The Obstacles of Carrefour in the Uae

Abstract

Carrefour is recognized as one of the most active shopping concept developers throughout the region. Customer service in Carrefour UAE has experience some dissatisfaction from the long queues that are forming in the check-out points. The major problem that there are not enough employees at this point due to the high rate of absenteeism among the employees and Carrefour is likely have to continue to meet the demand for fast, frequent shopping in order to compete on service.

Introduction:

Majid Al Futtaim Group has ownership of Carrefour who is recognized as one of the most active shopping concept developers throughout the region. The Group first introduced the hypermarket model to the Middle East in 1995. A joint venture company between Majid Al Futtaim Group and the world's second largest retailer Carrefour, MAF Retail LLC, Offers shoppers the same quality, variety and value for their money, which have made the brand a household name to millions over the world in particular UAE.

There are 23 hypermarkets in the Middle East. A further four will open in the next few months, one in Kuwait, one in Qatar and two in Saudi Arabia. The Carrefour brand has expanded across the UAE and into Oman, Qatar, Saudi Arabia, Egypt and Jordan and is the most dynamic, fast-moving hypermarket chain in the region. Over the years, Carrefour has successfully positioned itself as a leader in terms of quality and low priced goods. Carrefours own retail brands are a significant medium for brand differentiation and customer loyalty, contributing substantially to the organization's growth in sales. More than 9,000 motivated employees from 37 different nationalities have contributed to the growth of the Carrefour brand throughout the last decade. With reported sales of AED 7 billion in 2006, MAF Retail, in the same year, served 55 million customers, guaranteeing the highest standards of hygiene, quality products and values. The aim is to offer customers a wide range of low-priced, quality choices in food, personal care, communication, leisure, entertainment and household goods while continually meeting the needs of local consumers. In 2006, MAF Retail opened four new stores including Jeddah and Al Khobar in the Kingdom of Saudi Arabia, a second store in Doha, Qatar and the first Carrefour hypermarket in Jordan, which opened in December 2006 in Amman.

Carrefour Strategy

The Carrefour group is currently engaged in improving their drive for expansion; first get on in 2005. In France, for example, the group has been continually reclaiming market share since 2005. These are just the first results from a profitable growth strategy designed for the long term. Carrefour ambition for 2008-2010 is to accelerate growth. Strengthening the group’s position in its key markets In order to take on France and international competition from a position of strength, the group has set itself a clear, challenging strategic objective: to figure among the three leading players in each of the markets where it has a presence. Where it is unable to rapidly achieve this objective, it is not afraid to withdraw from the market: it pulled out of Japan and Mexico in 2005, of South Korea, Slovakia and the Czech Republic in 2006, of Switzerland and Portugal in 2007. While doing so, the group has recently strengthened its position by way of tactical acquisitions in Brazil, Poland and Spain.

Its growth strategy calls for a doubling in the rate of store openings, to further strengthen the group in markets where it is already well established. This strategy of store openings will concentrate on key markets where the group aims to become a leading player, in China, Brazil, Indonesia, Turkey and Poland in particular.

The obstacles of Carrefour UAE

The Carrefour group puts there customers at the heart of their strategy frame work. To this end, Carrefour group is giving more independence to store managers to adapt their business as closely as possible that matches the needs of their place area. Alongside this, the Carrefour group has expanded customer choice, adapted its store brand ranges and increased its service offering. New store concepts have been introduced to respond to evolutions in our customers’ lifestyles. For some years now, the group has also been strengthening its loyalty programs around the world to ensure that they reflect the latest consumer and social trends.

However the customer service in Carrefour UAE has experienced some customers' dissatisfaction due to long queue that are forming in the check-out points. The problem was for two main reasons; one of the major problems that there is not enough employees at this point due