As part of its business strategy for the 2023-26 period, French retail giant Carrefour has unveiled plans to launch a global retail media platform, a joint venture with French multinational advertising and public relations company Publicis.
Operations are expected to commence in the first half of 2023, with the retailer owning a 51% stake in the joint venture while Publicis takes the remaining 49%.
The new platform will build on Carrefour Links, a central pillar of the retailer’s digital strategy designed to allow Carrefour’s advertising partners to leverage customer data for more personalized campaigns.
Related: Retailers Make Bigger Moves Into Digital Advertising
While Carrefour Links is focused on the European market, the joint venture with Publicis is intended to span the grocer’s transatlantic retail operations.
In a press joint release announcing the project on Tuesday (Nov. 8), the partners said the new venture has “the ambition to rally multiple new retailers, to build an unparalleled network of inventories and accelerate the development of retail media in Europe and Latin America.”
They added that the ultimate goal is for any company with retail media space and untapped customer data to be able to join the platform and partner with advertisers to deliver Carrefour Links-style connected marketing.
Overall, retail media has major advantages for large businesses like Carrefour, which have a strong physical and digital presence.
For example, the company can collect data from its loyalty scheme to inform the best timing and location for in-store marketing campaigns displayed on its digital signage offering — ‘AdScreens.’ In turn, advertisements can direct customers to either in-store or online promotions creating value for both Carrefour and the brand advertising.
Learn more: EU Retailers Leverage AdTech Innovations, Data to Deliver Tailored Customer Experiences
In fact, the greater interpellation of online and offline sales and marketing channels is the driving force behind Carrefour’s growth plans for the next three years.
In Tuesday’s presentation, the company stated that the average spend per omnichannel customer has grown by 22% since last year thanks to a 5% increase in spend frequency and a 7% rise in average basket value. In comparison, the average amount spent by Carrefour’s offline-only customers remained relatively flat in the same period.
And to capitalize on higher-value omnichannel customers, the group intends to increase the percentage of shoppers that use both online and offline retail from 11% in 2021 to 30% by 2026.
Increased Emphasis on Services
In order to drive omnichannel growth, Carrefour will focus on enhancing customer loyalty and retention across its ecosystem, which includes its retail offerings as well as travel, insurance, electric vehicle charging and car rental.
As well as increasing the number of loyalty members in all markets, Carrefour is rolling out its subscription service in Spain and plans to launch it in more markets in the future. The service, which was first introduced in its home base of France and allows customers to order products to be delivered on a recurring basis.
The group also intends to launch a new in-store buy now, pay later (BNPL) product and targeted offers for seniors in 2023. Additionally, Carrefour will expand its Brazilian financial services arm — APAG.
The company revealed Monday that it expects its digital strategy for financial services to generate additional recurring operating income of €200 million ($201.5 million) in 2026 compared to 2021.
Read on: French Grocer Carrefour Pins Hopes on Digital Efforts to Boost Revenue
As well as helping to diversify Carrefour’s revenue streams, a greater focus on services is also connected to the company’s desire to grow its omnichannel customer base and enrich its data pools.
With more information about a wider range of customer behaviors spanning retail, travel, mobility and finance, Carrefour will be better positioned to optimize its own sales and distribution as well as its partners’ marketing efforts.
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