Big C puts off new outlets

       After slowing its expansion plans for this year, Big C Supercenter Plc will invest 1.5 billion baht next year to open between three and five outlets.
       Big C will focus on the most profitable locations, where outlets can generate profit within a year or 18 months, said chief financial officer and vice-president Rumpa Kumhomreun.
       The company has spent 578 million baht this year to open only one Big C outlet, in Si Sa Ket province in April.Last year, it invested 5.5 billion baht in new stores. The investment slowdown reflects a lack of confidence in the country's economy. Big C currently has 67 outlets.
       Big C's first-half sales grew 3.9% yearon-year to 34.44 billion baht, although net profit fell 3.4% to 1.31 billion baht.
       Sales growth slowed due to the closure of Suvarnabhumi Airport, with the sharp fall in arrivals hitting Big C outlets in tourist destinations. The country's economic downturn has also made customers limit their budgets - especially on non-food items, which generate higher profits than food.
       Big C has also spent 250 million baht on upgrading its computer systems. Merchandising software will be installed in all stores by October.
       The company expects sales this year to grow by 5%, compared with 9% last year.
       In another development, CP All Plc,the operator of 7-Eleven convenience stores, reported first-half net profit up 27.3% year-on-year to 2.48 billion baht,on revenue down 14.1% to 55.84 billion.
       The company's second-quarter consolidated net profit was up 42.8% yearon-year to 1.23 billion baht, while revenue slipped 11.1% to 28.57 billion.
       Poor performance by retail superstores in China caused the second-quarter slide in revenue, said CP All CEO Korsak Chairasmisak.
       Revenues from convenience stores in Thailand grew 16.1% to 28.31 billion baht, due to a wider selection of chilled and frozen meals to meet high demand.Food now makes up 70% of the inventory in 7-Eleven outlets.
       Shares of Big C closed on the Stock Exchange of Thailand at 46.50 baht, up 75 satang, in trade worth 8.27 million baht. CP All shares closed at 17.90 baht,up 20 satang, in trade worth 239.5 million baht.