Worldwide Retail Industry Social Corporate Responsibility

1. Worldwide Retail IndustrySocial Corporate Responsibility OKSANA BOGUSLAVSKA ANNA NADIRADZE KSENIA KHOKHRYAKOVA NATALIE SMAZHENNA

2. Overview • Industry overview • Company's analyze • Company's Social Corporate responsibility • financial overview • Conclusion

3. Industry Life Cycle • During the 1970's and 1980's the retail grocery industry was expanding at a phenomenal rate • In the early 1990's, the retail grocery industry began leaving the growth stage and entered the maturity stage in the industry lifecycle. This was because of increased mark. saturation. • in 2002 the five largest chains (WalMart, Kroger, Costco, Albertsons, and Safeway) accounted for approximately 37.5% of total sales • Today industry continues its life. changes because of digital industry development & trends;

4. Industry Segmentation

5. Analyzed Company

6. Carrefour • No.1 retailer in Europe • No.2 retailer in the World • 108.629 Billion Euros in Sales incl. VAT • 7th Largest Private employer Worldwide • Over 495,000 employees Worldwide • Operates in 31 countries • 15,430 Stores • 17.912 million SQ.M of sales area

7. For sustainable development • Economic progress • Social Progress • Environment Progress “I believe that today companies must post healthy economic results while acting responsibly, on both a social and environmental level. In my view, this ensures sustainable growth”- Lars Olofsson.CEO

8. 5 Key challenges in 2008 • BALANCED DIET Wide choice of products; Product quality and safety; Offer products that are suited to a sustainable consumption; varied range of product for balance diet; • RESPONSIBLE CONSUMPTION mass market production; Carrefour brand products; work with suppliers to improve the working and environment conditions; • MANUFACTURING SOCIA CONDITIONS Social responsibility in supply chain; 2541social audits carried out in sensitive countries; GSCP; ICS;

9. 5 Key challenge in 2008 • RESPONSIBLE EMPLOYER Working conditions; Team management; Fair wages; Respect for diversity; Employee safety; equal opportunity; employees education and promotion opportunities • ENVIRONMENTAL FOOTPRINT Optimize the logistics chain; Reduce greenhouse gas emissions; Reduce noise pollution; Reduce the consumption of natural resources and energy

10. Global compact Examples • Human rights • Labor Standards • Respect for environment • Combating Corruption

11. Wal-Mart • World's largest public corporation by revenue • Operates in 14 countries outside the United States • Sales of $374.5 billion • 2,980 stores Worldwide • Approximately 2,100,000 employees Worldwide

12. Environmental Sustainability Goals • Be supplied 100 % by renewable energy • Create Zero Wastes • Sell products that sustain our resources and the environment

13. Economic Progress • Lowering pricing on goods • Boosting customer traffic • Creating new jobs • Community Economic Opportunity

14. Social Development • Health care • Wages and benefits • Diversity initiatives • Training and development

15. Main achievements in 2008 • Grew sales by 8,6% • Improved significantly customer service scores • Launched new marketing campaign – Save money. Live better.

16. Principles for Development • Sustainability • Corporate philanthropy • Employment opportunity “We save people money, so they can live better.”

17. El Corte Ingles • Number of staff:10,001 employees • Year established:1935 • Headquarters:Madrid, Spain • Spain Key people : Isidoro Álvarez, CEO • Revenue: €17.8 billion • Net profit: €747.6 million • Stores: Spain, Belgium, Greece, Italy, Mexico, Portugal, and the Middle East

18. Main challenges of 2008 • Group revenue increased 5.1% • Net profit was up 5.1% • change the working hours of staff • the firm established branched out into other businesses • Family members representing about 7% of the shares have recently sold their stokes

19. SCR - Economic progress • Commitments (Maximum quality,service, choice and guarantee) • Product safety • Customer service • Customer perception

20. Social Progress • Special attention to minorities; • Recruitment &Training • Promotion & recognition • Equality at work • Health & safety • Employees benefits (about 1000 employees studied higher education courses) • Diversity & integration( 6,650more then foreigners; 6.1% of the total workers)

21. Environment Progress • To reduce plastic bagsconsumption /The use of compostable biodegradable bags (from 2003, has saved 2,353 t of cardboard, the equivalent of 23,530 trees) • Construction of buildings to optimizing energy efficiency to reduce the greenhouse gas emission (10 % energy reduction) • Reduction of water waste • new own-brand ecological products (about 80 brand) • Continues improvement of distribution & supply chain

22. TESCO • It is currently the third largest global retailer based on revenue, behind Wal-Mart and France's Carrefour • 4 331 stores worldwide • 470 000 people employed • Sales in 2008 - 51,8 bn • Operating in 14 countries

23. TESCO. OPERATING COUNTRIES

24. Social Corporate Responsibility. Five core promises • Actively supporting local communities • Buying and selling products responsibly • Caring for the environment • Giving customers healthy choices • Creating good jobs and careers

25. Key challenges in 2008 • Keep in pace with changing priorities of customers • Introducing more affordable prices • Offering sharper promotions • Be as good in selling non-food goods as food goods • Increasing international sales

26. Sustainability Development Indicators

27. Financial information

28. Financial information

29. Conclusion • INDUSTRY: very attractive, as supermarkets achieve high sales in the Retail Industry • QUALITATIVE ANALYSIS: Carrefour and Walmart are best in terms of providing information for shareholder • RATIO ANALYSIS: Walmart is attractive in terms of profitability and activity

30. THANK YOU FOR YOUR ATTENTION! ANY QUESTIONS?