How Procurement Powers Carrefour’s Retail Shift

Carrefour runs one of the largest and most diverse supply chains in retail, covering hypermarkets, supermarkets, convenience and ecommerce.

It manages substantial spend across food, non-food and services. With this scale comes pressure as procurement has to be more than a back-office function.

It becomes a key lever in controlling costs, managing supplier risk and keeping shelves stocked.

Procurement now plays a hands-on role in shaping commercial plans, setting specifications and making the business more resilient and sustainable. It supports an expanding omni-channel operation across France, with a focus on speed, cost and continuity of supply.

Procurement takes centre stage

At the core of this shift is Sébastien Digonnet, Group Purchasing Director. He operates within a procurement model that separates direct (retail, for resale) and indirect (capex, opex, services, energy) spend. This gives his category leaders room to influence what is bought and why, not just how much it costs.

This structure allows procurement to step into the early stages of commercial planning.

Sébastien's team collaborates closely with merchandising to define the role of private label products in each category. They work with the supply chain to maintain availability on critical paths and with the quality function to make sure traceability from source to shelf remains intact.

Procurement pays attention to long-lead items and seasonal peaks well before any contract is awarded. Vendor qualification isn’t a one-off task — it’s treated as a continuous process. This avoids unpleasant surprises and ensures delivery targets are hit.

Responsible purchasing and supplier stability

Carrefour expects more from its suppliers than just a good price. Its standards extend across health and safety, ethics, human rights and anti-corruption. Sustainability is not treated as a separate initiative — it's embedded directly into product specifications and supplier selection.

Carbon impact is managed as a cost across a product’s life. Procurement teams balance price with efficiency, recyclability and end-of-life outcomes.

If it supports better environmental outcomes, Carrefour is open to writing contracts that reward suppliers for measurable improvements in energy use, packaging reduction or waste avoidance. There’s no need to dictate how it’s done, as long as the result holds up.

Risk management is part of everyday decision-making. Whether a supplier is a global brand, own-brand manufacturer or a specialist producer, procurement watches for signs of stress — capacity limits, quality issues or financial strain. This way, gaps on shelf are avoided before they appear.

Payment discipline helps reinforce supplier stability. Carrefour processes approvals quickly and offers optional financing tools that help smaller suppliers maintain cash flow without compromising on control.

Growth through collaboration

To stay competitive, Carrefour joined forces with Coopérative U to create Concordis, a European buying alliance aimed at consolidating volumes when dealing with multinational suppliers. This brings more negotiating power, without interfering with each retailer’s local strategy or brand identity.

Private label continues to play a growing role in this approach. Carrefour puts it “at the heart” of its commercial model and targets 40% of food sales through private label by 2026. This move cuts dependency on branded suppliers and gives more control over quality and pricing across value tiers.

Indirect procurement is also coordinated across the group. Frameworks now cover everything from major works and energy contracts to store fit-outs and technology services. Local needs still guide execution, but the structure allows for repeatable, efficient delivery.

Digitalisation ties it all together. From sourcing and contract metadata to dashboards tracking supplier performance, Carrefour invests in digital tools that speed up decision-making. In non-food, it uses platforms like TradeBeyond’s CBX to manage specifications, testing and compliance.

AI pilots add further support, helping teams compare quotes, identify anomalies and surface risks. The result is shorter cycles, cleaner hand-offs between teams and fewer surprises when goods arrive at distribution centres.