In June 2018, Carrefour S.A., one of the leading multinational retailer companies, signed strategic partnership with Google LLC to accelerate its digital transformation by deploying G Suite productivity and collaborative tools. Under the agreement, Google and Carrefour will open an innovation center in Paris and work on Artificial Intelligence (AI) to create enhanced consumer experience.
As stated during collaboration, Carrefour will now sell its products on Google’s new online shopping site, one of the products of its search engine. Additionally, customers will be able to get seamless shopping experience through Google-operated systems such as Google Assistant coupled with home speakers, by 2019. This deal seems to create win-win situation for both companies.
The partnership strengthens Carrefour’s position in French food retail market against its competitors such as E.Lecterc S.A. and Monoprix S.A. among others. Notably, retailers are striving to improve online platform and enhance delivery services to ward off in-roads by Amazon.
Analyst View:
This collaboration will help both companies to leverage the growing demand for food retail in France. This move allows Google to enter into ever-growing retail market with innovative services and shopping apps. Considering the emphasis on improving consumer experience, Carrefour is expected to gain a competitive edge over other retail & e-commerce companies in the country.
Through this partnership Google has built competitive advantage over Amazon.com, Inc. Earlier, Amazon was in talks to acquire Leclerc along with Carrefour, meanwhile Google pulled on over by winning the partnership with Carrefour, in France. The European market for groceries is growing at a significant pace and expected to hold immense potential for e-commerce sector. In 2017, Europe contributed to more the 32% of global grocery retail sales with approximately 5.6% and 7.5% share of France and the U.K. respectively. Google’s strategic partnership with French retailers expected to help it in reaping benefits from growing European retail market.
