Financial Discipline: Maintaining a strong financial position is paramount. The strategy emphasizes cost control, debt reduction, and efficient capital allocation. This will allow Carrefour to invest in growth initiatives and return value to shareholders.

Impact on Carrefour’s Core Markets

The post-Newprinces strategy isn’t a one-size-fits-all approach. Implementation will vary depending on the specific characteristics of each market.

France: Expect to see a continued focus on strengthening Carrefour’s position in the hypermarket segment, while also expanding its convenience store network. Digital initiatives will be key to attracting younger shoppers.

Spain: The integration of Newprinces’ Spanish operations will be a priority. This includes streamlining logistics, optimizing the store network, and leveraging synergies in purchasing and marketing.

International Markets: Carrefour will continue to focus on growth in emerging markets, leveraging its expertise in retail operations and supply chain management. The Newprinces acquisition provides a platform for expansion in new geographies.

Addressing Recent Customer Issues: Microsoft Gift Card Concerns

While the broader strategy focuses on growth, Carrefour is also addressing existing customer concerns. Recent reports,such as those highlighted on the Microsoft Community forum (https://answers.microsoft.com/fr-fr/msoffice/forum/all/carte-cadeau-microsoft/dbb4c9ef-a05b-4929-8a67-1900894c1cd0), regarding issues with Microsoft gift cards purchased alongside PCs, demonstrate the importance of maintaining customer trust. Carrefour is working with Microsoft to resolve these issues promptly and ensure a seamless experience for customers. This responsiveness is vital for maintaining brand reputation during a period of significant change.

Leveraging Data Analytics for Personalized Retail

A critical component of the digital acceleration pillar is the enhanced use of data analytics. Carrefour aims to move beyond basic customer segmentation to deliver truly personalized experiences.

Predictive Analytics: Using data to anticipate customer needs and preferences.

Real-time Personalization: Tailoring offers and recommendations based on real-time shopping behavior.

Loyalty Program Enhancement: Rewarding customers based on their individual preferences and spending habits.

Improved Inventory Management: Optimizing stock levels based on demand forecasts.

The role of Mathieu Mastroly: A Key Architect of Change

mathieu Mastroly’s role as a key executive is central to the successful execution of this strategy. His experience in retail operations, supply chain management, and digital transformation makes him ideally suited to lead the integration of Newprinces and drive sustainable growth. He is seen as a pragmatic and results-oriented leader, focused on delivering tangible value for shareholders