Climate change is set to be a ‘decisive challenge’ for retail leaders in the coming years, according to Alexandre Bompard, the chief executive of French grocery giant Carrefour.
Speaking at the 2024 World Retail Congress in Paris, Bompard said that tackling climate change is “more than just reducing our climate emissions – it’s about how climate change directly impacts our businesses.”
Resource scarcity
He cited the rising cost of commodities such as olive oil and cocoa, as well as the volatility of energy prices, to reinforce why climate change is “making resources more scarce [and] more expensive.
“It is in our best interest to combat global warming sooner rather than later, as delay will only increase costs, not to forget the demanding expectations of our customers.”
Impact of digital transformation
Bompard also touched upon digital transformation in his address, the opening speech of the Congress, stating that data analytics and generative AI have “changed the scale of transformation” for retailers.
“This ranges from deep rooted marketing communication operations to brutal optimisation of the supply chain,” he said. “It also changes the way we choose our segments, how we can offer personalised promotions and when we should have enhanced services to our customers.”
On the topic of inflation, meanwhile, he added that the lingering effects of last year’s period of inflation is likely to continue to impact businesses.
“Low prices are no longer a given,” Bompard said. “We are witnessing highly fragmented shifts in customer behaviour, including a strong demand for discount options, and fierce competition between national brands and private labels on emerging new distribution channels.”
