Cenários com Sonia Racy | Stéphane Maquaire

Obviously, this is an immense loss. We are very sad. He was a wonderful person and a great friend. But Carrefour Brazil is well organized with a long-term investment plan from the family. The group continues its journey, and we are committed to following the path we have laid out for Carrefour Brazil and Carrefour globally.

The Brazilian consumer is very demanding and always looking for value. In France, consumers are more mature in terms of behavior. But Brazilian consumers are more agile. For example, in inflation, Brazilian consumers have more experience and flexibility. In 2023, we had a strange scenario: general inflation was higher than food inflation, which was actually deflation in Brazil. In Europe and the US, it was the opposite: high food inflation. Now in 2024, Brazil is returning to similar food inflation as general inflation, while Europe is entering the scenario we had last year. Each market has its particularities. At Carrefour Brazil, we have different formats: Atacadão, Sam's Club, and Carrefour hypermarkets. Each behaves differently during deflation or inflation. For example, when food deflation occurred, the wholesale customers waited for even lower prices, while final consumers took advantage of lower prices. So our strategies must adapt to these dynamics.

We acquired Grupo Big in 2022. Grupo Big was the second largest retailer in Brazil, making Carrefour Brazil the largest and one of the largest private employers in the country. It was a huge integration. We had 12 different banners when we merged. We converted all 129 stores from Big's formats to our formats: Atacadão, Carrefour, and Sam's Club. We also focused on cultural integration. We analyzed the cultures of the different groups – wholesale, Carrefour banners, Big – and identified strengths from each. We created a new culture based on respect, inclusion, and cooperation. We united all banners under a single culture called 'Bornada'. We have over 130,000 employees. It was a gigantic task, but we are making progress, continuing in 2024.

Yes, the margin is low. But we are selling more than 100 billion reais, so even 1% is a good profit to reinvest. We have to negotiate well with suppliers and control costs. In 2023, when costs rose by 5% due to inflation but our sales were in deflation, it was more complicated. But we manage as an entrepreneurial company with strong leadership. We work every day to serve our customers.

Private label is a strength for us. In 2023, 21% of our food sales were under Carrefour brands. In some categories, it's reaching European levels of 35%. We develop products that are 20-30% cheaper than national brands, but with high quality. We also focus on sustainability: we have organic products, gluten-free, lactose-free, and healthy options. We are responding to consumer demand for better products. For example, our Carrefour brand 5kg rice is a best-seller. We are expanding our branded products every day.

We are using AI step by step. First, we are using it to improve our ordering system: we have a chatbot that communicates with suppliers to ensure better orders. Also, we use AI to predict demand more accurately, so we know what we will sell in the coming weeks. We are also leveraging AI for internal processes and as a digital tool to enhance the customer experience. It's a new digital arm for us, and we are just beginning to tap into its potential.