Carrefour SA (CA) Earnings Call Transcript & Summary

Good morning, and thank you for joining us today. I'm very happy to welcome you to our Digital Day. We have a lot of viewers connected today, which is fitting for a digital event. But seeing many of you in person after all these months is a real pleasure. I'd like to give a special welcome to our members of the Board who are here with us, to our shareholders, to investors, to analysts that cover Carrefour and to the press. And speaking for all our teams that contributed to this event, I want to say how grateful we are for your interest in our company. Today, we will walk you through our numbers and share with you in detail our digital ambitions. You are not going to hear a bunch of those words. You are going to hear something I'm passionate about. Business not as usual. Digital is rewriting the way we do business in retail. For Carrefour, this is a tremendous opportunity in 3 different ways. First, digital already adds value to our core business. It strengthens our omnichannel model, optimizes our operations and lowers our costs. Second, digital is reshaping the retail markets and accelerating new trends on which we are well positioned. So these trends will fuel even more growth for us in the coming years. Third, on top of this, digital opens up new, sustainable and profitable sources of revenue for us by leveraging our customer database and services. All of these points in the same direction, digital powers a new business model for Carrefour, built on strong competitive advantages. This is why we are here today. This is why today I'm announcing our ambition to become a world-leading digital retail company. Digital will be the centerpiece of our next strategic plan, which will run until 2026 and create strong shareholder value. But before looking to the future, let's start with the past few years. Our digital transformation has already come a long way in a short time. Let's watch what happened. [Presentation]

We are not the company we were just a few years ago. We have tripled our e-commerce GMV in 3 years, outperformed the markets where we operate by 15 points of growth per year on average, gained new customers over 3 million during COVID and strongly improved our e-commerce bottom line. Now we are ready for the race. We have all the capabilities. First, in terms of reach, we are the largest European retailer and the strong leader in Brazil with 80 million customers worldwide that shop at Carrefour year. We have also hit some serious numbers in terms of logistics. We scale up to over 3,700 e-commerce ready points of sales. And we have built an industrial network with 45 dedicated e-commerce warehouses and our stores. Second, in terms of tech. We have now state of the heart, digital platforms and services in each of our geographies, accumulating 800 million visits every year. And we have a unified tech architecture across all our geographies. These are key assets, and our cloud strategy, the most aggressive in the industry, will make them stronger. 30% of our tech assets are already in the cloud. And I'm announcing today that we will be a full cloud company by 2026. Third, in terms of data and analytics, with 8 billion transactions, we have the largest data lake in Europe, one of the largest in the world, and it's growing fast. But it's not just the quantity that matters. It's the quality. I'm talking about billions of granular and first-party data, meaning data that come directly from customers who buy their products, such as transaction and that respects the privacy of our customers. Many players are paying a lot to access that kind of data, whereas we own it, and that is clearly out of reach for local competitors, notably in France. So we are a data-rich company. Not so long ago, this was something theoretical. And of course, we are still at an early stage, but it's becoming very real. And it's something big for the future. I'll come back to it. So that's us right now. What these figures do not show is how the difficult the journey was. We've made some mistakes. But we got here. We now have a proven track record. I'd like to stress some of you are surprised by how much digital has already been infused in our bloodstream. But this is just a starting point. Let's take a closer look at what comes next. We are building our digital future on one key fact, the value of omnichannel for 3 years. We have measured the economics of turning store-only customers to omnichannel customers. These are our figures, and they are clear and consistent across countries. An off-line customer turning to digital increases his overall spend at Carrefour by 22%. Online revenue is, therefore, incremental. There is no cannibalization with off-line. Then what happens over time? Again, we worked out the equation precisely, omnichannel customers keep increasing their frequency and they hit a 97% retention rate. After 2 years, an omnichannel customer generates 27% more turnover than the same store-only off-line customer. So the initial value creation of moving to digital increases with time. This is transformational to our business model. It's not just about digital revenue. It's about creating a more loyal, a more frequent, a more friendly customer relationship overall. To put it simply, with digital, the pie is getting bigger. And since our omnichannel customers are our best customers, we are getting an even bigger share of the pie. More than sheer volume, e-commerce brings powerful additional value to our business model. That's the icing thing on the -- well, on the pie. There's a bigger picture. As customer expectations have changed, multiple new trends are reshaping the online market. First, is speed. Customers want shorter delivery times. Same day, Express and quick delivery will become the new normal. Second is what I would call digital convenience. Customers want the easiest way, optimizing time plus place transportation. This leads us to a more flexible shopping habits using multiple apps platforms, marketplace and shopping for smaller but more frequent baskets. Third is customization and sense of community. Customers want their shopping experience to be deeply personal, tailored to their individual preferences. They also want to share that experience with others. The success of social commerce and live shopping are tangible proof of this trend. Considering these new trends, we cannot look at future digital growth through today's lenses. We believe that the demand for speed convenience and customization will be a strong push for the grocery home delivery market. A market powered at the same time by new logistics and take capacities. That's the future. And we still have a big execution challenge ahead of us. But my point is, we are in the lead. On grocery on delivery, we are the #1 retailer in Continental Europe, ahead of Amazon. And we are also the first mover in Europe on many emerging trends on quick commerce, on social commerce and on the personal shopper model. So by ourselves, we are well equipped to capture these new digital opportunities and establish sustainable market leadership. And I have some big news to break. We are not going to do it alone. Let's hear from a very special guest from San Francisco.

Our partnership with Carrefour dates back to 2019, and I don't need to tell you that 2020 was a complete game changer. With Carrefour, we worked together to support France during the lockdowns and then go bold on grocery and delivery together. Uber's goal is to build the largest on-demand grocery platform in the world, and it's super, super exciting for us to be leading the way in France, one of our top markets with a partner and leader by Carrefour. Grocery is core to delivery and our strategy here and an increasingly important bet for Uber and all over the world. And for us, with the spend in grocery, partnership is just critical. It's no surprise to anyone in this room that consumers, not just in Europe, not just in France, but all over the world have come to expect delivery of almost anything in their doorstep within half an hour to a few hours now increasingly to within 15 minutes even. In Europe, we've seen a triple digit increase in demand for groceries on Uber, and we expect that demand to grow over a long, long period of time to come. The good news is that with Carrefour, we've been able to meet these expectations and exceed these expectations in some cases, delivering from 1,000 stores in France. Most recently, we're also innovating together on rapid grocery deliver, a global trend with major, major strength in Europe as well for 30-minute delivery on thousands of items to 15-minute delivery on those instant needs. Carrefour Sprint was launched just 2 weeks ago, and I believe that we are uniquely situated for success here together. I look forward to seeing what the new year will bring, and I'm delighted to be headed into 2022 and beyond together, Uber and Carrefour partners.

As you may know, it's my constant desire to open up Carrefour to best-in-class partnerships. We started with Google a few years ago. And since then, we have learned a lot. We are now building a new generation of business-oriented partnerships. Today, we are joined by Uber. We already know that the strong value in joining forces. In France, with Uber, we have grown a business of EUR 100 million in just 1 year. With this exclusive and global alliance together with Uber, we are leaping into the future of retail. But it's not only the food market that is being reshaped, but the global online market as we know it. A new playing field mean new opportunities for Carrefour. We'll have a new card to play in the game of nonfood e-commerce, which has not been our priority over the past years. We'll do it through technical works, focusing on key segments and trends where we know we can be very competitive. We also see a strong growth opportunity for online B2B. B2B and cash and carry, are a competitive advantage for Carrefour Brazil and France. And we want to sharpen this advantage now that this market is quickly moving into the digital space. I've been talking about strong top line growth for a while. All in all, when we add up growth from our omnichannel customers with growth from new trends, we set a target of EUR 10 billion in e-commerce GMV by 2026. To reach it, we will accelerate investments in digital. CapEx in digital is expected to be EUR 3 billion for 2026 at a pace 50% higher per year than during the past 4 years. We'll provide more details on these ambitions in a few minutes. Let's now look at an even bigger picture. What happens when you combine this massive growth and our omnichannel model. The answer is a lot more value creation. Of course, applying significant e-commerce volume and higher productivity to fixed costs will contribute very positively to our profitability. That's EUR 200 million of additional operating profit by 2026 for our e-commerce business. But there's more to it. And starting right now, will gain a lot from our huge customer database. We are leveraging our data to improve our retail operations and our marketing to lower acquisition and marketing costs and to build new and profitable revenue streams. The first revenue stream is Carrefour Links our retail media platforms that we launched last June. We designed it to meet the booming demand in database marketing. And let me tell you my first belief. Retail media is the future of marketing. We are looking at the $30 billion market by 2024. The major brands will tell you it's already becoming core to their business. That's why we worked closely with them to build Carrefour Links and best match our solutions to their needs. Do we succeed? Let's hear directly from one of our trusted partners.

Hello, everyone. This is David Taylor, Executive Chairman of P&G. I want to thank Alexandre for asking to speak on the topic of digital. Digitization is a key enabler for P&G to continue to drive value creation for consumers, partners, employees and share owners. We are using digital tools to transform almost every element of how P&G operates from the consumer experience to our internal operations to how we interact with external partners and stakeholders. For example, we work with Carrefour and make use of their digital programs to better serve our joint consumers. Through programs like Carrefour Links, we're able to create better in-store and online experiences for shoppers as well as reach people with more timely and useful personalized information that can aid in their shopping decisions. And of course, we're transparent about what consumer data we collect, why we collect it and how we use that personal data. Digitization is strengthening our relationship with retailers, including Carrefour. And we see digitization is critical to continue driving category growth and creating value for everyone involved.

A new market is one in which we are very advanced compared to competitors. And in fact, we only compare with the U.S. top retailers. Carrefour Links is still at an early stage, but it's already a game-changing solution. That makes us a strong European leader in retail media. The next question is how much do we expect to gain from it? That's another EUR 200 million in additional operating profit by 2026 if things evolve along the straight line. But as I said, retail media could be a disruption in global marketing with exponential growth. Let's now turn to our second new revenue stream, our financial services. Of course, creating value through our financial services is not new to Carrefour. We already have deep expertise with solid digital foundations. But the future of our financial services is to be even more digitized and further embedded in retail. In combining retail and banking data, we can do what others can't do. By crossing our data, we are gaining incredible customer knowledge, and we are using it to improve all of our banking offers. We are designing more personalized, diversified and customer-centric solutions while reducing the cost of risk. That's a new source of profit we are tapping into. That's yet another EUR 200 million of additional operating profit by 2026. Taking a step back, we know for a fact that marrying offline and online is a winner. It gets you a bigger part of a bigger pie. But marrying offline, online and data is a game changer. You are not just looking at 1 pie anymore. You are looking at a full meal with interest on side dishes, new and profitable revenue streams. For those who have been counting, that's EUR 200 million plus EUR 200 million plus EUR 200 million equals an additional EUR 600 million in digital operating profit by 2026. And I would say, at least EUR 600 million. I'll wrap it up from here. What I've been telling you is that the new Carrefour is powered by digital and data. Here is our emerging business model designed to better serve our clients. First part, is digitizing. We invest to expand our online omnichannel customer base, generating huge online traffic and billions of first-party data, data that we use to offer better service and more personalized experience to our clients. Second part, growing. We took a head start on new trends, and we continue to expand our offer, provide new services and connect them. We increase touch points with customers which in turn increases sales and loyalty. That's the digital version of everything under one roof, driving repeat business and additional sales. Third party, creating value. Turning to my favorite part. When data powers the bottom line. We use data to improve our operations, lower our cost, our inventories and scale up new revenue streams, retail media and financial services. This results in a more diversified and more profitable model and to close the loop, innovating. Better digital assets and innovation throughout our company are what we need to keep the flywheel spinning. Alongside our internal capacities, we'll continue to open up to partnerships and venture capital. I'll come back to it. But let me pause here for a second to share my personal experience. When I first arrived at Carrefour, I was often told how complicated we were with too many businesses, too many formats. But from the very start, that was not at all my perception. Of course, I knew it would be challenging. But my idea was to take each of the parts render them incredibly customer oriented and connect them. The result is that the sum is greater than the parts. That's the magic of digital, unifying what was once unrelated. Today more than ever, I believe the future of retail belongs to those who offer a seamless ecosystem of services, both online and offline. When we compare ourselves to our competitors, the difference is clear. We have the scale both digital and international, we have the omnichannel model and we have all the assets for high frequency and retention. All of this puts us in a very strong competitive position. So yes, we have all the ingredients for the perfect mill. And yes, it creates a lot of value. And now I would like to welcome Elodie Perthuisot on stage. She is our wonderful, really wonderful Chief E-commerce, Digital Transformation and Data Officer, and she'll provide you with a deeper look into each of our digital ambitions. Elodie, the floor is yours.

Thank you, Alexandre. Good morning, everyone. I'm very excited to be here with you today. And now I would like to show you how we, the whole digital team at Carrefour, are going to deliver. I'm here to give you proof, granular figures, detailed action plans. I'm here to show you where we stand and how we are going to reach our ambitions. Let's start with our battle plan to reach our target of EUR 10 billion in e-commerce by 2026. To get there, first of all, we will seize huge opportunities in the new e-grocery market. By 2026, this market will look quite different from what we know today. Right now, most of the e-grocery market is here on the left-hand side, click & collect in France, next day delivery in France and in the rest of Europe, addressing mostly large baskets for families. This part of the market will keep growing, and we will keep gaining market shares. But on top of it, the fastest-growing segment on this market will be convenience e-grocery. And this is where Carrefour is leading the way. First, same-day delivery of large baskets will be a key growth driver because customers want shorter promises. They want to get delivered within 3 hours, even for large baskets. They want to order until late at night and get delivered early the next morning. Then, Express and quick commerce will address the market for baskets below EUR 50. Remember that in the off-line world, half of the value is made with baskets below EUR 50, whereas today, in e-grocery, they represent only 7% of the value. So you see what we see. Small baskets are a huge untapped opportunity. And we at Carrefour are acting decisively to capture all this growth. First, order capacities. Our current order preparation capacities after still behind our needs. Today, in key cities, we struggle to meet demand. That's a good problem to have, isn't it? And we're going to solve it. We will create 70 new fulfillment centers across our geographies for click & collect and for home delivery and most of them will be built in '22 and '23. Second, we will go beyond next day delivery, offering massively same-day delivery to our customers for large baskets because our capacities remain close to our customers. So we expect that 30% of home delivery will be same day by 2023. And most of our competitors don't offer it. That's why we're moving quickly. We've already launched in the south of France and will accelerate next year. And we're also expanding our personal shopper model following the Instacart model in the U.S. where on-demand grocery is prepared by a shopper, and it's already operating in 4 geographies with our affiliate Bringo. Finally, we are making aggressive moves to launch Express and quick commerce. We're a first mover. We've built in 1 year a leadership position. And Alexandre gave you the figure, EUR 1 million in 1 year. That result is not random. In fact, we have key game-changing competitive advantages on this market. First, our network of stores is key on this segment. We managed to transform 1,000 convenience stores into e-commerce-enabled stores. 1,000 in 1 year, this is by far the most aggressive e-commerce transformation in our industry. And we'll go further. We'll transform convenience stores into quick commerce enabled stores. What is a quick commerce enabled store? For a customer, it's a normal store. And for a picker, it's as efficient as a dark store as efficient as a fulfillment center. Meaning these tools will organize their layout and teams to be able to prepare orders in a matter of minutes, any time of day. And for high-density areas, we complete our network with dedicated urban fulfillment centers capable of preparing hundreds of orders per day. And our casual investment allows us to access quickly and easily to this urban fulfillment centers. So the combination of quick commerce enabled stores and urban fulfillment centers means that Carrefour and Cajoo have the largest reach of quick commerce services in the market. Then the last major asset in this market lies in our assortment. Private label products are a key differentiator in this market. They provide our customers with convenience, quality and price that are perfectly suited to the expectations. So on this market, our strategy is twofold. We will fully integrate Express delivery options in our own Carrefour platforms. For example, in France, it will be fully integrated in our customer journeys at the beginning of next year. And we believe that partnerships and platforms can help us grow faster. So I'd like to show you how we will keep accelerating with Cajoo and Uber. In France, we've just launched our Carrefour Sprint quick commerce service in Paris a few days ago. Together with Uber, we will operate this exclusive service. We will grow the business. We will open new cities. We will densify our network including without quick commerce-enabled stores. So we are combining the best possible brands and customer solutions. And when we work with Uber we keep the relationship with our customers. We share the data. And we even ask the ambition to go further, we have the ambition to connect other loyalty schemes. And beyond France, our partnership with Uber covers Spain and Brazil. We've just launched Express in Brazil, we'll be launching in Spain by the end of December. So we expect to take a leadership position in these 2 countries as well. In a word, we are moving fast to seize the growth opportunities in the e-grocery market while reinforcing our current positions. We have the largest set of solutions, partners and logistics to win on every segment of this market. And now I'd like to show you how these initiatives will translate on the ground into our key markets, Spain and France. In Spain and France, we are launching real battle plans. We have the ambition to reach more than 20% online market share. This is above our current market share for brick-and-mortar stores, notably in Spain. Now I'd like to talk a minute about another key driver of growth. B2B is a strong digital opportunity in key geographies, particularly in Brazil and in France. So let me take you to Brazil for a minute. There Atacadao is launching an ambitious digitalization plan. We will leverage our unique position on the B2B market. We're #1 in Brazil. We will leverage our network distribution centers covering 5,000 cities. We have the largest e-commerce B2B network in Brazil. We will launch a dedicated app to streamline the recruitment of new small and medium business customers. We will accelerate our marketplace because there, we already have a dedicated in-house B2B platform already offering hundreds of vendors. And we will integrate financial services dedicated to SMBs, such as digital accounts. So in short, Atacadao will become the leading digital B2B player in Brazil, and we will replicate this model in other geographies, in particular in France, where we're launching a dedicated B2B business unit. Now I'd like to shift our ambitions in nonfood e-commerce. Clearly, it was not our focus over the past years. First, we had to catch up in e-grocery and with it. But Carrefour has changed, and the nonfood e-commerce market is changing fast as well. Alexandre has said, we have a new card to play, and it's a trump card. We, at Carrefour, will make smart moves into the nonfood e-commerce market. We will focus on key verticals where we can be competitive while remaining profitable. Let me explain nonfood white label products. Based on our existing buy teams in Asia, we have the most competitive products in the world as competitive as Walmart or Amazon. They deliver both high margin with aggressive pricing. So we'll go for them online. And we will build on our websites and apps with high level of traffic. It's a great opportunity for marketplaces. And in particular, for the nonfood marketplace that we've launched in France in September, it's scaling fast. We will have more than 1 million SKUs next year, and we'll go beyond that. We will build on key market trends where we can take strong positions. Drop shipment. Drop shipment is when brands available in Carrefour websites, ship products directly to the customers. It's new in the market. A few years ago, nonfood brands did not have these B2C capabilities. For them, it's growth. And for us, it's time to market, it's launching first-party e-commerce without even investing in expensive supply. It's game changing. And we've just signed drop treatment agreements with Samsung, HP, Xiaomi business stores, we're discussing plenty of others. A second trend, the fast-rising secondhand market. We will leverage our multichannel network, our customer base through a massive trade-in operations. The trading operation even customers can estimate the value of their products online, bring them to the supermarket to Carrefour and get special rewards. We are working with that market to grow this business together. And third trend. Nonfood e-commerce will be transformed by social commerce and live shopping. In fact, social commerce will become a pillar of e-commerce at Carrefour, both for food and for nonfood. We have a unique position, key Carrefour categories, food, beauty are among the top 3 categories of social commerce in the world. And we were a first mover here as well. We launched social commerce, live shopping in 2020. We're the first retailer in France. We now have 1 million viewers in our live shopping stations this year, and we are scaling rapidly. For this Black Friday in France, a few days from now, our Black Friday Live Shopping show will be broadcast on every social media platform. And it will feature the very top influencers. You can see them behind me. And if you don't know all of them, our customers do, in particular, the younger ones. This is the new e-commerce at Carrefour. But social commerce will not be the only innovation on our digital journeys. Let me walk you through the future of our customer journeys and sure you are fast removing. As Alexandre explained, the transformation of our store-only customers into omnichannel customer is key in our business model. So we will focus our teams and road map on accelerating this transformation. And for this, we are creating a new app, an app that will become our news to front. This app will combine seamless off-line and online services, both in retail and in finance. And we have a clear road map with features already up and running, digital catalogs, digital receipts, credit facilities, sales shakeouts. These services, combined into one single app, will draw massively our customers to digital. And to build this super app, we are leveraging our digital factory. What is a digital factory at Carrefour? Thousands of developers, UX, product managers, product owners, located in our key countries working together with agile and scale methods and building the future of our customer journeys. Frankly, building a digital factory at their scale has been a real learning curve for us. It's a huge transformation, but we now have a proven track record. In France, we've doubled our conversion rate in 2 years. In Brazil, our teams moved 60% of our credit prediction to digital. And if you observe Carrefour today, you see how fast we are releasing new features and new services, but better than words. Let's have a look at what our teams are preparing for us today. [Presentation]

And we're not alone in this project, we will be supported by Facebook. Our teams will take part in their mobile app development programs in the U.S. So with all this, we will grow our yearly online visits to digital assets from 800 million today to more than 2.5 billion by 2026. And 30% of our customers will be omnichannel. I will go even further. I'd like to show you now the power of personalization that our teams can deliver today. Lots of people speak about personalization, but we have something unique. Customers in our industry are highly predictable. Meaning that if you buy -- if you shop regularly at Carrefour, which I hope, then I can predict 58% of the next basket that you will purchase. This is where Carrefour's data teams, powered by Google, can deliver the very best online experience, an experience that none of our traditional competitors will be able to match. When we speak about personalization about data at Carrefour, it's not theory, it's not a vision. It's through our figures. 58% predictability. I love this figure. It represents huge potential for better retention, for higher frequency, larger baskets, and it's also a strategic information for our consumer good companies' partners. So now you know how predictable we are, but you also know that we are turning it into a very good news for our business. So I think you've seen now that we're very advanced in our road map to deliver our EUR 10 billion in e-commerce target and to massively turn our customers to omnichannel. Now Alexandre shared with you that marrying online, off-line and data is a game changer. So let's have a closer look at the first game changer, Carrefour Links. With Carrefour Links, we aim to capture a significant share of a nascent but fast-growing media segment name Retail Media. The Retail Media market, excluding Amazon and China, is estimated EUR 14 billion today. And according to experts, it will grow to EUR 30 billion by 2024. So now let me explain why we're still excited about the potential of Retail Media at Carrefour. In fact, it's very simple, brands have massively moved their advertising to digital and the pandemic even accelerated this trend. So now the need to better target, to better understand and to measure the impact of the advertising of the digital marketing on sales, including an off-line sales. And for that, many data, they need first-party data, data that comes from the customer who buy their products, such as Carrefour transactions. Pure players like YouTube cannot link the advertisement to the actual purchase of the customer. Whereas we, in retail, we know who buys what and where. So we can link, that's us here in the middle, we can link the advertisement with the actual purchase. So working with Carrefour, we have brands optimize their campaigns end-to-end from the ad to the transaction, off-line or online. To be more specific, I'd like to welcome Adrien. Adrien is a loyal customer of Carrefour, meaning he's my boss. The other one, of course. Most of our customers, Adrien gave its consent to receive personalized offers. So when he comes to our website, we're proposing a personalized offer for chocolate ice cream that we think he's interested in based on his shopping history, for example. Then Adrien goes to Facebook. Then he receives a Facebook ad for chocolate ice cream as well because we have been working with the ice cream brand on a customer segmentation based on our data, and Adrien is in the ice cream segment, obviously. And the brand has connected its media tools with our platform. So when Adrien eventually buys the ice cream in the store, we can attribute the sale to the ad. So now we can calculate the uplift in sales that is directly associated with the advertisement he was exposed to. That's the future of marketing. And it's not science fiction. We are implementing these kind of journeys right now with our CPG partners. Look at what Unilever's CEO says about Carrefour Links, and what he says about the plus 18% uplift in Magnum sales, that journeys like the one of Adrien's are providing. But it's not an ice cream story. Works with all our categories. Look at what Kellogg's CEO is saying. Actually, we work -- already, we launched Carrefour Links in June. We work already with 20 key CPGs at global level who have global contracts with Carrefour Links right now. So you see that with Retail Media, we at Carrefour are transforming our business model. We are becoming a highly effective channel for marketing. And for this very reason, specialists predict that large parts of media investment will move to Retail Media. So it's only logical to see it as a EUR 200 million additional profit stream for Carrefour by 2026. But several retailers speak about Retail Media. I'd like to convince you that we are most advanced and that we have a unique position to capture this market. In fact, you have 2 key differentiators, size and quality of data. Size with the first European retailer, 80 million customers in our database. Quality, unified first-party data. We have unified first-party data across our geographies, across our formats. And having a diversity of store formats of online channels is very positive. We have unified first-party data for all the channels that customers use. And then we can close the loop. That's my example with Adrien. We can measure the impact, both off-line and online. And we have an open ecosystem. All partners can connect directly their tools to our media platform. And finally, our solutions are supported by best-in-class technology partners that provide next level analytics and marketing technology, because we should not underestimate the level of sophistication that will be needed to win in this market. That's how we make our choices. Criteo, the European leader in ad targeting. LiveRamp, the world's leading data connectivity platform. Google and Facebook, with whom we are more and more integrating our solutions. So if you translate what I'm saying in 2 colors, this is the result. We're very advanced in this field. And in fact, we only compare to the top U.S. retailers. Speaking about the U.S. I'd like to welcome on stage, Warren, LiveRamp's President, who's come especially from San Francisco to be here with us today. LiveRamp is a technology with whom we are collaborating efficiently and securely with the brands. Warren?

Well, thank you, Elodie. It's my pleasure to be with you today. As you know, we're incredibly excited about our partnership and what it can mean for Carrefour.

Yes. So Warren, you're a key partner of Carrefour Links. You also work with top U.S. retailers. What insights can you bring us from the U.S.?

Well, we are very fortunate to be the industry leader, and we do have many retail relationships in the U.S. and globally. But let me talk about what really sets Carrefour apart. The first thing for me that comes to mind is the word transparency in that you offer granular SKU level data access. By way of comparison, looking at other companies, Amazon, obviously, a huge advertising business. But Amazon only offers its suppliers aggregated data. Similarly, Target is pretty much the same. So the next thing is a little bit subtle but also very important in terms of the value you're creating. And think about silos that can be combined or be eliminated. If you think about a typical CPG, somewhere in the marketing department probably lives advertising. Maybe with the CTO or the CIO is data science. Well, because you're offering both the combination of Retail Media and also granular access to data, these silos can come down, and that's a huge value unlock. A couple of examples. Walmart today, again, global scale, but Walmart really doesn't offer collaboration. Kroger is a little bit different and is really the flip side of Walmart in that what Kroger does is Kroger is very, very sophisticated on the analytics side, but just getting going in Retail Media. And then finally, a core differentiator, which you've spoken about, is really your scale and the fact that you're global.

Yes. And indeed, breaking the silos has been a huge transformation at Carrefour. Now moving to tech, one of the reasons we chose LiveRamp is you provide tech for data collaboration and in particular, for privacy with data collaboration, can you explain this?

Well, first of all, we're the category creator when it comes to data collaboration. Everything that you just spoke of relative to privacy and data security are absolutely core to our platform. They are built-in from the beginning. We embrace privacy. Now with that in mind, as a foundation, let me highlight a few other things, which are really unique to LiveRamp and actually are key enablers and required for effective collaboration. So with LiveRamp, we have the following: Number one, we're neutral. We're cloud agnostic. We don't buy or sell media; two, on the privacy front, a couple of additional thoughts, we're actually defining next-generation, privacy-enhancing technology and help federation work; the third thing is identity management, again, a hallmark of LiveRamp and critical for any CPG; fourth, we're future-proof. Our solution doesn't require cookies; and then finally, we're built for scale and growth.

Yes. scale. Speaking of scale, can you share last insight perhaps about the potential of this market?

Well, the potential, we think, is significant, if not huge. And in thinking about that, maybe I could leave you with a few thoughts. First of all, there is just much more to come. Every day that we work with your team and others around the world, new use cases are emerging. And it's kind of interesting to think about if you and I, Elodie, had access to the strategic plans of the top 100 CPGs, I pretty much can guarantee that if we were to read through them, we would find 2 things discussed very thoroughly. First of all, how they plan to effectively use Retail Media. And then the second, as they're thinking about getting closer to the consumer, how important it is that they have access to granular SKU-level data. The bottom line for me is Carrefour's approach is right on. Number two, it's highly strategic, and it's highly strategic for your CPGs, and it's exactly what they're asking for. And then finally -- or not finally, but I guess the second point that I would ask everybody to think about is Metcalfe's Law. Metcalfe's law is all about the value of the network and how it grows exponentially as you add additional nodes. If you think about where we are today and then you forecast out 12, 24 to 36 months, we're not talking about a network at Carrefour with 30 nodes. We'll be talking about a network with hundreds, if not thousands, of nodes. That will create immense value for your company and for your customers. And then lastly, I think what is really, really important for me and just a huge deal, we're only getting started. And maybe a little bit of a teaser for everybody, addressable TV and measurement are up next.

Thank you very much, Warren. So as you see, we don't even yet know the full potential of this Retail Media market. But what we know is that Carrefour will be among the few retailers with a relevant scale, tech and value proposition to capture this market. So now another winner of marrying online, off-line and data, I'd like to welcome on stage, Benjamin, our Chief Financial Services Officer, to share with you the digital future of our financial services. Benjamin?

Thank you, Elodie. Good morning, everyone. I'm absolutely delighted to be with you this morning. Let me just set the scene on financial services. Financial services at Carrefour are basically about 2 things. First is consumer credits, especially in the form of credit cards with revolving credit facilities. And secondly, insurance, typically extended warranty, guarantee of means of payments or creditor insurance. Now these services are offered in our 9 Carrefour integrated countries. But in 5 of them, we operate as a majority shareholder of a formal bank set up with a banking partner. And in those 5 countries, financial services already contribute significant value to the group, be it in terms of operating income of portfolio value with more than 10 million credit cards or in terms of synergies with retail. And what is at stake now is bringing that contribution to the next level. Now the first element I would like to share with you is that we already rely on a solid digital base. Now digital already has a significant impact on our top line. Card acquisition relies for more than 30% on digital channels. 2/3 of our customers use home banking features, and close to 40% of our credit production is made through digital. A second element is that Brazil is a center of excellence for a whole group in terms of financial services. There, we have stronger digital performance. Elodie mentioned earlier on that credit production is made around 60% through digital in Brazil. Brazil also has an innovation-driven culture and organization and a true openness to the start-up ecosystem, as was shown by the investments in the digital wallet company, Ewally, in 2019. I would also like to mention that our success story with Market Pay showcases our ability to grow internally from scratch in just a few years, a valuable fintech. And finally, outside of Carrefour, we have a unique opportunity to leverage on the fintech ecosystem, which is one of the most dynamic segments of the economy. Now moving forward, our vision is that digital and data will be the key drivers to accelerate our strategy. Now what are our strategic priorities for financial services. First is to fully embed financial services and retail. We'll do that by mutualizing digital assets and by combining data from retail and banking. Second, we want to further diversify our services. We'll do that by complementing our product range and thus addressing new customer segments. And lastly, we want to optimize our current operations along 2 lines, improving user experience first, reducing costs as well. So let me focus on the first pillar, what we call deep into retail. Embedded in retail means being where the traffic is at the right time in the customer journey with personalized solutions. And to illustrate this concretely, I'd like to touch upon some of the recent achievements of Brazil with 3 examples of synergies. First, in just a few weeks from now, a customer will be able to request the credit card directly at e-commerce checkout and it make his or her purchase with it in one go. Secondly, loyalty is at the heart of a connection with banking. And with the innovation in terms of digital accounts in Brazil, not only is a bank providing improved loyalty benefits to its customers, but soon will also be able to redeem loyalty points in cash back on the digital account. Thirdly, let me mention the WhatsApp assistant Carina that was developed jointly by retail and banking teams, it gathers in a single chatbot features from both sides. Now our vision is not only to be inspired by Brazil, but also to go 1 step further. And that means putting everything under 1 roof. And this is where the SuperApp that was earlier mentioned comes into play. Now we estimate that being part of a Carrefour SuperApp's across all geographies will allow us to reach a potential of 4x more users than currently with our banking mobile apps. And as early as next year, we will integrate all the must-have financial services features in the SuperApp's, starting with card acquisition, credit subscription, installments, account monitoring and off-the-shelf insurance products sold in the e-commerce baskets. Another key aspect of a full integration into retail that we want to achieve is about data. Now combining data from retail and banking will allow us to unlock value for both sides. While complying fully with GDPR regulation by growing customer consent, we will do 3 things: First, we will improve the relevance of our scoring models by broadening the set of data that we use, including open banking; secondly, we will systematize the use both of propensity scores and risk scores at every stage of a customer's life cycle; and thirdly, we will upgrade all our scoring models with machine learning, something that we have started doing. Overall, with retail on the one hand and banking on the other, we are convinced we have a unique chance to differentiate ourselves from the competition. Now a word on product diversification. Buy Now Pay Later or BNPL is a big topic for us. It allows consumers to pay for typically nonfood goods in installments or deferred payments, and it happens to be one of the fastest-growing areas of fintech. We are on our way to witness a 13x market increase on BNPL between 2019 and 2023. At Carrefour, we already offer BNPL solutions, but mainly for our cardholders and mainly at the point of sale. In the meantime, some specialized players have developed mobile apps that offer a differentiating customer experience quicker and simpler. So soon, we'll be offering full in-app BNPL solutions for all our customers. And not only our cardholders, we'll also offer a much broader range of product options. We'll offer pre- and post-purchase BNPL and not only time of purchase credits. And finally, we'll offer near real-time capabilities. So that's BNPL. But in addition to BNPL, we have further diversification opportunities and more revenue generation that is reachable. And I would like to highlight 3 areas. First of all, B2B. Elodie mentioned this briefly. APAG, in Brazil, is our sub-acquiring initiative launched in 2020. Small and medium businesses that are Atacadao customers receive a digital account and a card transaction device. We, Carrefour, collect the payments received by these businesses in exchange for fees. We're now in the rollout phase to offer this in 100% of Atacadao stores and their associated digital channels. Secondly, insurance. We already sell 3.5 million insurance contracts a year, but we know we can do much more. We will leverage on our experience in France where we've got the most -- the greatest digital capacities and also the broadest range to deploy in every geography of the group by 2023, a 100% digital brokerage platform. And lastly, let me mention micro-credits. Micro-credit is a loan product mostly below EUR 1,000. It is designed to take care of short-term, small-scale budget limitations. It can be given out much faster than other loans. And this will complement our product range and help us target also new categories of customers. So as a matter of conclusion, as has been mentioned, we expect that digital and data will generate an additional incremental operating income of EUR 200 million in 2026. How will we achieve this? From a top line perspective, it will be supported by, first, a growth in the number of digital customers, thanks to better integration with retail and a broader range of products. Secondly, a growth in the net banking income per customer, thanks to multi-equipment. And from a bottom line perspective this time, the use of data will help to optimize the cost of risk, while the digitization of the operations will improve the cost-to-income ratio. And on this note, I'm happy to leave the floor again to Elodie. Thank you for your attention.

Thank you, Benjamin. So we now have presented 2 huge revenue streams in addition to a EUR 10 billion e-commerce target. But there's more I'd like to share with you, I would like to show you now how we're going to drastically improve our costs and retail operations, both in digital and through digital. Let's start with e-commerce. You saw quickly a figure in Alexandre's presentation, 11-point. 11-point improvement in operating profit in e-commerce that we've achieved over the last 2 years. A very simple figure and a huge lever of energy, effort and learning. And to achieve this result, we are, and I am, obsessed about improving our e-commerce operating model. Let me show you. First, e-commerce profit is about execution. It's about granular management of each Euro per item. What is Euro per item management? It means that in every store, in every fulfillment center, I know precisely the cost of preparing every item of an order, cost of picking, cost of waste, cost of transport, cost of lot of small delivery. Our teams monitor this every day as a key metric. And that it boosts continuous improvement such as better adapting the workforce, are key projects. For example, we have developed an advanced picking tool using machine learning to optimize the picking routes in stores and in the fulfillment centers. Then the second key driver of profitability in e-grocery is the ability to make targeted decisions when we expand our logistics network. We, at Carrefour, can tailor the network to the local demand. Let me show you. For low-density areas, we go for pick-in-store, which doesn't mean we're not efficient. We have developed technologies that make pick-in-store much more efficient, optimize picking routes, electronic labels that signal items to be picked. With these technologies, even you and I can pick 100 items per hour. And for medium density areas, we implement micro-fulfillment centers. We do even better. We put this micro fulfillment centers on the premises of the stores. So we're combining the benefits of stores and our fulfillment centers of dock stores. On the one hand, lower CapEx, reusing store footprint, close to customers. And on the other hand, the productivity associated with the fulfillment center. And for high-density areas, we build fully dedicated fulfillment centers that deliver both high productivity, and high quality. And we can even operate robotized fulfillment centers. We have robotized 5 centers so far, meaning that we have the know-how to implement it everywhere. However, we implement this model only when and where local demand is large enough to offset the fixed costs. Now I'd like to take you on a tour. We're not going to Brazil this time, not to San Francisco, but it could be. I'm taking you to a robotized warehouse in [indiscernible] a few miles from here, where with Exotec, we have developed state-of-the-art order preparation technology, reaching the highest standards of productivity. Let's go. [Presentation]

So as you can see, our in supplier expertise is a key asset to winning the e-grocery race, while remaining profitable. Speaking of profit, here is my profit equation. I will improve every line, commercial margin, new merchant services, increased range of higher-margin products. The variable costs, variable preparation costs, we're tackling these costs. You've seen the Euro per item management. And the more we have these new fulfillment centers, the better our variable preparation costs. Last mile delivery equation. If you apply to work at Carrefour in our transport team today, this is the kind of math that you will be playing with. We love AI at Carrefour because it allows us to compute for each customer, the set of delivery prices and slots that will optimize our pricing. And you know that this is the way to reduce a lot of small delivery costs. As we speak, we're testing this model in a number of delivery zones in France. And we like math, but we like even more the cost reduction of 15% that we will deliver in a couple of years. And finally, tackling our fixed costs. Of course, expanding the network in France and Spain, in particular, was taught by increasing the fixed cost, but a unique and flexible network that I've shared with you is a key difference with players who rely only on large fulfillment centers. So our actions on every line of the P&L will translate into an e-commerce model that will deliver profitable growth, higher volumes, lower variable costs, offsetting the fixed cost. This is a curve of a more profitable e-commerce model. And moving forward, we will keep implementing this recipe to constantly improve our operating profit. So I am confident that this will generate EUR 200 million of incremental operating profit in e-commerce by 2026. Now beyond e-commerce, data and tech are transforming our stores. So now I would like to invite on stage our Chief Technology and Data Officer to demonstrate how technology is improving towards efficiency. Miguel?

Thank you, Elodie. And hello, everyone. Let me start saying that I'm really passionate about putting technology and data at the service of our customers. That's why it's a real privilege for me today to be speaking about how are we thinking when it comes to digitizing 13,000 stores around the world. The main idea is to avoid transforming the store into a laboratory full of gadgets and to focus on 3 priorities. First, checkout that will become faster and smarter. Second, the efficiency of our store associates from shelving to picking that will be multiplied using mobile applications. And third, our next-generation stores. So let me deep dive in the first priority, checkout, with our project to revolutionize 67,000 traditional cash desks around the world using a new in-house and open source solution we call Smart PoS for smart point of sale. I believe a Smart PoS will be an absolute game changer. First, with a Smart PoS, customer interactions will be much more personalized and fluid. We'll be, for instance, able to call customers by their name at the cash desk. Second, cashier will access an ultra-simplified interface with very important information like the pictures of all scanned products or digital receipt. Finally, a Smart PoS will unlock new business opportunities, in particular, the ability to capture data and content that we'll be later able to monetize using our Carrefour Links platform. We have a first version of a Smart PoS already up and running in Spain, and we'll be implementing it in France next year. So let's move on to our second priority because I believe that beyond the point of sale, digital will transform the professional lives of 100% of our store employees. We want them to be in the sales floor, close to our customers. That's why we'll be equipping them with a powerful mobile application called U-Care. This is how it works. U-Care will be the one-stop shop for operations, managers, HR, drive, banking, you name it, and everyone will be able to chat with everyone, accelerating communication in the field. Second, U-Care will automate a store processes. One example I like a lot is pick-to-light, which is the ability combining mobile devices with electronic shelf labels that blink to prepare e-commerce order in a store much faster. And this is, by the way, already up and running in 60 stores in France. Finally, our U-Care application will be data power, meaning that, for instance, we'll be able to foresee out of stocks before they happen. So third priority, our next-generation stores. We call them Flash because we like to provide a fast and smooth customer experience. But here, one size does not fit all. That's why we developed 2 models. We have a first model that is very easy to scale model. We call Flash Scan&go, and it's already been deployed in Brazil. In this autonomous version of the convenience store, imagine I am the customer and using my Carrefour app and a QR code. I enter the store, I grab the articles I want, I scan them myself. And with 1 click, I pay because one of my credit cards, my pass card probably, is already linked to my Carrefour application. Simple, isn't it? Well, the point is not only that it's simple, but it's also a very lean, CapEx-light infrastructure. Hence, very easy to deploy. And because of its simplicity, it's the perfect choice for areas like condominiums, hospitals or university campuses. The plan foresees implementing 20 of these by the end of the year in Brazil. So this was Flash, Scan&go. Now we have a second model, more tech-driven, we call Flash 10-10. Contrary to the previous one, Flash 10-10 is fully powered with AI and computer vision. And I believe it will be totally revolutionary versus what I see in the market. Our goal here is clear, 10 seconds to shop, 10 seconds to pay. So let me conclude saying on this last one, Flash 10-10. If you want to see it in action, [indiscernible] in Paris in a few days. Thank you very much.

Gracias, Miguel. So Technology and data are transforming our stores, but we want to go even further. We want to use digital and data to reshape the way we do business at Carrefour. Look at our data road map. We want to transform the core of our retail operations, accurate demand forecasting, automated assortment building, improve logistics flows, optimize pricing and promotions. On these subjects, we're moving fast. We started with Google in 2019. And since then, we've made a huge progress. We have built strong analytics capabilities. We now have a full data road map combining teams, expert teams of data and retail. Let me show you now 2 key examples on this road map. You know how much assortment is key in our business. So our teams are currently working on an automated assortment builder that will allow us to determine 80% of assortment in a store without human intervention, and we are confident to launch it in '23 and to have an MVP next year because, in fact, our data and analytics team are very advanced in assortment. In May this year, they released -- we released a brand-new application in Carrefour to optimize store assortment. We call it Netflix for assortment. It's already playing in 2,000 stores. This application uses algorithm to compare each store with stores with similar characteristics such as similar customer habits, even if the 2 stores are far away. So if you're a store manager today at Carrefour, it's very simple. You log on in the morning and we recommend a list of product personalized to your store that you should have on your shelves. Just like Netflix, but instead of recommending a movie, we're recommending yogurts and chocolate. Now I'd like to talk to you about ambition to digitize promotions and catalogs. Since 2019, we are leveraging WhatsApp, Facebook, YouTube for digital catalogs. Today, in France, we have more than 20 million visits every month on our digital catalogs. But the most important thing we've learned is how to digitize catalogs without negative impact on our store business. And that's why we can move further. So in Brazil, Poland, Romania, we are now 4 digital catalogs since 2020. And in France, Spain, Italy, we are running successful large-scale tests. So by the end of next year, at the group level, 2,000 stores will have fully removed their printed catalogs. So the next step is promotions. So we're moving quickly to better target and personalize promotions. In fact, we're using the same kind of predictive algorithm that I shared with you for e-commerce. And this time, we tailor efficiently the promotions to the customers. And the first results are impressive. You can more than double the efficiency of promotions when it's better targeted and personalized. So knowing the size of promotions at Carrefour, you can imagine the potential in the midterm. That's why targeted and personalized promotions are coming up next in our SuperApp map. The data transformation is not only a matter of algorithm, it's a team's transformation. And for you to feel it, let's imagine a minute that you're a marketing manager at Carrefour today. You're in charge of the chocolate category. This is your Dutch board, 5%. The proportion of your customers who buy half the chocolate we sell. So by focusing on this 5%, you will deliver half your target. 45,000, the number of customers who already bought a new chocolate brand and you know that you have the highest correlation factor to buy more than EUR 100 of chocolates for Christmas. This is your high-value Christmas segment. 1 minute and 10 seconds is the time it took me to get these numbers, the customer profiles, the customer segments, the correlation factor, the Christmas forecast. This is Carrefour today. These are Carrefour teams powered by data. We use data to make better business decisions, better for customers and better forecasts. And to accelerate this transformation, we will focus our training on digital and data, and we will grow from 500 data experts today to more than 3,000 by 2026. So I think now, you understand that we are very advanced and moving quickly to become a digital retail company, a company that uses digital and tech to be much more productive and to transform the way we do business. Thank you for your attention. Chocolate was on my slide, but coffee's here, and we have a 10-minute coffee break. [Break]

Good morning, everyone, and welcome back for the second part of Carrefour Digital Day. I was thrilled earlier to listen to how our digital strategy will offer new services to our customers and new opportunities for our teams. Thrilled as well to see how it will shape our operating processes, our competitiveness and the financial profile of Carrefour. My conviction is that Carrefour is morphing into a new model that will translate into a much improved profitable and cash-generating powerhouse. You have seen and heard a pretty granular presentation of our strategy and ambitions. Let's wrap up together its financial aspects. Over the past 4 years, we spent more than EUR 2 billion to digitize our group. We created solid and agile tech foundations, a promising data lake and an efficient online distribution platform. We collaborated with digital giants and start-ups. In parallel, we have tripled our food e-commerce gross merchandise value, constantly beating our markets. This growth came along with strong cost and CapEx discipline. We were able to improve e-commerce operating margin by 11 points. As a result, today, additional online revenues translate positively in operating income. All this puts Carrefour in an unparalleled position to become a leader of digital retail. So looking ahead, we are going to triple e-commerce GMV again, but from a much higher base. In 2021, e-commerce GMV is expected to be around EUR 3.3 billion, and we target EUR 10 billion by 2026. In order to get there, we will activate many levers. First, food e-commerce. We will be taking advantage of increasing logistics capacities for Click & Collect and accelerate on home delivery, including Express and quick. Second, nonfood e-commerce with a tactical approach, leveraging on our traffic and product offering. And third, B2B food e-commerce, notably at Atacadão in Brazil. So all in, e-commerce will represent more than 10% of our revenues by 2026. This also means that the growth profile of Carrefour is going to change. Total sales will grow much faster going forward, thanks to this revenue stream. One important piece of news from our digital strategy is that it will translate into a significant increase in earnings. As you saw, we expect that digital will contribute an additional EUR 600 million to operating income by 2026. It will be generated equally by e-commerce, data and retail media through Carrefour Links and by financial services. On top of these opportunities, we're convinced that our data-centric digital-first approach will deeply impact our traditional retail operations with more benefits attached. What I mean here is that we see EUR 600 million as a minimum. In addition, we think that we'll get to our EUR 600 million objective at a rather linear pace. This is a consequence of our operations transforming year after year. This top line and income increase will translate into a step change in operating margin for Carrefour. Let me detail this. We expect digital GMV to increase by EUR 6 billion to EUR 7 billion and digital to contribute an additional EUR 600 million to operating income by 2026. You understand easily that our digital strategy will be accretive to our operating margin. So in a nutshell, we anticipate a material and linear improvement in operating income and in operating margin. We will invest heavily to support our strategy, EUR 3 billion of CapEx over 5 years. We will keep supporting our transformation while closely monitoring the impact of every euro invested. In e-commerce, we will invest mainly for fulfillment centers network expansion. In IT, we will complete our move to cloud, roll out our digital factory and invest in tech for operations. We'll also continue to invest in our digital workplace. In data, we will be investing in our data factory at a global level to scale our new set of solutions. To this end, we will multiply by 4 our investments in data projects. In financial services, we will develop new products and make them accessible digitally to enhance selling and cross-selling. We invested around EUR 400 million per annum in digital between 2018 and 2021. The new EUR 3 billion over 5 years means EUR 600 million per year. This represents a 50% increase. This high increase is a sign of our determination and confidence in the opportunity that digital represents for Carrefour. As a consequence, our global recurring CapEx envelope for the coming years should be at the high end of the EUR 1.5 billion to EUR 1.7 billion range we communicated to the markets last February. Our anticipation is that incremental operating income will outpace incremental CapEx as soon as 2023, translating into higher net free cash flow. Considering the expected financial and strategic returns, these investments fit perfectly into our capital allocation policy. As you can see, we have a clear strategic operating and financial digital road map. Our conviction is that we are at the beginning of a new era in retail industry, an era in which only the digital leaders will prevail. Winning in digital will be key to winning globally in retail, and this is our ambition. This means that we'll be moving fast, be a front runner to secure leadership in all our core markets with a lot of appetite for innovation and new trends. Everything we described today changes our business model, our economic profile and our value creation model. I thank you for your attention. Alexandre, back to you.

Thank you, Matthieu. Today, we have shared with you our new digital road map and business model. We all convey the same message. We are building a brand-new digital retail at Carrefour. In this new Carrefour, digital is a massive opportunity for our business. And today, we look to the future with excitement and with confidence. I'd like to add a few words on how we will deliver. We'll bear 3 principles in mind. First principle, we'll favor a digital-first culture at Carrefour. Of course, we want to recruit and retain the best talents in data, in tech and digital to stay ahead of the curve. But to succeed, we need more. We need every single associate, not just a [ logistics ] team, to understand and use the power of digital on an everyday basis. That's why we are launching a digital retail academy supported by Google. Our ambition is to upskill all of our staff with digital trainings by 2024. This means we will train nearly 100,000 employees per year. We also want to transform day-to-day work at Carrefour, and we found a very powerful and engaging way to do it. I'm pleased to announce, we will be rolling out Workplace by Facebook across all of Carrefour. This will help us accomplish a lot of things, connect our headquarters to front line workers. This [ web banks will ] see and build communities at all levels, bringing new ideas to the table. Second principle, we want to operate a green and responsible digital transformation as part of our purpose, the food transition form. This is not an additional constraint for our operation. It is in our key interests. Companies today can't have a bright future if they are not seriously embracing social and environmental issues. More than that, we believe that our digital ambition can make the difference when it comes to climate. Carbon neutrality is vital for the planet. We set a company-wide commitment to reach it by 2040. And for e-commerce operations, we want to go even faster, 10 years faster to be specific. That's another example of how ambitious we are. To reach our goal, we commit to a zero carbon click. It means that the process is triggered by a customer click, from data processing, operations and all the way to delivery will be carbon-free. We also want to promote better nutrition. By 2026, we want to increase our share of healthy and sustainable products on e-commerce by 20%. We'll promote healthier alternatives for our customers, and we are developing an organic product substitution algorithm. We will also provide full transparency for every customer with both nutritional and environmental scoring for all our products. Turning to our third principle. We will create an open ecosystem to help us innovate. We are constantly on the lookout for the new opportunity to seize, and we are obsessed by our speed of execution, our ability to anticipate market trends and to be a front runner. This is why we are developing an open innovation ecosystem. We will renew our partnership with Google, in particular, to achieve our goal of becoming a full cloud company and to develop our digital retail academy. And we have a new strategic partnership with Facebook because we believe that social will be a key driver in digital retail for our super apps, our ambitions of leadership in social commerce and social marketing, and of course, our social place of work. Beyond strategic partnerships, an ecosystem of start-ups is also key. We have already partnered with start-up, of course. For a large company, collaborating with a start-up is very challenging. We know this too well. And the reverse it's also true. But we are far more experienced now, and we are engaging in new ways of collaborating with them. We are announcing the launch of a venture fund dedicated to retail-related innovations. It will allow us to be first in line to access innovation in digital retail at their best, on their very start, and to consolidate our attractiveness among innovation actors. We are living in exciting times. And we are ready to make the most out of it in order to create value for our shareholders and all our stakeholders. Of course, we are not going to get everything right on the first try. But I promise you one thing, we will deliver. We are not going to miss any opportunities. Carrefour will be aggressive, pragmatic and innovative. 60 years ago, our founder, Marcel Forni opened his first store. He called it, very important, [Foreign Language] which means it was the place to find something new and exciting every day under the one roof. That's what his customers were looking for. And he knew it, and he seized that opportunity before everyone else. And once again, that's what Carrefour is doing today. We are reconnecting with the spirit of innovation that founded our group. Together, we are opening a new era at Carrefour, the era of digital retail. And it is our greatest time of innovation since the invention of the hypermarket. Thank you for your attention. Elodie, Matthieu and I will now take your questions about what we've shared today.

So ladies and gentlemen, we're going to take just a few more seconds to have everybody on stage. We're going to start with questions from the room. And then time permitting, we will switch to questions from people following us online. I would just ask you, please, when you ask question, please stand up and introduce yourself. This is for the people following online. And for the sake of clarity, we will take one question at a time. Thank you very much.

Xavier Le Mené, Bank of America. One question because we are limited to one. Just in terms of culture, we've seen Carrefour buying a lot of small acquisition. You've got Dejbox, Greenweez, all these things. First, you did not really talk about that, but I'm wondering whether the culture of Carrefour is not potentially putting a lot of pressure on these small businesses, potentially killing them in a way and not giving them the flexibility to continue to live their life. And the question then on the culture is this. Do you think Carrefour has got the culture to really do the digital transformation? Do you think that you will not be stuck with the retail profile and moving to more digital will be more complex?

I think there are 2 questions in your question. So I will start by the second because I think it's absolutely key. The objective I have, I would even say the obsession I have is not to have 2 companies. I don't want to have, in 2026, 3,000 data analysts working competent, talented and the rest of the company outside. Because if it is that, I think we wouldn't have transformed the group. We want this digital transformation to fuel every operation and to be taken by every associate. That's really the way we built this comprehensive plan. That's why I announced the creation of this digital retail academy. That's why we will train 100,000 employees each year, not, I would say, out of the work train, really related to what they do every day. We want the cashier, we want all the employees to be trained to have their operation improved, with the obsession of the improvement of the customer satisfaction. So it would be very precise because we want that every associate in the company has new tools, has new competencies, has a clear help in the way it operates. And it's really the way how we will build this transformation. It's not data and digital there and the rest of the company elsewhere. It's not at all the way we'll build, and we begin to see that every day. And it will accelerate all the time. And the example developed by Elodie, about how do we do promotions? Promotions 5 years ago, there was no algorithm. It was human only. When you put data, when you put analytics, you change that. And it would be the same thing in the store, it will be the same thing in the logistics center. So it's really a comprehensive plan on raising the whole company. The second question -- the first is about start-up, you're right. It's so challenging to collaborate between corporate and start-up. We all know that. And we have made some mistakes, and I have made some mistakes. Sometimes, you think that when you acquire a company, you would accelerate the development of the company and you put too many bureaucracy on it. You have too many constraints. You have too many budget constraints. And at the end of the end, it's not the same pace of development. So now we are very clear about that. You mentioned some of them. We are very pleased with Greenweez. We are very pleased with DejBox, we are very pleased with Quitoque. I think we managed to accelerate them. But we know the mistakes we wouldn't do again. We are just here for helping them. I don't want them to solve problem I have. I want them to develop. And if we are useful for something, building the assortment for casual, we are there. If I'm here for managing the logistics center of casual, no, they do it. So that's the way we think about that. And because we want to have a more comprehensive analysis of that, we will continue to take direct stake, majority or in minority such as for casual. But we have also decided to launch this venture capital fund because we want to be accompanied by a professional, we want to fill the trends better than we do to have access to more business intelligence, to have a professional management of that. And so we will have the 2 options. Either the venture capital for minority stake to be present in many, many situations related to our core objectives. And the opportunity to take either majority of minority stakes in verticals, in start-up that we think we can accompany. But now we have learned exactly what we can do, what we mustn't do.

Rob Joyce, Goldman Sachs. -- sorry, a financial one. Do we expect operating profit to be EUR 600 million higher in 2026? And how much of that EUR 600 million comes from Brazil?

Well, today, it's about digital. So you're right. We expect an incremental contribution from the digital strategy to represent an additional EUR 600 million to operating profit by 2026. And you're right about Brazil. I mean, a lot will happen in Brazil. We've talked about B2B e-commerce. We've talked about financial services and payments there. So clearly, Brazil will represent a significant portion of that.

Fabienne Caron, Kepler. Just a practical question. How do you plan to update us on the progress that you are doing every year on the plan? So will you give us an update every year? Does it mean that financial services and Carrefour Links will be separate business units where we can see the progress?

No. Thank you, Fabienne, for this. It's very important. Today, we are taking a number of commitments, including very precise and financial commitments. We've even shared with you what will be the shape of the progress so that you can understand that it's not a back-end loaded plan, and it's pretty much a continuation and an acceleration on existing and already a live plan. So yes, we will share with the investor community whatever the progress we will make, how we are moving toward our targets. We will update whether our targets can be beaten. You understood that the EUR 600 million of operating profit, we see it as a minimum. So yes, we will share with you the progress we're making.

[ I'm Angelo ] from [ Gange ]. One question on quick commerce on my side. Do you think that Carrefour is a state of the art on quick commerce by being a wholesaler and a partner of Uber Eats and like Cajoo. And are you concerned of seeing Uber Eats let's say launching its own [ dock ] stores in the future and also think Cajoo becoming too large to remain a partner of [ McAfee], at least on the sell side, on the commercial side.

I will let Elodie continue. But the idea, and I think the slide was quite remarkable. I was really to demonstrate in one slide the competitive advantage on the quick commerce, when you add the capabilities we have on quick commerce due to the 1,000 stores that are equipped for quick commerce, the micro fulfillment centers of Cajoo and last-mile delivery by Uber. And the idea we have about quick commerce is how we can gain this battle with the best combination of savoir faire. On the conviction we have is the fact that the assortment is built by Carrefour, we have these logistic capabilities that Elodie has worked on to transform our proximity stores into a quick commerce store. We add the micro fulfillment center of Cajoo. And of course, we all know that the traffic from Uber and their capabilities to manage the last mile is incredible for us. It was quite even a surprise. When you look -- when we look at the figure about 1 year and we see EUR 100 million, sometimes we launch new business on e-commerce and after 1 year, it's not that at all. EUR 100 million, and it was not a strategic partnership. So when we realized that, we built this comprehensive alliance. We keep, of course, as you know, the data, we manage the assortment, and we have the powerful offset of this last-mile delivery. Elodie, if you want to add something?

Yes. Just to emphasize, we are really convinced that the alliance of Uber with Carrefour per Cajoo is really game changing. That's how we made the choice. We, of course, reviewed a number of options in the market. We saw lots of players, and we really drew this as a winning alliance. And you mentioned wholesale. We're not a wholesaler in the alliance. We're in charge of the assortment, the supply of the commercial policy. We're co-branding with Uber, we're co-marketing. So it's far more than a wholesale.

Maria Laura, Morgan Stanley. Just a very quick question. How does all of this mean in terms of pricing strategy across your digital platform?

Pricing strategy. First of all, we think we have a customer strategy. We want to offer the customer the right set of comprehensive solutions on the market. So it's pricing, but it's services. And you know that it's not only pricing that is regarded by customers today. It's the pricing, services, convenience that we look at. So we have pricing strategies that are attached to each channel. So for example, home delivery is a separate pricing strategy. We have pricing strategy to reoptimize the profits and the customer satisfaction for each channel.

Cedric Lecasble, Stifel. I have a question on the cooperation between the big tech names, the large tech names, the Googles, the Ubers. And how do you think it will -- what would be the shape of the cooperation? Will you have some exclusiveness? So you will be embarked with Uber, for instance? You will be fighting against some retailers with Deliveroo or with another provider? You see the world, big corporations being exclusive, a little like Ocado had exclusiveness in one country with one retailer? So how do you see competition in these strategic cooperations with the tech companies develop?

That's a good question, and that's not a simple answer because it depends on the subject. Let's take the example. The type of partnership we have decided to build with Uber, of course, it's an exclusive, it's a global alliance. It means that there are other companies you mentioned, we don't partner with them. On other subject, of course, it's a more ecosystem of innovation, and we can develop something with someone and have collaborations with other tech companies. But it really depends on the subject. The way we think about that is really to be capable. First, to have access to the French ecosystem innovation, when you are in French and same thing for the -- in the different countries. The ecosystem of start-up, all this company to build this partnership through the next venture capital or for direct investment. And we'll continue to do that, and we want to professionalize that. And in the meantime, there's the global tech cooperation. That's the job of the team of Elodie, of Miguel, to imagine on a very precise subject, what is the best company to accompany us. When we think about social when we think about how we create a grammar, an internal grammar among our employees to work. Of course, it was Facebook. We knew that it was easier, and it's a question of your colleague, for our colleague to work into a social media. We think it's Facebook because we know that. When we think about Google, we think about how can we accelerate the migration to cloud, a full cloud company, how we can use them to train our employees. Uber it's for the last-mile delivery. So we really try to analyze subject by subject what is the best tech company we can work in, how we can build a global alliance exclusive on how they can accompany us. Do they have the willingness to [ Dara ] from Uber, I've spoken a lot with them. He has a level of motivation of that, which is quite incredible. And we knew it was the best partner because we want to succeed that. And so we spend much time with Elodie to discuss with them, to feel them, to analyze who are the best. And after we build the contract on its -- the beginning of the story.

[indiscernible] I have 3 questions, if I may. First of them, what do you think of partnership between Casino and Gorillas. Second of them, how do you see Amazon role in e-commerce future by 2026? And third of them, you said, we won't do that alone. What could be the role of another retailer?

For Casino on the Gorillas, I wouldn't, of course, analyze what they do. What I think is really key on this business is not signing a partnership, is to analyze how you are differentiating elements on how you gain the battle. My obsession is to gain all the battles. And I know that when I have Uber, Cajoo and the logistics that Elodie is building inside our stores, I know that I have the winner here. So that's my only obsession. After, I'm always happy when I see my colleague coming a few weeks after on the same subject, it proved that we are now back on frontrunner on every subject. So it's a very good news. Second subject, Amazon, I think it's -- time is flying. It's 12 years I have for main competitor, Amazon. So I know they are good. They are even exceptional, and they are capable of everything. Today, what I see, today with humility is that it's very difficult for them to enter into this market of food, and particularly, fresh foods. And I see all the initiatives and these initiatives are not at the level of Amazon. That's the reality. That's just facts. I remember, but it's what I see. On my work and the work of all the team is to benefit from that and to think about what is the model they couldn't replicate. And the model they couldn't replicate is the model where you manage to marry 14,000 stores, including hyper, super, cash & carry proximity, 2.5 billion visitors on digital and 8 billion granular first part data. When you have all that, it's not replicable by Amazon. They could do many things, but not that. And that's the priority. That's how we have thought about that weeks after weeks, months after months, to have the real industrial and strategic answer to Amazon. For the rest, for your last question, we are always open to partnership, as you know. But I'm sure you understand today that we have the means for our development. We generate this free cash flow. Today, we give you the ambitions in terms of investment, EUR 3 billion on this plan improves the financial solidity of the group and the capability to develop by ourselves.

William Woods, Bernstein. A question on the margin. So you said that you're going to triple your GMV to around EUR 10 billion, which I think adds around EUR 6 billion to EUR 7 billion over the next few years. And add EUR 200 million ROI by 2026. That would imply about 2.8% to 3.3% margins. Does that sound fair? And is that higher or lower than what you're achieving today?

So I think several pieces of information. The first one is that what we're presenting today is not about a new channel. It's about how being digital, creating all these nodes that we've talked about is about data and reaching data and having omnichannel customers. And you saw on the page what was the value of such omnichannel customers. That doesn't mean that we're not focusing -- and believe me, I put a lot of pressure on a day-to-day basis, on how we improve our pure e-commerce operations. And Elodie showed you the numbers, 11 points in increase of operating margin over just 2 years. And we shared with the investors community already last year that from that point in time, more volume with more profit at Carrefour e-commerce. So this is where we're going to have the EUR 200 million coming from the e-commerce side. But you see that it's not just this. It is the possibility, the trigger in order to generate all the rest. The Carrefour Links, EUR 200 million and the financial service, EUR 200 million. And what we did not factor in our presentation is just enabling the digitization of all our retail operations. So I think that developing e-commerce, reaching EUR 10 billion of GMV is much beyond just the EUR 200 million of extra profit in e-commerce.

[indiscernible] Asset Management. I'm very happy to see that you embrace the future. So it's great and that you want to win the battle, which is even better. But you gave a number, which is not winning. You say market share 20% in 2026, i.e., the same bricks and mortar market share in France. I think it's like 27%. So what's wrong? Because if you invest before everybody else, if you have all the goal to do it, you should have a higher market share.

I know you are very good at math, so I'm sure you would understand very easily. We start at 7% -- So 7% was the day we launched 2018 was the market share on e-commerce. Today, we are 15%, okay? Tomorrow, we will be 20% and I hope more. So you see the way we've made. Unfortunately, as 10 years ago, we missed the Click & Collect battle, it's like that. The Click is 50% of the drive, as you know. And for us, it was under 10%. So this gap is there. But the -- if you asked me the question even 2 years ago, is it possible for you? Soon to be the winner. To have a market share on e-commerce above your natural market share, I would have any hesitation. Now I know it's possible, and it will be done, and that is the ambition to have market share superior to 20% and to win all the battle in all the markets. So we will be the winner with a market share superior to our physical market share in all our key countries. But there was a start.

And that is the French number. If you look to Spain, it was the same 20% where we have a 10% to 12% brick-and-mortar market share. So we already have a number of brick-and-mortar market share in Spain in digital, and it will be almost double what we have today in 5 years' time.

How do you plan to manage the change management within the integrated store franchisees, master franchises market?

For us, we changed management, we mentioned. It's key. We've managed to transform. I give the example of our convenience stores, that franchisee. So I mean, meaning franchisee, you can embrace the e-commerce race as much -- even faster, I would say. Because they know that is key to their business. So we've been able to do this. That's the way we think.

[indiscernible]

Well we're not going to provide a precise split. But clearly, the bulk of the growth will be coming from food. This is where we are generating today most for GMV, about 85%. But clearly, there is a strong acceleration. So percentage-wise, the acceleration of nonfood is also expected to be very significant because, as Elodie said in her presentation, nonfood has been relatively small today because we are focusing as a priority on food. This was the central game and battle for Carrefour. Now that we have all that well in hand and accelerating, we can devote more energy and resources on the nonfood side, and that has been presented. So strong acceleration on nonfood, but still a minor part of the EUR 10 billion GMV.

All right. So we're going to take the 2 questions. comes from interim for historically,

Supplier and media income has put at risk the customer centricity of food retailers with stores being run for suppliers, not consumers. Do you think this conflict has now been broken in the digital world?

Yes. I'm absolutely convinced that when you put the data at a center of a company, when you build a data company, you serve in the same time the interest of the suppliers. You help them to improve their marketing. You help them to better monitor their sales. And in the meantime, you serve the customers. And I think all the ideas, all the presentation of Elodie on the different item was really to demonstrate what wouldn't have been possible for us 2 or 3 years ago. We didn't have this vision and this granularity on these facts to demonstrate that this first-party data, this data lake of EUR 8 billion of granular first-party data, homogeneous, unified help us for everything, for our suppliers, for our customers who are our obsession, for our employees because the way they would manage the different responsibilities will be helped. And that's the magic of the digital when it's well monitored. We see that today. In every item, things will improve at a normal scale in the next 5 years.

The last question, I will actually mix 2 questions, which are a bit more down to earth. About the EUR 10 billion GMV target and the EUR 600 million ROI target or additional ROI? Can you please specify what will be the geographical mix? What do you expect in terms of geographies?

Well, as I said, we have today 3 main large countries. We are devoting a lot of energy. We want to be very strong in these geographies. So a lot of effort is going to be put in France, Spain, and Brazil. Clearly, with different opportunities, we know that the market is more mature in France and probably a stronger opportunity as far as e-commerce is concerned, in the other geographies. As far as financial services are constrained, I think Brazil is a very unique and special situation for us. This is where we have or expertise or center of expertise. So we're going to be investing and building a lot on financial services in Brazil. As you know, there is a lot happening there at the moment and in the coming years.

Ladies and gentlemen, thank you so much for attending our Digital Day. I hope you could feel the enthusiasm and the excitement I look forward to the road ahead for Carrefour. Stay tuned for more from us. Thank you very much. Take care and see you very, very soon. Thank you.

Thank you. Thank you.