My Life Can Hang

Li Changqing nodded with a smile: "Of course, I will analyze the reasons for our quotation to President Peng and President Tang from three o'clock.

First, Carrefour's stores in China lack sufficient coverage density.

Not to mention the small convenience stores, there are only 24, very few.

In the running model stage, this asset has little value.

The main focus of Carrefour Huaxia's business is still in hypermarkets.

51 cities, 210 stores.

Each city is apportioned, which is about 4.1 stores.

The density is not too high to achieve full coverage of a city.

I think Mr. Tang and Mr. Peng should be clear that the retail industry will have greater value and competitiveness only when there is sufficient regional coverage density.

Second, Carrefour's six warehousing and distribution centers were started and constructed one after another after 6.

Carrefour's warehousing also adopts the asset-light model of leasing warehouses and leasing equipment in cooperation with GLP.

Generally speaking, even if the supermarket distribution center is completed, it will take about 2 years to run in.

This is also one of the biggest problems of your company in China, and it is not very good in the supply chain.

If the supply chain is not strong, you cannot beat other regional retailers locally.

Third, Carrefour's performance has been declining in terms of single store performance.

The closest competitor to Carrefour is Sun Art Retail.

Both of you are operating in a single hypermarket format, and both are operating in a large-scale "shopping street" leased area.

Carrefour's annual per square meter efficiency is about 7500 yuan.

The annual per square meter of Sun Art Retail is about 7700 yuan.

Just looking at the performance figures, you are not much different from Sun Art Retail.

But in fact, if some factors are excluded, your actual performance per square meter is quite different from that of Sun Art Retail.

On the one hand, the store area of ​​Sun Art Retail is larger, and each store of Sun Art Retail averages about 2.68 square meters.

Carrefour's hypermarkets in China have an average area of ​​about 1.9 square meters per store.

Therefore, Sun Art Retail has achieved a higher floor efficiency with a larger leased area. "

Li Changqing concluded: "From these three points alone, the drawbacks of Carrefour are clear enough. I think it is the most sensible for the Carrefour Group to stop losses in time."

Bloomberg, who was originally flat, glanced at Tang Jianian.

"We all admit these problems, but I think Mr. Li should know that you are not the only one interested in the business of Carrefour Huaxia District. Are you not afraid that we will adopt the bidding model?"

Li Changqing shook his head with a smile: "We acquired Carrefour Huaxia from the perspective of business integration.

The negative assets and loss-making operations of Carrefour Huaxia subsidiaries, as well as the complex ownership structure of regional stores, all require very high integration capabilities.

A careless move can lead to a financial black hole.

There may be companies who dare to bid, but the price must not be as high as ours. "

Bloomberg is naturally well aware of the situation of Carrefour Huaxia.

In order to seize the market in the early morning, Carrefour's stores in first- and second-tier cities and local small and medium-sized partners 'raised funds' to expand stores.

To put it bluntly, it was to cooperate with some wealthy people at the time and be responsible for paying the money.

Carrefour is responsible for the brand, with a small amount of funds, to open Carrefour stores together.

The number of such small bosses is quite large, and Carrefour has a total of 210 stores.

There are almost 25 stores with annual sales exceeding 2 million yuan, and half of the shares are in the hands of those cooperative shareholders.

Not to mention the development ideas of Carrefour, which is the biggest problem.

They concentrated on opening stores in first- and second-tier cities at that time, which was also related to the environment at that time.

They are the first foreign retailers to enter China.

So at that time, Carrefour initially received very low rents.

However, due to the advancement of China's urbanization in the later period, these Carrefour stores have become the core business district of the city.

There is a lot of pressure on rents for store properties.

And according to the 15-20 year lease of the hypermarket store.

The properties of these stores will soon usher in a lease exchange period.

This is also the reason why the Carrefour headquarters is eager to divest the business in China.

Even if the lease is not changed, the loss is so serious. If the lease is changed, I don’t know how much the loss will expand.

Maybe even in a few years, Carrefour's Huaxia business has to be transferred for one yuan, as long as someone is willing to take on the debt.

For Carrefour headquarters, the sooner the Huaxia business is divested, the less they lose.

Chapter 401. 400, President of Huaxia District

"It seems that Mr. Li has made adequate preparations. We, Carrefour, admit that the places you put forward are our shortcomings. We are also willing to seriously consider your offer, but we also have our own requirements."

Bloomberg paused, looked directly at Chen Dongcheng and said, "We do not accept a wholly-owned acquisition and must retain 20% of the shares."

Li Changqing just wanted to argue, but was stopped by Chen Dongcheng.

"I agree, but the Carrefour Group has only one seat on the board."

"We have no other opinion. Carrefour Huaxia will hand it over to President Chen in the future."

Bloomberg is very decisive. Compared with other hesitant buyers, Donghua Fund is the only one who is ready to talk about cooperation with real money.

"I believe this is the wisest decision your group has ever made!" Chen Dongcheng shook hands with Bloomberg and said.

The two big bosses reach a consensus, and the rest is much easier.

It is nothing more than the division of equity and the division of board seats.

As a result of the negotiation, the subsidiary of Carrefour Huaxia District will transfer 80% of the shares to Chen Dongcheng.

Carrefour's European headquarters only holds 20% of the shares.

In terms of valuation, Chen Dongcheng made some compensation, calculated according to 10 billion US dollars.

Compared with Li Changqing's initial offer, it has increased by [-] million US dollars, which makes Bloomberg's face look much better.

"After taking the photo in a while, I need to go back to Europe to report to the board of directors."

After Bloomberg and Chen Dongcheng shook hands and took a photo, they hurried back.

As soon as he left, Tang Jianian shrugged his head in resignation.

Don't think he knows, Chen Dongcheng will definitely cut him.

These foreigners with Chinese names are typical of Chinese people who make money and look down on Chinese people.

Just from the composition of Carrefour's executives, you can see one or two.

All domestic regional presidents and headquarters executives are all white-skinned Europeans.

In the beginning, they could still take advantage of the mature European business model.

Over time, their indecision and missed opportunities will become more and more obvious.

Once the Chinese learn from one thing and start to fight back, they will be crushed.

Chen Dongcheng didn't mean to talk nonsense with them, he had to help Carrefour Huaxia find a new leader quickly.

As for who should be at the helm, that was already identified by President Chen.

……

"Wenyuan, here."

Chen Dongcheng sat in a corner of the coffee shop and waved to Chen Wenyuan who had just walked in.

Chen Wenyuan walked over with a smile, shook hands with Chen Dongcheng before taking a seat, and asked curiously, "Mr. Chen, did you call me here?"

"Not urgent."

Chen Dongcheng called the waiter and asked with a smile, "What would you like to drink?"

Chen Wenyuan had to suppress his curiosity and said to the waiter, "Just a cup of latte."

After ordering coffee, Chen Dongcheng asked a question first.

"If you were asked to manage a foreign-funded retail group with a history of more than 20 years, complicated internal factions, and chaotic equity, what would you do?"

Chen Wenyuan's heart beat abruptly, and he looked at Chen Dongcheng in amazement.

He couldn't figure out what Mr. Chen meant.

Chen Wenyuan sorted out his thoughts before opening his mouth and said, "If I were to be the president, I would first clean up the interior, reduce the proportion of foreign executives, and give domestic talents a channel for promotion."

"During my work at Walmart, I discovered that these foreign companies have a very distinctive feature."

"That is to trust their own people unconditionally. They don't take the Huaxia market seriously at all."

"This kind of situation exists not only in Carrefour, but also in Walmart, but it is not very obvious."

Chen Dongcheng nodded lightly, as expected of a talent he liked, and immediately guessed that the company he was talking about was Carrefour.

"Carrefour's management can be described as extremely incompetent, first of all, they are strategically lazy and have no sense of crisis.

They have established procurement and distribution centers in other countries, but not in China.

At the same time, among all the retail enterprises entering Huaxia, the only one is the exclusive Lok Fu that does not have a procurement and distribution center.

I think it might be the gang of self-righteous executives, still basking in their early accolades, unaware that they are on the brink of extinction. "

Chen Wenyuan's tone was a bit sarcastic, but also a bit disappointed.

"In the early days, talents from Carrefour were called the Whampoa Military Academy in the retail industry, and they were competing for existence among various retail companies.