Myer, Australia's largest department store chain, plans to raise up to US$2 billion in a share offering that will test investor appetite for retail stocks and may encourage other IPOs in the sector.
Myer, which was taken private by the US private equity firm TPG in 2006, said in its prospectus yesterday that it would offer up to 499.5 million shares in a range of A$3.90 to A$4.90 each.
The offering is expected to be divided equally between retail "mum and dad"investors and institutions, but analysts said that institutional investors might be cautious.
"It's very opportunistic at the moment.You are coming off a fairly strong tailwind from (government) stimulus and low interest rates," said Karara Capital portfolio manager Akshay Chopra.
The IPO market across Asia, particularly in Hong Kong, has heated up in recent weeks, but not all have fared well in a signal that investors have limited appetite for overly rich IPO valuations.
Myer will be Australia's largest IPO since drilling services company Boart Longyear Ltd in April 2007.
A consortium led by TPG Capital bought Myer for A$1.4 billion from Coles Group in 2006, and has spent more than A$370 million in updating logistics operations and renovating stores.
The owners of Myer are seeking to capitalise on a 50% share market rally that has lifted Australian shares near an 11-month high, while retail sales have been underpinned by government cash handouts to boost the economy.
Private equity firms have been stymied by the freezing of credit markets for two years and are only now being able to offload stakes bought during the boom as confidence recovers.
"The wide range in valuation (for Myer) is already telling us they are keeping options open -if institutional holders are a bit wary they will price at the low end of the range," said Chopra.
A successful listing by Myer could encourage other Australian retailers held by private equity firms to follow suit.
Analysts say potential IPO candidates include camping and outdoor gear retailer Kathmandu, owned by Goldman Sachs JBWere and Quadrant Private Equity, and Archer Capital-owned Ascendia Retail, which runs the Rebel Sport chain.
The indicative pricing implies Myer will have a market capitalisation of A$2.28 billion-$2.77 billion, plus debt of A$392 million. The sale will be lead managed by Credit Suisse, Goldman Sachs JBWere and Macquarie Capital Advisors.
Myer chief executive Bernie Brookes said the offering would also be marketed in the US, UK and Asia.
"There are a large number of IPOs taking place through Asia and there is still a more difficult period in both the UK and the US in regard to available capital, so we have not set any objectives for international investors," Brookes said.Myer has 65 stores across Australia, nearly double its upmarket rival David Jones'36 stores, and claims three million shoppers a week through its doors in a country of 21 million.
But the retail environment may not look as rosy in 2010.
"Everyone is well aware of some of the headwinds facing consumers over the next 12 months, as stimulus is removed," said White Funds Management portfolio manager Angus Gluskie.
Indeed, Australia's central bank governor Glenn Stevens said yesterday interest rates would be raised as demand picks up.
Myer said that based on proforma 2010 earnings, the company would be valued at a multiple of 14.3-17.3 times.Karara's Chopra said that implied a premium to the multiple of industrial stocks of around 13 times earnings.
TPG and Blum Capital have a combined stake of 84.2%, while the Myer family and management hold the balance. Myer said TPG and Blum would retain a stake of up to 13.5% after the initial public offering.
Share pricing is expected on Oct 30 and the shares are due to start trading Nov 2, the prospectus said.
Monday, September 28, 2009
Retailers make green shift
Retailers are increasingly aware of environmental problems and are moving step-by-step to go green not only in their own stores but also in their suppliers.
Tesco Lotus and Central Department Store are at the forefront of green initiatives this year with plans to reduce carbon dioxide (CO
2) released.Tesco Lotus, for example, is seeking partners for a green label for products,said Saofang Ekaluckrujee, senior corporate affairs manager at Ek-Chai Distribution System Co, the chain's operator.
The company wants to create customer awareness, she said.
"If a 'green tax' takes effect immediately, it will definitely encourage private companies and producers to grow green more," said Ms Saofang.
Ex-Chai has been very successful in joining with Philips Electronics Co to develop T5 light bulbs used at Tesco Lotus stores since 2006, she said. The company plans to change all bulbs at its stores to T5 models by next year.
The company also plans energy-saving initiatives based on its ground-breaking Salaya branch, including installing sliding doors for frozen products at all Tesco Lotus stores nationwide, she said.
Sirikate Chirakiti, executive vicepresident of store operations at Central Department Store, said the company was changing the raw materials of foam containers used at Central Department Store's Chidlom branch and Zen Department Store.
Central Department Store is also conducting a feasibility study on new technology for its electrical transformer at Chidlom next year. This is expected to reduce energy use by 1-2%.
From 2004 to the first eight months of 2009, the company has saved 17.79 million kilowatts in energy, she said.
The company recently started using light-emitting diodes in showcases for several product categories and will install them in other parts of department stores.
Central Department Store is considering selling environment-friendly products including fashion wear, she said.
Tesco Lotus and Central Department Store are at the forefront of green initiatives this year with plans to reduce carbon dioxide (CO
2) released.Tesco Lotus, for example, is seeking partners for a green label for products,said Saofang Ekaluckrujee, senior corporate affairs manager at Ek-Chai Distribution System Co, the chain's operator.
The company wants to create customer awareness, she said.
"If a 'green tax' takes effect immediately, it will definitely encourage private companies and producers to grow green more," said Ms Saofang.
Ex-Chai has been very successful in joining with Philips Electronics Co to develop T5 light bulbs used at Tesco Lotus stores since 2006, she said. The company plans to change all bulbs at its stores to T5 models by next year.
The company also plans energy-saving initiatives based on its ground-breaking Salaya branch, including installing sliding doors for frozen products at all Tesco Lotus stores nationwide, she said.
Sirikate Chirakiti, executive vicepresident of store operations at Central Department Store, said the company was changing the raw materials of foam containers used at Central Department Store's Chidlom branch and Zen Department Store.
Central Department Store is also conducting a feasibility study on new technology for its electrical transformer at Chidlom next year. This is expected to reduce energy use by 1-2%.
From 2004 to the first eight months of 2009, the company has saved 17.79 million kilowatts in energy, she said.
The company recently started using light-emitting diodes in showcases for several product categories and will install them in other parts of department stores.
Central Department Store is considering selling environment-friendly products including fashion wear, she said.
OP GARDEN TARGETS THAI CUSTOM
OP Place shopping centre operator Bhandhamitri, a subsidiary of TCC Group, has opened a sister shopping centre, OP Garden.
The new centre was built at a cost of Bt300 milliion with the goal of expanding the firm's customer base to welcome more Thai shoppers.
Titapar Tepakhun, managing director of Bhandhamitri, said the company decided to open the new shopping centre after experiencing a more than 50-per-cent drop in foreign customer traffic in the wake of the political turmoil of the past two years, with last year's blockade of Suvarnabhumi Airport doing particular damage.
"OP Place has always relied heavily on foreign shoppers, whose numbers are ,pre semsotive to political troubles.This is a major reason we decided to open a new shopping mall - as a way to reduce such risks," Titapar said.
Despite the emergence of signs that the economy is recovering, the number of the centre's foreign customers has seen only a modest rebound, she said.
The company is confident that customer levels will be fully restored by the fourth quarter, which is high tourist season, however.
Despite the drop in traffic, shopowners at OP Place have staved on due to the strength of the OP brand, Titapar said. "Our owners recognise the value of the OP brand, which accompanies only exclusivge products. They want to move to OP Garden, but we want to create a distinct segment [at OP Garden] in terms of products and target customers. For that reason, the brands at OP Garden are unlike those at OP Place. The product grade at OP Garden is premium, but the prices are lower than those at OP Place."
OP Place's clientele generally comprises foreigners and consumers with extraordinarily high purchasing power, Titapar said, while the main target group at OP Garden is Thais. Half of the shop-owners at OP Garden will be Thais, while OP Place has only 30 Thai vendors.
Most shop-owners at OP Garden sell the bulk of their products through the International Gift Fair & Bangkok International Houseware Fair (BIG&BIH). Their premium products are attractive but have few selling venues, she said.
Bhandhamitri also plans for OP Garden to host events to generate revenue. Such activities cannot be held at OP Place, where shop-owners and customers prefer privacy.
OP Garden opened for business two months ago, but the grand opening will take place in November. The mall is located on Charoenkrung Road, near its sibling. OP Garden will have a more contemporary look than OP Place, which features an "Asian heritage" style.
Titapar said the high land price was the main reason for OP Garden's hefty cost. The Bt300-million investment covers the cost of the land, renovation of existing structures and the installation of facilities.
The substantial investment led the company to set the mall's rental fee at Bt1,500 per square metre per month, compared to Bt1,000 at OP Place. OP Garden is 75 per cent occupied and is expected to be full by April, Titapar said.
The new centre was built at a cost of Bt300 milliion with the goal of expanding the firm's customer base to welcome more Thai shoppers.
Titapar Tepakhun, managing director of Bhandhamitri, said the company decided to open the new shopping centre after experiencing a more than 50-per-cent drop in foreign customer traffic in the wake of the political turmoil of the past two years, with last year's blockade of Suvarnabhumi Airport doing particular damage.
"OP Place has always relied heavily on foreign shoppers, whose numbers are ,pre semsotive to political troubles.This is a major reason we decided to open a new shopping mall - as a way to reduce such risks," Titapar said.
Despite the emergence of signs that the economy is recovering, the number of the centre's foreign customers has seen only a modest rebound, she said.
The company is confident that customer levels will be fully restored by the fourth quarter, which is high tourist season, however.
Despite the drop in traffic, shopowners at OP Place have staved on due to the strength of the OP brand, Titapar said. "Our owners recognise the value of the OP brand, which accompanies only exclusivge products. They want to move to OP Garden, but we want to create a distinct segment [at OP Garden] in terms of products and target customers. For that reason, the brands at OP Garden are unlike those at OP Place. The product grade at OP Garden is premium, but the prices are lower than those at OP Place."
OP Place's clientele generally comprises foreigners and consumers with extraordinarily high purchasing power, Titapar said, while the main target group at OP Garden is Thais. Half of the shop-owners at OP Garden will be Thais, while OP Place has only 30 Thai vendors.
Most shop-owners at OP Garden sell the bulk of their products through the International Gift Fair & Bangkok International Houseware Fair (BIG&BIH). Their premium products are attractive but have few selling venues, she said.
Bhandhamitri also plans for OP Garden to host events to generate revenue. Such activities cannot be held at OP Place, where shop-owners and customers prefer privacy.
OP Garden opened for business two months ago, but the grand opening will take place in November. The mall is located on Charoenkrung Road, near its sibling. OP Garden will have a more contemporary look than OP Place, which features an "Asian heritage" style.
Titapar said the high land price was the main reason for OP Garden's hefty cost. The Bt300-million investment covers the cost of the land, renovation of existing structures and the installation of facilities.
The substantial investment led the company to set the mall's rental fee at Bt1,500 per square metre per month, compared to Bt1,000 at OP Place. OP Garden is 75 per cent occupied and is expected to be full by April, Titapar said.
HIGH-END RETAIL PROPERTIES FACE POOR DEMAND
The global downturn has sent retail rents plunging on some of the world's most famous shopping streets, a study by global real estate group Cushman and Wakefield released recently showed.
Prime rents on more than half of 274big-name streets have fallen in the past 12 montjhs, said the report, which surveyed such storied venuses as Fifth Avenue in New York, the Champs-Elysees in Paris and Hong Kong's Causeway Bay. The agency said the decline in rents was the largest ever recorded in the study's 24-year-old history.
"The last 12 months have been one of the most difficult periods ever for the retail sector, with consumer spending and retail sales down in many markets," said John Strachan, global head of retail at Cushman. "In the previous 12-monjths period global retail markets appeared to be fairly resilient, but more significants as the full impact of the downturn has been realised."
But he added that "the worst is almost certainly now behind us."
Fifth Avenue retained its number one rating as the world's most expensive street, where retailers pay US$1,700 (Bt57,000) per square foot a year, a decline of 8.1 [er cent from 2008. Causeway Bay was the second most expensive steet land the Champs Elysees the third.
Sao Paulo's Alameda Lorena saw the largest gain in retail rents, up 111 per cent from 2008. The sharpest fall was on Colaba Causeway in Mumbai, where retail rents declined 63.5 per cent.
The decline in rents was the largest ever recorded in the study's 24-year history.
Prime rents on more than half of 274big-name streets have fallen in the past 12 montjhs, said the report, which surveyed such storied venuses as Fifth Avenue in New York, the Champs-Elysees in Paris and Hong Kong's Causeway Bay. The agency said the decline in rents was the largest ever recorded in the study's 24-year-old history.
"The last 12 months have been one of the most difficult periods ever for the retail sector, with consumer spending and retail sales down in many markets," said John Strachan, global head of retail at Cushman. "In the previous 12-monjths period global retail markets appeared to be fairly resilient, but more significants as the full impact of the downturn has been realised."
But he added that "the worst is almost certainly now behind us."
Fifth Avenue retained its number one rating as the world's most expensive street, where retailers pay US$1,700 (Bt57,000) per square foot a year, a decline of 8.1 [er cent from 2008. Causeway Bay was the second most expensive steet land the Champs Elysees the third.
Sao Paulo's Alameda Lorena saw the largest gain in retail rents, up 111 per cent from 2008. The sharpest fall was on Colaba Causeway in Mumbai, where retail rents declined 63.5 per cent.
The decline in rents was the largest ever recorded in the study's 24-year history.
Secrets of 20 successful years of 7-Eleven
Entering a new phase as a Convenience Food Store chain
Twenty years ago, the first ever 7-Eleven convenience store in Thailand opened its doors on a bustiling corner of Patpong road. The ear-soothing greeting "Sawasdee Krub/Ka" now resounds seven days a week, around the clock, echoing ever louder each day in tandem with the ever expanding network of stores all across the country.
Today, everybody knows 7-Eleven. Indeed, as everybody's favourite convenience store, it has become integral to the Thai urban lifestyle.
Nevertheless, even with its remarkable growth and ever larger customer base, the company recognises the need to be flexible and responsive to changing patterns of customer demand. In response to the latest trends, therefore, the company is now in the process of changing its business model from being a chain of convenience stores to being a chain of convenience food stores, starting from this year onwards.
Explained Mr. Korsak chairasmisak, chief Executive Officer of CP All Public Company Limited: "7-Eleven's strong growth is the result of the quality products it sells, especially tasty and hygienic instannt and ready-to-eat foods. Together with their convenient locations and friendly staff, it's why 7-Eleven stores respond so well to consumer needs in today's fast-pace urban lifestyle."
The executive continued that: "7-Eleven's new status as a Convenience Food Store chain will now also provide customers with quick service quality food products, ranging from snacks to heavy meals."
"The success of our business over thhe past 20 years has put us in a unique position to understand what our customers really want. And as it seems they want us to put more focus on instant food products, these will now account for about 70 percent of our entire product range and may well increase even further in the months to come," added Mr. Korsak.
a prototype store under the new concept was unveiled recently by CP All Public Limited at Sibunruang 1 Building on Silom Road. The original 7-Eleven convenience food store represents a state-of-the-art expression of the new concept of "Convenient Meals".
Marking the occasion, mr. Joe DePinto, Chief Executive Officer of 7-Eleven, Inc., USA, along with other key executives, flew in to congratulate the Thai executive team.
During their visit, the executives also took time to visit Panyapiwat Institute of Technology (PIT), CP All's in-house university of retailing business management established by the company to train capable personnel to facilitate its ongoing business expansion. subsequently, the party went on to visit C.P.Retailing and Marketing Company Limited (CPRAM), the manufacturer and seller of frozen food and fresh bakery that are supplied to 7-Eleven stores.
Reflecting on 7-Eleven's metamorphosis, Mr. Piyawat Titasattavorakul, Managing Director of CP all Public Company Limited, said: "7-Eleven is a Thai-born business that pioneered convenience retailing in communities."
"Today's 20thh anniversary celebration is really a springboard for us to move into the next phase of our development. Going forward, we will continue to strive to maintain our product quality so as to ensure consistent customer satisfaction."
"There are those who say our stores undermine traditional retail businesses in communities but in fact we are not competitors at all. Rather we are providers of complimentary ranges of products that customers demand. As such, we cordially co-exist with other small shops."
Success is never easy to achieve and even harder to maintain. nevertheless, 7-Eleven remains fully resolved to surmount all obstacles in order to serve its customers by meeting a wide range of their needs, including, from now on, delicious, high-quality and, above all, convenient meals in what is surely destined to become Thailand's leading convenience food store chain.
Twenty years ago, the first ever 7-Eleven convenience store in Thailand opened its doors on a bustiling corner of Patpong road. The ear-soothing greeting "Sawasdee Krub/Ka" now resounds seven days a week, around the clock, echoing ever louder each day in tandem with the ever expanding network of stores all across the country.
Today, everybody knows 7-Eleven. Indeed, as everybody's favourite convenience store, it has become integral to the Thai urban lifestyle.
Nevertheless, even with its remarkable growth and ever larger customer base, the company recognises the need to be flexible and responsive to changing patterns of customer demand. In response to the latest trends, therefore, the company is now in the process of changing its business model from being a chain of convenience stores to being a chain of convenience food stores, starting from this year onwards.
Explained Mr. Korsak chairasmisak, chief Executive Officer of CP All Public Company Limited: "7-Eleven's strong growth is the result of the quality products it sells, especially tasty and hygienic instannt and ready-to-eat foods. Together with their convenient locations and friendly staff, it's why 7-Eleven stores respond so well to consumer needs in today's fast-pace urban lifestyle."
The executive continued that: "7-Eleven's new status as a Convenience Food Store chain will now also provide customers with quick service quality food products, ranging from snacks to heavy meals."
"The success of our business over thhe past 20 years has put us in a unique position to understand what our customers really want. And as it seems they want us to put more focus on instant food products, these will now account for about 70 percent of our entire product range and may well increase even further in the months to come," added Mr. Korsak.
a prototype store under the new concept was unveiled recently by CP All Public Limited at Sibunruang 1 Building on Silom Road. The original 7-Eleven convenience food store represents a state-of-the-art expression of the new concept of "Convenient Meals".
Marking the occasion, mr. Joe DePinto, Chief Executive Officer of 7-Eleven, Inc., USA, along with other key executives, flew in to congratulate the Thai executive team.
During their visit, the executives also took time to visit Panyapiwat Institute of Technology (PIT), CP All's in-house university of retailing business management established by the company to train capable personnel to facilitate its ongoing business expansion. subsequently, the party went on to visit C.P.Retailing and Marketing Company Limited (CPRAM), the manufacturer and seller of frozen food and fresh bakery that are supplied to 7-Eleven stores.
Reflecting on 7-Eleven's metamorphosis, Mr. Piyawat Titasattavorakul, Managing Director of CP all Public Company Limited, said: "7-Eleven is a Thai-born business that pioneered convenience retailing in communities."
"Today's 20thh anniversary celebration is really a springboard for us to move into the next phase of our development. Going forward, we will continue to strive to maintain our product quality so as to ensure consistent customer satisfaction."
"There are those who say our stores undermine traditional retail businesses in communities but in fact we are not competitors at all. Rather we are providers of complimentary ranges of products that customers demand. As such, we cordially co-exist with other small shops."
Success is never easy to achieve and even harder to maintain. nevertheless, 7-Eleven remains fully resolved to surmount all obstacles in order to serve its customers by meeting a wide range of their needs, including, from now on, delicious, high-quality and, above all, convenient meals in what is surely destined to become Thailand's leading convenience food store chain.
SCG SEEKS THIRD GROUP OF POOR STUDENTS
The Siam Cement Group has begun a third year of its Home Mart Career Choice programme, aiming to provide training to 25-30 poor students who want to excel in knowledge of construction materials.
SCG Distribution's president Kajohndet Sangsuban said the programme, run in cooperation with Samut Prakan Technical College, had already produced 63 students and some of them were now working for SCG.
With an annual budget of Bt3 million, the programme targets mainly those who want to pursue careers in construction-material distribution centres, mainly Home Mart, which is an SCG business unit.
Kajohndet said the programme was open to students from around the country. However, SCG's management selected candidates by interview only.
"Our criteria involve the students'family incomes. That is our first priority in selecting students to receive the scholarship. Then we will look at their study profile. We want to give poor students the opportunity for education and a job," he said.
The company pays all of the expenses for a two-year course for successful candidates, averaging Bt100,000 per person per year.
Apinya Todmuang, 20, from Chiang Mai, said she decided to join the programme in 2007 because it met all of her expenses and was also a non-binding scholarship. Winning a scholarship helped her family by cutting her study costs. When she graduated, she was guaranteed a job with a good income of Bt7,000 per month. Apinya now works at a Home Mart distribution centre in Nakhon Pathom province.
Another successful graduate, Winai Jaroenwong, 22, came from Nakhom Phanom province to win an SCG scholarship. He now works at Home Mart Bang Na, with a salary of about Bt8,000 per month.
"I applied for this programme because I believed that when I graduated, I could find a job and help my family to have a better-quality life. This programme gave me an education and a job opportunity," he said.
Under the programme, SCG and the college give the students the knowledge and the experience to join the staff of a construction-materials distribution centre. They spend six months at college lectures, followed by six months on-the-job training at a Home Mart store, for a total of two years'study.
When they graduate, they can seek a job with Home Mart, but they are also free to do anything they want.
"This is a non-binding scholarship," Kajohndet said. However, graduates get better opportunities than other students because they hold both a college certificate and an SCG certificate for having passed through the Home Mart Career Choice programme.
Thirty-two students graduated from the programme's first year. Of these, 31 now work at Home Mart distribution centres.
The second group, totalling 31 students, will graduate next year.
Applications for the third group close next week. It is open for precollege students with a grade-6 or equivalent education. Examinations to select 25-30 successful candidates will be held on October 7 and 10 at examination centres in Roi Et province and Bangkok.
Instead of studying at Samut Prakan Technical College, the third group will attend Theerabhada Technology Vocational College in Roi Et, which opens on October 20. The change follows realisation that most of the successful students are coming from the North and Northeast of the country.
"We think this is a good way to pay society back [for our success], because if we create educational opportunities and jobs for poor people, they can create quality of living for both themselves and their family after they graduate," Kajohndet said.
SCG Distribution's president Kajohndet Sangsuban said the programme, run in cooperation with Samut Prakan Technical College, had already produced 63 students and some of them were now working for SCG.
With an annual budget of Bt3 million, the programme targets mainly those who want to pursue careers in construction-material distribution centres, mainly Home Mart, which is an SCG business unit.
Kajohndet said the programme was open to students from around the country. However, SCG's management selected candidates by interview only.
"Our criteria involve the students'family incomes. That is our first priority in selecting students to receive the scholarship. Then we will look at their study profile. We want to give poor students the opportunity for education and a job," he said.
The company pays all of the expenses for a two-year course for successful candidates, averaging Bt100,000 per person per year.
Apinya Todmuang, 20, from Chiang Mai, said she decided to join the programme in 2007 because it met all of her expenses and was also a non-binding scholarship. Winning a scholarship helped her family by cutting her study costs. When she graduated, she was guaranteed a job with a good income of Bt7,000 per month. Apinya now works at a Home Mart distribution centre in Nakhon Pathom province.
Another successful graduate, Winai Jaroenwong, 22, came from Nakhom Phanom province to win an SCG scholarship. He now works at Home Mart Bang Na, with a salary of about Bt8,000 per month.
"I applied for this programme because I believed that when I graduated, I could find a job and help my family to have a better-quality life. This programme gave me an education and a job opportunity," he said.
Under the programme, SCG and the college give the students the knowledge and the experience to join the staff of a construction-materials distribution centre. They spend six months at college lectures, followed by six months on-the-job training at a Home Mart store, for a total of two years'study.
When they graduate, they can seek a job with Home Mart, but they are also free to do anything they want.
"This is a non-binding scholarship," Kajohndet said. However, graduates get better opportunities than other students because they hold both a college certificate and an SCG certificate for having passed through the Home Mart Career Choice programme.
Thirty-two students graduated from the programme's first year. Of these, 31 now work at Home Mart distribution centres.
The second group, totalling 31 students, will graduate next year.
Applications for the third group close next week. It is open for precollege students with a grade-6 or equivalent education. Examinations to select 25-30 successful candidates will be held on October 7 and 10 at examination centres in Roi Et province and Bangkok.
Instead of studying at Samut Prakan Technical College, the third group will attend Theerabhada Technology Vocational College in Roi Et, which opens on October 20. The change follows realisation that most of the successful students are coming from the North and Northeast of the country.
"We think this is a good way to pay society back [for our success], because if we create educational opportunities and jobs for poor people, they can create quality of living for both themselves and their family after they graduate," Kajohndet said.
Waitrose to add 300 outlets
The upmarket British grocer Waitrose is planning a big expansion into convenience stores which could eventually see the fast-growing chain add another 300 outlets, more than doubling its current number of stores.
The move is a direct challenge to Marks & Spencer's Simply Food convenience chain and will also increase competition for big supermarket groups like Tesco,J Sainsbury and Wm Morrison, all of which are rapidly expanding into smaller store formats.
Waitrose, part of the employee-owned John Lewis Partnership, said yesterday that 6.5 million potential customers were currently unable to easily access one of its stores.
To reach them, it plans to expand in part via partnerships.
The chain, which currently has 215 branches, will extend two trial outlets at motorway service stations owned by Welcome Break to a further nine sites.
It is also in talks with health and beauty retailer Boots over a trial to sell a small number of product ranges in each other's stores.
In addition, Waitrose, which has been opening smaller stores of about 5,000 to 7,000 square feet in size, plans to trial convenience shops of 2,000 to 4.000 square feet next year.
"This move gives Waitrose an overall potential for 300 convenience branches,"it said in a statement.
The move is a direct challenge to Marks & Spencer's Simply Food convenience chain and will also increase competition for big supermarket groups like Tesco,J Sainsbury and Wm Morrison, all of which are rapidly expanding into smaller store formats.
Waitrose, part of the employee-owned John Lewis Partnership, said yesterday that 6.5 million potential customers were currently unable to easily access one of its stores.
To reach them, it plans to expand in part via partnerships.
The chain, which currently has 215 branches, will extend two trial outlets at motorway service stations owned by Welcome Break to a further nine sites.
It is also in talks with health and beauty retailer Boots over a trial to sell a small number of product ranges in each other's stores.
In addition, Waitrose, which has been opening smaller stores of about 5,000 to 7,000 square feet in size, plans to trial convenience shops of 2,000 to 4.000 square feet next year.
"This move gives Waitrose an overall potential for 300 convenience branches,"it said in a statement.
Thursday, September 24, 2009
Carrefour issues member cards
CenCar Co, the local operator of Carrefour hypermarkets, is stepping up its customer loyalty and retention programmes to better compete with rivals Tesco Lotus and Big C.
The launch of membership cards by major retail players has intensified in recent years.
Central Retail Corporation pioneered the innovation locally with the introduction of by Tops Supermarket's Spot Rewards in June 2004 followed by The 1 Card for the other CRC brands in 2006 ago.
Carrefour introduced its I Wish card in 2007. The Mall Group started its M Card loyalty programme earlier this year.A fewmonths later Tesco Lotus and Big C Supercenter introduced the Club Card and Big Card, respectively.
CenCar initially planned to spend 140-150 million baht to promote sales in the fourth quarter, said merchandising director Prapaphan Ploysaengngam. But,almost one-third of the budget, or 50 million baht, will now be allocated to the Carrefour Month 2009 campaign which runs from tomorrow until Oct 29.
The promotion offers I Wish cardholders discounts between 3% to 100%on their next purchase at 37 stores nationwide.
Apart from giving discounts, all vendors at Carrefour shopping centres will for the first time join a campaign and offer giveaways and promotional items to shoppers."It is difficult to draw new customers to shop at our stores and it is more difficult to retain our existing customers particularly when the economy is weak," Ms Prapaphan said.
Currently, CenCar has 1.6 million I Wish cardholders and expects the figure to rise to 2 million members by the year-end. Of the 1.6 million members,about 60% are active and spend an average 800 baht per shopping trip.
With the new campaign, CenCar expects to boost the number of loyal customers to 70%, up from current 60%.
For its expansion plan, the company will officially open its 37th Carrefour branch in Lop Buri today. Two outlets will be opened in Lam Luk Ka, Pathum Thani next month and in Chumphon province in December, increasing the total store count to 39 by the year-end.
Combined, the three new stores will cost 1.5 billion baht and hire 600 new jobs. Each outlet has 6,000 square metres of retail space.
The launch of membership cards by major retail players has intensified in recent years.
Central Retail Corporation pioneered the innovation locally with the introduction of by Tops Supermarket's Spot Rewards in June 2004 followed by The 1 Card for the other CRC brands in 2006 ago.
Carrefour introduced its I Wish card in 2007. The Mall Group started its M Card loyalty programme earlier this year.A fewmonths later Tesco Lotus and Big C Supercenter introduced the Club Card and Big Card, respectively.
CenCar initially planned to spend 140-150 million baht to promote sales in the fourth quarter, said merchandising director Prapaphan Ploysaengngam. But,almost one-third of the budget, or 50 million baht, will now be allocated to the Carrefour Month 2009 campaign which runs from tomorrow until Oct 29.
The promotion offers I Wish cardholders discounts between 3% to 100%on their next purchase at 37 stores nationwide.
Apart from giving discounts, all vendors at Carrefour shopping centres will for the first time join a campaign and offer giveaways and promotional items to shoppers."It is difficult to draw new customers to shop at our stores and it is more difficult to retain our existing customers particularly when the economy is weak," Ms Prapaphan said.
Currently, CenCar has 1.6 million I Wish cardholders and expects the figure to rise to 2 million members by the year-end. Of the 1.6 million members,about 60% are active and spend an average 800 baht per shopping trip.
With the new campaign, CenCar expects to boost the number of loyal customers to 70%, up from current 60%.
For its expansion plan, the company will officially open its 37th Carrefour branch in Lop Buri today. Two outlets will be opened in Lam Luk Ka, Pathum Thani next month and in Chumphon province in December, increasing the total store count to 39 by the year-end.
Combined, the three new stores will cost 1.5 billion baht and hire 600 new jobs. Each outlet has 6,000 square metres of retail space.
Tuesday, September 22, 2009
Snack-maker UM to open more stores at PTT stations
UM Tridaughter Sweet (UM), the maker and franchiser of Kanom Baan Ayakarn Thai Cake snacks, has opted to expand its network of outlets to PTT petrol stations, rather than shopping malls, in a bid to tap more families.
UM director Nuttaya Sawatpoon said the company has 23 Kanom Baan Ayakarn shops in shopping malls, which should be enough to serve that market. It has decided to focus more on opening shops in new types of locations. Petrol stations are seen as a way of expanding into the family market.
"Consumers in the family segment shop at convenience stores, bakery shops and coffee shops when the family vehicle is filled up at the petrol station," Nuttaya said. Moreover, the rents at petrol stations are not high, she said.Kanom Baan Ayakarn already has three shops at PTT petrol stations. Newer PTT-based outlets would be smaller than these, however.
The company believes the expansion into PTT's petrol stations will boost its revenue to Bt150 million next year, from an expected Bt100 million this year.
The sweet-maker is following the example of Siam Hands, the maker of Tangmo-brand apparel, which recently began opening shops at PTT petrol stations, believing the network of 1,400 stations nationwide, and the purchasing power of its customers, could help boost its profits.
Nuttaya said UM will open five shops in the fourth quarter of this year, four of which will be located at PTT stations. The plan is expected to require investment of at least Bt500,000 per PTT shop.
The fifth shop is a franchise in Hat Yai, Songkhla.
Nuttaya said the five new shops are expected to offset a decline in sales in the second quarter.
"We need to be aggressive in opening new shops, as the domestic economy is improving. This year the company targets sales of Bt100 million, up from Bt97 million last year," she said. The company will have 38 shops by the end of this year, up from 33 at present. Five of the shops are run by franchisees. The rest are UM's own shops.
Nuttaya said the company plans to open at least 10 new franchise stores next year.
Expansion through franchisees is expected to grow, she said, adding that the company is in negotiations with investors in Nakhon Pathom, Ayutthaya and Suphan Buri.
UM director Nuttaya Sawatpoon said the company has 23 Kanom Baan Ayakarn shops in shopping malls, which should be enough to serve that market. It has decided to focus more on opening shops in new types of locations. Petrol stations are seen as a way of expanding into the family market.
"Consumers in the family segment shop at convenience stores, bakery shops and coffee shops when the family vehicle is filled up at the petrol station," Nuttaya said. Moreover, the rents at petrol stations are not high, she said.Kanom Baan Ayakarn already has three shops at PTT petrol stations. Newer PTT-based outlets would be smaller than these, however.
The company believes the expansion into PTT's petrol stations will boost its revenue to Bt150 million next year, from an expected Bt100 million this year.
The sweet-maker is following the example of Siam Hands, the maker of Tangmo-brand apparel, which recently began opening shops at PTT petrol stations, believing the network of 1,400 stations nationwide, and the purchasing power of its customers, could help boost its profits.
Nuttaya said UM will open five shops in the fourth quarter of this year, four of which will be located at PTT stations. The plan is expected to require investment of at least Bt500,000 per PTT shop.
The fifth shop is a franchise in Hat Yai, Songkhla.
Nuttaya said the five new shops are expected to offset a decline in sales in the second quarter.
"We need to be aggressive in opening new shops, as the domestic economy is improving. This year the company targets sales of Bt100 million, up from Bt97 million last year," she said. The company will have 38 shops by the end of this year, up from 33 at present. Five of the shops are run by franchisees. The rest are UM's own shops.
Nuttaya said the company plans to open at least 10 new franchise stores next year.
Expansion through franchisees is expected to grow, she said, adding that the company is in negotiations with investors in Nakhon Pathom, Ayutthaya and Suphan Buri.
Long-stalled retail draft gets new life
Despite growing scepticism over how long it will manage to stay in the office,the government vows to move ahead with plans to revise the long-delayed Retail and Wholesale Act, vowing to finalise the draft and bring it for parliamentary debate within three months.
Prime Minister Abhisit Vejjajiva recently directed Kiat Sittheeamorn, head of the Thailand Trade Representative office, to chair the working panel to speed up revising the act.
The revision, which takes also into account international practices, and public hearings are expected to be completed in October or November and parliamentary debate is likely in December or early next year.
The Commerce Ministry began public hearings on the new law last Friday and plans to organise eight more hearings over the next two months.The hearings are aimed at ensuring fair conditions for businesses covered under the law and preventing any conflicts following implementation.
The hearings will focus on four main points: types of businesses to be controlled, the agency authorised to approve new businesses, support for small retailers, and punishment of violators.
According to Mr Kiat, the new draft would be based on the principles that allow both traditional family shops and large modern-trade operators to coexist.
New modern-trade stores must be located in suburban areas, while existing operators in crowded areas may be required to close at 5 pm for two or three days a week, he said.
In a bid to enable small family outlets to stay competitive, the government may provide experts to give them suggestions on how to improve their services, while the new law also needs to set guidelines on the size of moderntrade outlets.
Mr Kiat, said the law also needed to promote fair dealing between moderntrade operators and suppliers and promote Thai entrepreneurs to develop their own brands.
A Commerce Ministry source said the act was likely to pass if the Abhisit government remained in office until next year.
The long-awaited retail industry regulations have moved at a snail's pace despite calls by small operators for the past decade for legislation to regulate the rapid growth of hypermarkets, chain convenience stores and other large operators.
Critics say that the Interior Ministry's current urban planning and building codes are not adequate for the changed business environment, in which chains are squeezing out family businesses.
The new law did not win support during the Thaksin Shinawatra administration. Even when it was approved by the Surayud Chulanont government,the National Legislative Assembly sent the draft back.
Under the current draft, which focuses on protecting local retail businesses, existing giant retailers can expand but must comply with new regulations - restricting operating hours,size and proximity to city centres - to leave room for small players.
Prime Minister Abhisit Vejjajiva recently directed Kiat Sittheeamorn, head of the Thailand Trade Representative office, to chair the working panel to speed up revising the act.
The revision, which takes also into account international practices, and public hearings are expected to be completed in October or November and parliamentary debate is likely in December or early next year.
The Commerce Ministry began public hearings on the new law last Friday and plans to organise eight more hearings over the next two months.The hearings are aimed at ensuring fair conditions for businesses covered under the law and preventing any conflicts following implementation.
The hearings will focus on four main points: types of businesses to be controlled, the agency authorised to approve new businesses, support for small retailers, and punishment of violators.
According to Mr Kiat, the new draft would be based on the principles that allow both traditional family shops and large modern-trade operators to coexist.
New modern-trade stores must be located in suburban areas, while existing operators in crowded areas may be required to close at 5 pm for two or three days a week, he said.
In a bid to enable small family outlets to stay competitive, the government may provide experts to give them suggestions on how to improve their services, while the new law also needs to set guidelines on the size of moderntrade outlets.
Mr Kiat, said the law also needed to promote fair dealing between moderntrade operators and suppliers and promote Thai entrepreneurs to develop their own brands.
A Commerce Ministry source said the act was likely to pass if the Abhisit government remained in office until next year.
The long-awaited retail industry regulations have moved at a snail's pace despite calls by small operators for the past decade for legislation to regulate the rapid growth of hypermarkets, chain convenience stores and other large operators.
Critics say that the Interior Ministry's current urban planning and building codes are not adequate for the changed business environment, in which chains are squeezing out family businesses.
The new law did not win support during the Thaksin Shinawatra administration. Even when it was approved by the Surayud Chulanont government,the National Legislative Assembly sent the draft back.
Under the current draft, which focuses on protecting local retail businesses, existing giant retailers can expand but must comply with new regulations - restricting operating hours,size and proximity to city centres - to leave room for small players.
Sunday, September 20, 2009
CANALSIDE MARKET A MAGNET FOR URBANITES
For the past five years the spacious grounds along the banks of Khlong Lad Mayom have served as a weekend getaway for numerous day-trippers looking for the taste and feel of old Thailand.
Every Saturday and Sunday at Khlong Lad Mayom, locals gather in small boats and canalside stalls with a wide variety of fresh homegrown produces and mouth-watering delicacies to pamper visitors' taste buds. These include herbal beverages, sweets and an endless array of traditional Thai dishes whose recipes have been handed down from generation to generation.
Credit for this weekend success story must be given to the determined initiative of the Khlong Lad Mayom community leader, Chuan Chuchan, a senior resident whose desire to preserve the canalside community led him to establish the floating market as a way to maintain the neighbourhood's unpretentious natural features and traditional way of life.
Mr Chuan saw that the peaceful atmosphere and shady surroundings serve to detach the waterside location from the regular bustle of city life, and envisioned Khlong Lad Mayom as a magnet to draw all breeds of travellers away from the stark urban landscape into an idyllic bygone era.
The development of cultural tourism was implemented as a conservation strategy as well as an economic initiative. In turning the waterway into a secondary source of income for locals, Mr Chuan believed that the floating market would also create a focal point to strengthen community harmony as well as contribute significantly to a sense of ownership and homeland pride.
His notion has ultimately proved to be beneficial to a growing number of locals. The once modest floating market has been gradually enlarged and expanded to cover a wide stretch of land on both sides of Bang Ramad Road, and witnesses a continual flow of tourists.
Apart from the local culinary delights, rental boats are available to access an extensive network of navigable waterways. Winding through orchards and farms dotted with houses and sites of historical importance, visitors are provided with a glimpse into the charming old way of life along the canal. There are tours of the attractions adjacent to the market lasting an hour or two, or a half-day passage can be booked to view popular sightseeing spots further out which are connected to the Khlong Lad Mayom community via the canal system.
The Khlong Lad Mayom market might still be overshadowed by some of the more famous floating tourist hubs in the city, but its relaxing ambience definitely holds the promise of a great and enjoyable escape.
Every Saturday and Sunday at Khlong Lad Mayom, locals gather in small boats and canalside stalls with a wide variety of fresh homegrown produces and mouth-watering delicacies to pamper visitors' taste buds. These include herbal beverages, sweets and an endless array of traditional Thai dishes whose recipes have been handed down from generation to generation.
Credit for this weekend success story must be given to the determined initiative of the Khlong Lad Mayom community leader, Chuan Chuchan, a senior resident whose desire to preserve the canalside community led him to establish the floating market as a way to maintain the neighbourhood's unpretentious natural features and traditional way of life.
Mr Chuan saw that the peaceful atmosphere and shady surroundings serve to detach the waterside location from the regular bustle of city life, and envisioned Khlong Lad Mayom as a magnet to draw all breeds of travellers away from the stark urban landscape into an idyllic bygone era.
The development of cultural tourism was implemented as a conservation strategy as well as an economic initiative. In turning the waterway into a secondary source of income for locals, Mr Chuan believed that the floating market would also create a focal point to strengthen community harmony as well as contribute significantly to a sense of ownership and homeland pride.
His notion has ultimately proved to be beneficial to a growing number of locals. The once modest floating market has been gradually enlarged and expanded to cover a wide stretch of land on both sides of Bang Ramad Road, and witnesses a continual flow of tourists.
Apart from the local culinary delights, rental boats are available to access an extensive network of navigable waterways. Winding through orchards and farms dotted with houses and sites of historical importance, visitors are provided with a glimpse into the charming old way of life along the canal. There are tours of the attractions adjacent to the market lasting an hour or two, or a half-day passage can be booked to view popular sightseeing spots further out which are connected to the Khlong Lad Mayom community via the canal system.
The Khlong Lad Mayom market might still be overshadowed by some of the more famous floating tourist hubs in the city, but its relaxing ambience definitely holds the promise of a great and enjoyable escape.
All the best of Japanese luck
Loft, the Japan-based chain,has just blown out the candles on its 12th-burtgdat cake and come up with a fresh collection of decorative items, gifts and stationery that capture the cultural charms of the Land of the Rising Sun.
Auspicious animals roam the new line, promising to bring good fortune. There's the lucky cat Maneki Neko Sekiguchi the monkey and a turtle and owl, all in vivid colours.
Teens who love flowers and manga will find the beautiful Sakura and pouplar Totoro cartoon characters.
There are Daruma Piggy banks, bubble-head Daruma dolls, Oni devil masks, Totoro music boxes and Tamagotchi electronic pets, plus key rings, luck cat calendadrs, comfy cushions and ceramic ware painted by celebrated artist Shinzi Katoh.
You can also get pink lunchboxes with chopsticks,Sakura notebooks and cosmetics cases and cardholders and notebooks made from printed Japanese textile.
Auspicious animals roam the new line, promising to bring good fortune. There's the lucky cat Maneki Neko Sekiguchi the monkey and a turtle and owl, all in vivid colours.
Teens who love flowers and manga will find the beautiful Sakura and pouplar Totoro cartoon characters.
There are Daruma Piggy banks, bubble-head Daruma dolls, Oni devil masks, Totoro music boxes and Tamagotchi electronic pets, plus key rings, luck cat calendadrs, comfy cushions and ceramic ware painted by celebrated artist Shinzi Katoh.
You can also get pink lunchboxes with chopsticks,Sakura notebooks and cosmetics cases and cardholders and notebooks made from printed Japanese textile.
Giant foreign retailers taking over a lot of land, seminar hears from concerned Thais
Thais have lost their land ownership for expanding businesses and farm areas to foreign investors due to vast expansion by giant retailers, representatives at a seminar on the Retail and Wholesale Business Act (RBA) said.
Speaking at the seminar yesterday on 'Retail Act: the Regulations in Capitalism and the Globalisation', organised by the Internal Trade Department, panelists voiced concern that foreign modern traders have occupied plenty of land to boost their business nationwide.
They said that foreign retailers now have ownership over larger amounts of land through their outlets nationwide. They have the ownership right due to the lack of a specific law to block their expansion.
Wichian Tangtumsatid, president of the Association for the Protection of Thai Occupation, said the expansion of large superstore chains have not only harmed small retailers, but also led to Thais losing their land for doing business and farming.
"People are not aware that they have lost tens of thousands of rai to modern retailers. Farmers now have lower plantation areas due to wide expansion of modern retailers into small communities," he said.
According to the commercial commission, there are about 680,000 small retailers and 125,000 fresh markets currently in Thailand. So far, some 20.7 million people are involved in the retail business, including owners, suppliers, employees, and family members of traditional retail businesses.
Retail and wholesale business is currently worth Bt1.4 trillion. The sector accounts for 15 per cent of Gross Domestic Product. Of these, foreign investors, or the top five modern retail operators have enjoyed more than 50 per cent market share of the business.
The association said giant retail businesses have expanded 90 to 100 per cent in the past 10 years, while the retail business has generally expanded by only 70 per cent during the same period.
The association plans to propose its own draft for effectively controlling giant retailers' expansion in the country.
Under the new draft from the people's side, it will specify that each retail or wholesale firm must not have a combined land of over 100,000 square metres. The draft law is expected to be completed in November this year for the government's consideration in line with the Commerce Ministry's draft.
In addition, Thai retailers have called for the government to enact the Ministry Regulation for halting expansion of modern stores ahead of the retail act.
Somchai Pornratanacharoen, president of the Association of Thai Wholesaling and Retailing, said the government must urgently announce temporary measures to stop large retailers from establishing new stores as they already have too many stores.
"Thai small retailers have long suffered from the vast expansion of modern retailers. The government must ensure that during the vacuum period, small retailers will survive," Somchai said.
Commerce Minister Porntiva Nakasai said that she could not assure when the retail act will be implemented. However, the current government has a clear policy to support the act's implementation to ensure a level playing field in the industry.
Speaking at the seminar yesterday on 'Retail Act: the Regulations in Capitalism and the Globalisation', organised by the Internal Trade Department, panelists voiced concern that foreign modern traders have occupied plenty of land to boost their business nationwide.
They said that foreign retailers now have ownership over larger amounts of land through their outlets nationwide. They have the ownership right due to the lack of a specific law to block their expansion.
Wichian Tangtumsatid, president of the Association for the Protection of Thai Occupation, said the expansion of large superstore chains have not only harmed small retailers, but also led to Thais losing their land for doing business and farming.
"People are not aware that they have lost tens of thousands of rai to modern retailers. Farmers now have lower plantation areas due to wide expansion of modern retailers into small communities," he said.
According to the commercial commission, there are about 680,000 small retailers and 125,000 fresh markets currently in Thailand. So far, some 20.7 million people are involved in the retail business, including owners, suppliers, employees, and family members of traditional retail businesses.
Retail and wholesale business is currently worth Bt1.4 trillion. The sector accounts for 15 per cent of Gross Domestic Product. Of these, foreign investors, or the top five modern retail operators have enjoyed more than 50 per cent market share of the business.
The association said giant retail businesses have expanded 90 to 100 per cent in the past 10 years, while the retail business has generally expanded by only 70 per cent during the same period.
The association plans to propose its own draft for effectively controlling giant retailers' expansion in the country.
Under the new draft from the people's side, it will specify that each retail or wholesale firm must not have a combined land of over 100,000 square metres. The draft law is expected to be completed in November this year for the government's consideration in line with the Commerce Ministry's draft.
In addition, Thai retailers have called for the government to enact the Ministry Regulation for halting expansion of modern stores ahead of the retail act.
Somchai Pornratanacharoen, president of the Association of Thai Wholesaling and Retailing, said the government must urgently announce temporary measures to stop large retailers from establishing new stores as they already have too many stores.
"Thai small retailers have long suffered from the vast expansion of modern retailers. The government must ensure that during the vacuum period, small retailers will survive," Somchai said.
Commerce Minister Porntiva Nakasai said that she could not assure when the retail act will be implemented. However, the current government has a clear policy to support the act's implementation to ensure a level playing field in the industry.
Wednesday, September 16, 2009
CENTRAL FOOD TO SUPPLY JIFFY STORES
Central Food Retail (CFR) will supply products and back-office support to 146 Jiffy convenience stores throughout the country under an agreement with PTT Retail Management (PTTRM), the subsidiary of PTT, which operates the convenience stores.
Under the partnership, about 60 per cent of 4,500 products will be supplied and managed by CFR. The company will also introduce fresh products at Jiffy stores in the near future. As a business unit of Central Retail Corporation (CRC), CFR now operates Central Food Hall, Tops Market, Tops Super and Tops Daily brands.
Dr Krisanapol Komolboon, managing director of PTTRM, said the move is in line with PTT's strategy to promote high-margin non-oil businesses, including Jiffy convenience stores, and Cafe Amazon coffee houses.
Krisanapol said PTT planned to increase the ratio of non-oil businesses from between 15 per cent and 20 per cent at present to at least 30 per cent in the next two to three years.
"We [PTTRM] and Central Retail share the same goal of fulfilling customers' needs with a wide range of goods and services, ensuring the right product at the right time in the right quality at the right place," he said.
PTTRM itself would invest about Bt2 billion over the next two years to improve the back-office system and the expansion of PTT Platinum gas stations, which have been recognised as premium brand for good service quality. About Bt400 million will be invested next year in the installation of a new IT-based Retail Automation System.
"We have already opened three new PTT Platinum gas stations this year at Kang Koi off Saraburi, Rama II Road, and Wang Noi off Ayutthaya. Another seven Platinum stations will be opened next year," said Krisanapol.
He said the company has used the CVX distribution service since June 2007 after acquiring the entire network of JET gas stations, including the Jiffy business from ConocoPhillips.
PTTRM also owns the local licences for Jiffy convenience stores in six markets - Cambodia, Laos, Singapore, the Philippines, Indonesia and Vietnam. PTT operates gas stations in Cambodia, Laos and the Philippines.
The transition to CFR's logistics and supply-chain management services began in March last year and was completed last month, when the Service Level Agreement (SLA), which measures consistency in supplying products to Jiffy stores, increased significantly from 93 per cent to 98 per cent. The average sales at Jiffy stores increased from Bt2.1 million per store per month to Bt2.26 million per store per month.
Central Marketing Group (CMG), CRC's trading and marketing unit, will soon open its retail shops for branded apparels at some PTT gas stations, particularly in tourist destinations.
Tos Chirathivat, CRC chief executive officer, said the partnership with PTTRM reflects the company's key strategic policy in expanding its retail businesses, not just through organic expansion but also through partnership.
"The partnership agreement also shows our great working capability in supporting partners and to create win-win situations," said Tos.
Under the partnership, about 60 per cent of 4,500 products will be supplied and managed by CFR. The company will also introduce fresh products at Jiffy stores in the near future. As a business unit of Central Retail Corporation (CRC), CFR now operates Central Food Hall, Tops Market, Tops Super and Tops Daily brands.
Dr Krisanapol Komolboon, managing director of PTTRM, said the move is in line with PTT's strategy to promote high-margin non-oil businesses, including Jiffy convenience stores, and Cafe Amazon coffee houses.
Krisanapol said PTT planned to increase the ratio of non-oil businesses from between 15 per cent and 20 per cent at present to at least 30 per cent in the next two to three years.
"We [PTTRM] and Central Retail share the same goal of fulfilling customers' needs with a wide range of goods and services, ensuring the right product at the right time in the right quality at the right place," he said.
PTTRM itself would invest about Bt2 billion over the next two years to improve the back-office system and the expansion of PTT Platinum gas stations, which have been recognised as premium brand for good service quality. About Bt400 million will be invested next year in the installation of a new IT-based Retail Automation System.
"We have already opened three new PTT Platinum gas stations this year at Kang Koi off Saraburi, Rama II Road, and Wang Noi off Ayutthaya. Another seven Platinum stations will be opened next year," said Krisanapol.
He said the company has used the CVX distribution service since June 2007 after acquiring the entire network of JET gas stations, including the Jiffy business from ConocoPhillips.
PTTRM also owns the local licences for Jiffy convenience stores in six markets - Cambodia, Laos, Singapore, the Philippines, Indonesia and Vietnam. PTT operates gas stations in Cambodia, Laos and the Philippines.
The transition to CFR's logistics and supply-chain management services began in March last year and was completed last month, when the Service Level Agreement (SLA), which measures consistency in supplying products to Jiffy stores, increased significantly from 93 per cent to 98 per cent. The average sales at Jiffy stores increased from Bt2.1 million per store per month to Bt2.26 million per store per month.
Central Marketing Group (CMG), CRC's trading and marketing unit, will soon open its retail shops for branded apparels at some PTT gas stations, particularly in tourist destinations.
Tos Chirathivat, CRC chief executive officer, said the partnership with PTTRM reflects the company's key strategic policy in expanding its retail businesses, not just through organic expansion but also through partnership.
"The partnership agreement also shows our great working capability in supporting partners and to create win-win situations," said Tos.
CP ALL TO INCREASE NUMBER OF 7-ELEVENS
CP All, the operator of 7-Eleven convenience stores, is planning to increase the number of franchised stores to 60 per cent within five years.
Managing director Piyawat Titasattavorakul said yesterday that franchised stores showed higher margins than the company's own stores, because they are run by individual entrepreneurs for whom efficiency and returns are the top priority. The plan is also in line with the company's policy to create more entrepreneurs.
At present, the number of 7-Eleven stores exceeds 5,000, with 2,344 or 45 per cent being run by franchisees. The company wants the proportion of franchised stores to increase by 3 per cent per annum.
"Ninety per cent of stores in countries like Japan and the United State is run by franchisees. We would like to do the same. CP All plans to only operate 3,000 branches and franchise the rest," he said.
Anittha Thanamit, assistant managing director, said that to support this policy CP All would have to offer franchisees more attractive returns.
At present, CP All offers two franchising models. In the first model, franchisees have to invest Bt1.5 million per branch, of which Bt500,000 will be spent on franchising fees and store decoration, with the remaining Bt1 million held back as a deposit that will be returned to franchisees if they want to bow out.
The second model requires an investment of Bt2.65 million per branch, of which Bt900,000 is put aside as a deposit guarantee and the remaining Bt1.75 million spent on franchising fees, store decoration and management.
Under the second model, CP All promises that investors can breakeven within three years.
Aside from the expansion of franchised stores, CP All is also planning to get 7-Eleven stores to focus more on food and beverages.
Piyawat said consumer goods generated a margin of around 10 per cent, while foods and drinks roughly 20 per cent. Besides, some of the food and drink items sold in 7-Eleven are produced by the Charoen Pokphand Group, CP All's parents company.
He added that at present 80 per cent of the products sold in 7-Eleven were edibles, and the firm plans to increase this proportion to 85:15 in the next three years.
Managing director Piyawat Titasattavorakul said yesterday that franchised stores showed higher margins than the company's own stores, because they are run by individual entrepreneurs for whom efficiency and returns are the top priority. The plan is also in line with the company's policy to create more entrepreneurs.
At present, the number of 7-Eleven stores exceeds 5,000, with 2,344 or 45 per cent being run by franchisees. The company wants the proportion of franchised stores to increase by 3 per cent per annum.
"Ninety per cent of stores in countries like Japan and the United State is run by franchisees. We would like to do the same. CP All plans to only operate 3,000 branches and franchise the rest," he said.
Anittha Thanamit, assistant managing director, said that to support this policy CP All would have to offer franchisees more attractive returns.
At present, CP All offers two franchising models. In the first model, franchisees have to invest Bt1.5 million per branch, of which Bt500,000 will be spent on franchising fees and store decoration, with the remaining Bt1 million held back as a deposit that will be returned to franchisees if they want to bow out.
The second model requires an investment of Bt2.65 million per branch, of which Bt900,000 is put aside as a deposit guarantee and the remaining Bt1.75 million spent on franchising fees, store decoration and management.
Under the second model, CP All promises that investors can breakeven within three years.
Aside from the expansion of franchised stores, CP All is also planning to get 7-Eleven stores to focus more on food and beverages.
Piyawat said consumer goods generated a margin of around 10 per cent, while foods and drinks roughly 20 per cent. Besides, some of the food and drink items sold in 7-Eleven are produced by the Charoen Pokphand Group, CP All's parents company.
He added that at present 80 per cent of the products sold in 7-Eleven were edibles, and the firm plans to increase this proportion to 85:15 in the next three years.
7-Eleven keen on replacing Jiffy stores
CP All Plc, the operator of the 7-Eleven convenience store chain, is negotiating with PTT Plc to open retail outlets at all of the retail fuel market leader's service stations.
Piyawat Titasattavorakul, the president of CP All, said the company was in talks with PTT to change the existing Jiffy stores - operated by PTT Retail Management - into 7-Eleven outlets.
The move is aimed at driving CP All's long-term business growth, he said.
CP All operates 7-Eleven, Book Smile,and X-ta, a health and beauty store.
"We expect to conclude the business deal with PTT in three months," he said.
Mr Piyawat said the company would continue to expand its convenience store business but the new stores would be opened on a franchise basis rather than through its own investment.
The company plans to increase the proportion of 7-Eleven franchised stores to 60% of the total in the next five years,from the 46% planned for the year-end.
CP All expects to have 5,200 convenience stores by the year-end.
"We believe franchisees can better control operating costs, so they will create more sales and profits for us," he said.
Currently,90% of 7-Eleven convenience stores in Japan and 80% in the US are operated by franchisees.
CP All shares closed yesterday on the SET at 18.40 baht, up 40 satang, in trade worth 141.77 million baht.
Piyawat Titasattavorakul, the president of CP All, said the company was in talks with PTT to change the existing Jiffy stores - operated by PTT Retail Management - into 7-Eleven outlets.
The move is aimed at driving CP All's long-term business growth, he said.
CP All operates 7-Eleven, Book Smile,and X-ta, a health and beauty store.
"We expect to conclude the business deal with PTT in three months," he said.
Mr Piyawat said the company would continue to expand its convenience store business but the new stores would be opened on a franchise basis rather than through its own investment.
The company plans to increase the proportion of 7-Eleven franchised stores to 60% of the total in the next five years,from the 46% planned for the year-end.
CP All expects to have 5,200 convenience stores by the year-end.
"We believe franchisees can better control operating costs, so they will create more sales and profits for us," he said.
Currently,90% of 7-Eleven convenience stores in Japan and 80% in the US are operated by franchisees.
CP All shares closed yesterday on the SET at 18.40 baht, up 40 satang, in trade worth 141.77 million baht.
Central to supply Jiffy store
Central Retail Corporation, the country's leading retail chain, has signed an agreement on purchasing and product supply with PTT Retail Management (PTTRM),the operator of Jiffy convenience stores,to open a new market frontier and expand business in the future.
Tos Chirathivat, CEO of CRC, said the partnership with PTTRM reflected its key strategy to expand its retail business through partnerships with strong companies.
Central Food Retail (CFR), a CRC business unit and the operator of Tops supermarkets, will be responsible for the purchase and supply of a wide range of consumer products to all existing 146 Jiffy stores and future expansion in PTT gas stations nationwide.
Under the three-year agreement, CFR will purchase and supply 60% of the 4,500 products available at Jiffy stores,which are valued at 2.3 billion baht per year. The strategic supply chain partnership supports the future growth of Jiffy. CFR will also supply and manage fresh products in the near future.
Krisanapol Komolboon, managing director of PTTRM, said both firms shared the same goal of fulfilling customer needs with a wide range of goods and services.PTTRM used the CVX distribution service before this agreement."With the partnership with CRC, sales from highmargin, non-oil businesses, including Jiffy stores and Cafe' Amazon coffee houses, will contribute at least 30% to PTT, the parent firm of PTTRM, in the next two to three years, up from 15-20%currently," he said.
Dr Krisanapol said the Service Level Agreement (SLA), which measures consistency in supplying products to Jiffy stores, increased significantly from 93%to 98% at present. Also, sales per Jiffy store increased to 2.26 million baht per month from 2.1 million earlier.
Apart from forming a business partnership with CRC, PTTRM will team up with Central Marketing Group, a fashion distribution arm under the Central Group of Companies, to open fashion shops at PTT stations in tourist destinations.
PTTRM itself would invest about 2 billion baht between this and next year to improve the front and back-office system, expanding the PTT Platinum station concept that was recognised as a premium brand for its good service quality and operating expense control.
Tos Chirathivat, CEO of CRC, said the partnership with PTTRM reflected its key strategy to expand its retail business through partnerships with strong companies.
Central Food Retail (CFR), a CRC business unit and the operator of Tops supermarkets, will be responsible for the purchase and supply of a wide range of consumer products to all existing 146 Jiffy stores and future expansion in PTT gas stations nationwide.
Under the three-year agreement, CFR will purchase and supply 60% of the 4,500 products available at Jiffy stores,which are valued at 2.3 billion baht per year. The strategic supply chain partnership supports the future growth of Jiffy. CFR will also supply and manage fresh products in the near future.
Krisanapol Komolboon, managing director of PTTRM, said both firms shared the same goal of fulfilling customer needs with a wide range of goods and services.PTTRM used the CVX distribution service before this agreement."With the partnership with CRC, sales from highmargin, non-oil businesses, including Jiffy stores and Cafe' Amazon coffee houses, will contribute at least 30% to PTT, the parent firm of PTTRM, in the next two to three years, up from 15-20%currently," he said.
Dr Krisanapol said the Service Level Agreement (SLA), which measures consistency in supplying products to Jiffy stores, increased significantly from 93%to 98% at present. Also, sales per Jiffy store increased to 2.26 million baht per month from 2.1 million earlier.
Apart from forming a business partnership with CRC, PTTRM will team up with Central Marketing Group, a fashion distribution arm under the Central Group of Companies, to open fashion shops at PTT stations in tourist destinations.
PTTRM itself would invest about 2 billion baht between this and next year to improve the front and back-office system, expanding the PTT Platinum station concept that was recognised as a premium brand for its good service quality and operating expense control.
Tuesday, September 15, 2009
UK brand given new look
Central Department Store Co, the local franchisee of the UK-based Marks &Spencer chain, plans to introduce a new look for all outlets to celebrate the store's 125th anniversary.
The revamp has been launched at the new store at CentralPlaza Chaengwattana and received a good response from customers,said Nidsinee Chirathivat, Central Department Store's executive vice-president for merchandise.
The store's new look also won an award from the parent firm as one of the top seven stores in terms of store design among its network across 30 countries.
Central Department Store is investing 10 million baht to implement the second new concept store at Bang Na. Marks &Spencer Bang Na will have a modern look and be easy for customer to buy products, she said.
The company will then make over its outlets on Rama III Road this year and another two at Pin Klao and Rama II next year.
By 2010, the company expects all 10 of its current outlets will be fully modernised at a cost of 5-10 million baht,depending on store size.
"The company expects sales of Marks & Spencer will rise by 20% after the completion of all renovation works,"said Ms Nidsinee.
Marks & Spencer started improving its store concept last year with an aim of modernising its look for all outlets worldwide.
Yuwadee Chirathivat, the company's president said the company has also completed a 300-million-baht facelift at Central Department Store Bang Na,aimed at upgrading the store's image to be on par with that of the Chidlom branch. At least 17 fashion brands including Next Phase and Muji were added.
The revamp has been launched at the new store at CentralPlaza Chaengwattana and received a good response from customers,said Nidsinee Chirathivat, Central Department Store's executive vice-president for merchandise.
The store's new look also won an award from the parent firm as one of the top seven stores in terms of store design among its network across 30 countries.
Central Department Store is investing 10 million baht to implement the second new concept store at Bang Na. Marks &Spencer Bang Na will have a modern look and be easy for customer to buy products, she said.
The company will then make over its outlets on Rama III Road this year and another two at Pin Klao and Rama II next year.
By 2010, the company expects all 10 of its current outlets will be fully modernised at a cost of 5-10 million baht,depending on store size.
"The company expects sales of Marks & Spencer will rise by 20% after the completion of all renovation works,"said Ms Nidsinee.
Marks & Spencer started improving its store concept last year with an aim of modernising its look for all outlets worldwide.
Yuwadee Chirathivat, the company's president said the company has also completed a 300-million-baht facelift at Central Department Store Bang Na,aimed at upgrading the store's image to be on par with that of the Chidlom branch. At least 17 fashion brands including Next Phase and Muji were added.
Sunday, September 13, 2009
PORNTHIP PLANS OUTLETS TO PREPARE FOR RECOVERY
The nascent recovery in the Kingdom's tourism business has prompted Phuket-based souvenir and seafood-snack vendor Pornthip Co to open three new outlets along some of the country's major highways and to add 7-Eleven convenience stores to its distribution network.
Pornthip,which recently won the Prime Minister's Award 2009 in the Otop Export Recognition category,targets total sales of at least Bt100 million this year.
The firm expects the tourism industry to grow significantly in the fourth quarter, said managing director Wirawat Peamwiwattikul.
"The expected global economic recovery will encourage greater numbers of tourists to visit the country.
"To reap the benefits of this recovery, the company will open new outlets and expand its distribution channels,"Wirawat said.
The Economic and Business Forecasting centre predicts tourism in Thailand will grow by 4 per cent in the fourth quarter.
Last year, the company achieved sales revenue of Bt70 million. Despite this year's economic slowdown and drop in tourism,the firm is confident that the three new outllets it has planned will boost its income. Of Pornthip's total income, 80 per cent is generated from domestic sales, and the remainder from exports.
Wirawat said new Pornthip shops will be set up at PTT petrol stations located along highways connecting Bangkok to popular tourist destinations.
It will also start selling products at 7-Eleven convenience stores nationwide in a bid to move beyond the tourist market and reach ordinary Thai consumers.
The firm offers more than 1,000 products under the Pornthip brand, incluuding seafood snacks,flossy and crispy baked pork, Thai desserts, OTOP(One Tambon, One Product goods, clothes, batiks and decorative items.
Wirawat said the firm's products have received a good response from Thai and foreign travellers alike.
He attributed this to Pornthip's attention not only to product quality, but also to innovation and packaging.
The firm also plans to seek new export markets, including Japan and countries in the Middle East. It expects exports to account for 30 to 40 per cent of total revenue within two years. Pornthip currently exports to singapore, Malaysia, Hong Kong, Australia, the European Union and the US.
WIRAWAT and his wife Pornthip show some of their food products to be sold both in its outlets and convenience stores.
Pornthip,which recently won the Prime Minister's Award 2009 in the Otop Export Recognition category,targets total sales of at least Bt100 million this year.
The firm expects the tourism industry to grow significantly in the fourth quarter, said managing director Wirawat Peamwiwattikul.
"The expected global economic recovery will encourage greater numbers of tourists to visit the country.
"To reap the benefits of this recovery, the company will open new outlets and expand its distribution channels,"Wirawat said.
The Economic and Business Forecasting centre predicts tourism in Thailand will grow by 4 per cent in the fourth quarter.
Last year, the company achieved sales revenue of Bt70 million. Despite this year's economic slowdown and drop in tourism,the firm is confident that the three new outllets it has planned will boost its income. Of Pornthip's total income, 80 per cent is generated from domestic sales, and the remainder from exports.
Wirawat said new Pornthip shops will be set up at PTT petrol stations located along highways connecting Bangkok to popular tourist destinations.
It will also start selling products at 7-Eleven convenience stores nationwide in a bid to move beyond the tourist market and reach ordinary Thai consumers.
The firm offers more than 1,000 products under the Pornthip brand, incluuding seafood snacks,flossy and crispy baked pork, Thai desserts, OTOP(One Tambon, One Product goods, clothes, batiks and decorative items.
Wirawat said the firm's products have received a good response from Thai and foreign travellers alike.
He attributed this to Pornthip's attention not only to product quality, but also to innovation and packaging.
The firm also plans to seek new export markets, including Japan and countries in the Middle East. It expects exports to account for 30 to 40 per cent of total revenue within two years. Pornthip currently exports to singapore, Malaysia, Hong Kong, Australia, the European Union and the US.
WIRAWAT and his wife Pornthip show some of their food products to be sold both in its outlets and convenience stores.
Friday, September 11, 2009
New tour firm enters e-commerce
4P Plus, a newly established tour operator, is moving into e-commerce by launching four websites to capture the fastgrowing Free Individual Traveller (FIT) and corporate groups.
The company was formed in the middle of last year by Pruet Narathuschan, youngest son of Vithaya Narathuschan, who has been running the Dynasty Hotel Bangkok for more than two decades and is also a jewellery exporter.
With Bt3 million in registered capital, the company began operations by concentrating mainly on inbound business from the United Kingdom and China, where Pruet's school friends are.
However, the business was hit hard by the airport closures in Bangkok late last year and the general political turmoil in the Kingdom. the number of clients dropped significantly.
"The company is revising its strategy to focus on domestic tourism, FIT and outbound instead," siad Pruet.
The company has set up a telemarketing team to approach companies and organisations for small-group and outdoor meetings and conference trips and other types of activities such as promotions, public rrelations, educational seminars and staff parties.
Meanwhile, it has launched four websites: www.tforthailand.com support inbound business, www.thehipexperience.com is aimed at high-end group, www.mushroomtravel.com is for outbound business and the latest www.tourscan.com is designed to draw FIT travellers.
"We're one of the few tour operators providing one-stop services for information, air tickets, hotel rooms and tailormade packages with a lowest-price warrantee to fit the client's budget," Puret said.
"Our philosophy is to render the highest quality service to our clients and offer a full range of services t meet their travel requirements."
The company was formed in the middle of last year by Pruet Narathuschan, youngest son of Vithaya Narathuschan, who has been running the Dynasty Hotel Bangkok for more than two decades and is also a jewellery exporter.
With Bt3 million in registered capital, the company began operations by concentrating mainly on inbound business from the United Kingdom and China, where Pruet's school friends are.
However, the business was hit hard by the airport closures in Bangkok late last year and the general political turmoil in the Kingdom. the number of clients dropped significantly.
"The company is revising its strategy to focus on domestic tourism, FIT and outbound instead," siad Pruet.
The company has set up a telemarketing team to approach companies and organisations for small-group and outdoor meetings and conference trips and other types of activities such as promotions, public rrelations, educational seminars and staff parties.
Meanwhile, it has launched four websites: www.tforthailand.com support inbound business, www.thehipexperience.com is aimed at high-end group, www.mushroomtravel.com is for outbound business and the latest www.tourscan.com is designed to draw FIT travellers.
"We're one of the few tour operators providing one-stop services for information, air tickets, hotel rooms and tailormade packages with a lowest-price warrantee to fit the client's budget," Puret said.
"Our philosophy is to render the highest quality service to our clients and offer a full range of services t meet their travel requirements."
Tuesday, September 8, 2009
Giant retailers bank on card schemes for customer loyalty
Leading hypermarket chains are competing in the launch of loyalty card programmes to retain customers amid the current economic recession.
The move follows changes in the behaviour of shoppers who have less loyalty to any particular store and prefer to switch their purchases to other stores depending on special promotions.
Jariya Chirathivat, vice peresident, marketing and communications, Big C Supermarket, said the competition among hypermarket chains is more intense as their retail sites are located in close vicinity. So, individual shoppers are able to switch from one store to another easily.
"Amid the current economic difficulties, consumers are switching to hypermarkets along with their temporary promotional campaign. What we [Big C] want to do is to launch a loyalty programme to retain our customers and prevent them from switching to the other stores.
"Under the loyalty programme, our existing clients will not be tempted by any temporary promotion launched by our retail rivals," said Jariya.
Big C Supercentre yesterday unveiled the 'Bigcard' to best satisfy consumers with uniquely remarkable benefits featuring 'Instant Money Back and Monthly Crazy Price' that give consumers up to 1 per cent cash back with Bt5 for any purchase over Bt500 and monthly price promotion on a wide variety of mass consumer items.
Holders of Bigcard will also benefit from special discounts at Mini Big C, Pure and other leading participating retail shops; and 'Extra Bt5' when purchasing a Bt100 food coupon at Big C food courts.
In the past three years, Big C has gained insights into consumer behaviour through the collection of data on customers' spending habits. Based on the study, the three main reasons that motivate coustomers to shop are: price, assortment, and convenience. Any loyalty programme needs to answer and emphasise on these three criteria.
"We expect to have about 4 million members by the end of this year, and up to 5 million members next year," Jariya said.
She added that the card programme will increase Big C's sale by 15 per cent. The loyalty-card programme will help boost the basket size of shoppers.
Prapapan Ploysaengngam, marketing manager at Carrefour, said the company has launched its loyalty card programme - "Carrefour I Wish - for almost one and half years, and now has about 1.6 million members.
The company has designed various promotions and privileges exclusively for its members, including special price promotion and cash coupon.
She said that based on the company's study, shoppers prefer immediate discount or money-back promotions rather than any point collection campaign, which takes a certain period of time for redemption.
Yupadee Srisilapa, Tesco Lotus, senior marketing manager, Clubcard, said: "Our clubcard programme aims to give full flexibility and benefits to our customers. This is why there is no requirement on minimum spending for Clubcard holders for them to receive points. There is no expiry date for the points accumulated. The longer you stay a costomer, the more the number of points accumulated. There is also no lomit on the number of points per day. The more you spend, the more your points. Once your points have been converted to cash vouchers, they are valid for one year," she said.
Tesco Lotus said its 'Clubcard' has received an enthusiastic response from Thai customers across the country and is more than half way towards reaching the target of 4 million customers in the first year.
Less than three weeks after its launch, which was made late last month, more than 2 million customers have signed up for and have used their own Clubcard to start collecting points.
The move follows changes in the behaviour of shoppers who have less loyalty to any particular store and prefer to switch their purchases to other stores depending on special promotions.
Jariya Chirathivat, vice peresident, marketing and communications, Big C Supermarket, said the competition among hypermarket chains is more intense as their retail sites are located in close vicinity. So, individual shoppers are able to switch from one store to another easily.
"Amid the current economic difficulties, consumers are switching to hypermarkets along with their temporary promotional campaign. What we [Big C] want to do is to launch a loyalty programme to retain our customers and prevent them from switching to the other stores.
"Under the loyalty programme, our existing clients will not be tempted by any temporary promotion launched by our retail rivals," said Jariya.
Big C Supercentre yesterday unveiled the 'Bigcard' to best satisfy consumers with uniquely remarkable benefits featuring 'Instant Money Back and Monthly Crazy Price' that give consumers up to 1 per cent cash back with Bt5 for any purchase over Bt500 and monthly price promotion on a wide variety of mass consumer items.
Holders of Bigcard will also benefit from special discounts at Mini Big C, Pure and other leading participating retail shops; and 'Extra Bt5' when purchasing a Bt100 food coupon at Big C food courts.
In the past three years, Big C has gained insights into consumer behaviour through the collection of data on customers' spending habits. Based on the study, the three main reasons that motivate coustomers to shop are: price, assortment, and convenience. Any loyalty programme needs to answer and emphasise on these three criteria.
"We expect to have about 4 million members by the end of this year, and up to 5 million members next year," Jariya said.
She added that the card programme will increase Big C's sale by 15 per cent. The loyalty-card programme will help boost the basket size of shoppers.
Prapapan Ploysaengngam, marketing manager at Carrefour, said the company has launched its loyalty card programme - "Carrefour I Wish - for almost one and half years, and now has about 1.6 million members.
The company has designed various promotions and privileges exclusively for its members, including special price promotion and cash coupon.
She said that based on the company's study, shoppers prefer immediate discount or money-back promotions rather than any point collection campaign, which takes a certain period of time for redemption.
Yupadee Srisilapa, Tesco Lotus, senior marketing manager, Clubcard, said: "Our clubcard programme aims to give full flexibility and benefits to our customers. This is why there is no requirement on minimum spending for Clubcard holders for them to receive points. There is no expiry date for the points accumulated. The longer you stay a costomer, the more the number of points accumulated. There is also no lomit on the number of points per day. The more you spend, the more your points. Once your points have been converted to cash vouchers, they are valid for one year," she said.
Tesco Lotus said its 'Clubcard' has received an enthusiastic response from Thai customers across the country and is more than half way towards reaching the target of 4 million customers in the first year.
Less than three weeks after its launch, which was made late last month, more than 2 million customers have signed up for and have used their own Clubcard to start collecting points.
Sunday, September 6, 2009
THE TRADITION THAT STAYS AFLOAT
It's scenario familiar to everyone in Thailand, if not the foreign tourists: floating market thrives in simpler, quainter times; declines with the advent of the automobile; is revived as a tourist attraction; becomes so commercial that all the old charm is lost forever.
The market at Damneum Saduek is a case in point - still popular and photogenic, but hyped beyond recognition of its original appeal.
Elsewhere, though, the story's not so dismaying. Amphawa, Bang Nam Phueng and other floating markets are flourishing in the central region, and their ties to the farming community remain strong.
Bangkok's Taling Chan Market, perched on the Khlong Chak Pra Canal and fresh with fruit trees and orchids, is still the area's main destination for farm produce. The choice is bountiful on both sides of the streets and on the boats that punt and putter about.
The market itself is smaller than many, making it perfect for short strolls and careful browsing. You can taste a lot of the food on your way to the canal, where the tour really begins.
All of Taling Chan district waits to be discovered by boat, and it's an interesting, relaxing sightseeing excursion among the old houses, orchid gardens, fruit farms and temples.
The Taling Chan weekend market was the first to be established in suburban Bangkok. The district office and local farmers set it up in 1987, using five large bamboo rafts. A dozen years later there were 11 rafts, by then made of steel rather than bamboo.
These days the market is open at 8.30am and keeps going through the afternoon. Getting there early is best so that you can have a look around the district and visit other markets that have popped up more recently.
The same district has the Khlong Lad Mayom floating market, just three years old but already quite popular among weekenders and families. Its founder was farmer Chuen Choochan, known as Uncle Chuen.
"As the city expanded I could see the farm landscape and the environment declining day by day," Chuen recalls. "I thought, with the market, at least I could introduce a new direction in the development, something more desirable."
He began by cleaning out the canal, paddling along and collecting trash. Then he recruited his fellow farmers to open a small weekend market. They brought in their produce and set up stalls on the canal bank.
As well as extra income for the, the market has boosted citizens' appreciation of their own neighbourhood - visitors have been full of praise for its charm and serenity.
As at any other market, the food is the big draw. You can keep munching all the way along, sampling fresh fruit and vegetables and finger snacks between purchases of crafts, souvenirs and other goods, or sit down for a plate of grilled prawns in a spicy dip.
At one end of the market is Suan Jiem Ton, a small farm that welcomes visitors. You can see how things are done on a real farm.
And not far from Khlong Lad Mayom is yet another new floating market, at Wat Saphan. From small beginnings in the grounds of the 200-year-old temple, it's grown into an appealing destination of its own, crowding along a bank of the Bang Noi Canal.
Basically a small gathering of boatstalls in a square "marina" in front of the temple, it's great reminder of the good old days when the neighbourhood wat was the centre of life.
The hungry locals mill in with the visiting curious at lunchtime and stroll around in search of their favourite meals. Once they've ordered a dish, they find a spot in the shade and wait for it to be prepared.
The Wat Saphan market was established purely for tourists, to bolster the local income and liven things up. Merit making is popular with visitors. After filling their stomachs, they enter the temple hall, pay respect to the big Buddha images and onate some money.
So here's weekend getaway that not only involves a soothing, nostalgic trip to the suburbs but a chance to get inside a temple, if you haven't been in a while.
A little spiritual succour certainly won't hurt, before you head back to that big concrete zoo.
The market at Damneum Saduek is a case in point - still popular and photogenic, but hyped beyond recognition of its original appeal.
Elsewhere, though, the story's not so dismaying. Amphawa, Bang Nam Phueng and other floating markets are flourishing in the central region, and their ties to the farming community remain strong.
Bangkok's Taling Chan Market, perched on the Khlong Chak Pra Canal and fresh with fruit trees and orchids, is still the area's main destination for farm produce. The choice is bountiful on both sides of the streets and on the boats that punt and putter about.
The market itself is smaller than many, making it perfect for short strolls and careful browsing. You can taste a lot of the food on your way to the canal, where the tour really begins.
All of Taling Chan district waits to be discovered by boat, and it's an interesting, relaxing sightseeing excursion among the old houses, orchid gardens, fruit farms and temples.
The Taling Chan weekend market was the first to be established in suburban Bangkok. The district office and local farmers set it up in 1987, using five large bamboo rafts. A dozen years later there were 11 rafts, by then made of steel rather than bamboo.
These days the market is open at 8.30am and keeps going through the afternoon. Getting there early is best so that you can have a look around the district and visit other markets that have popped up more recently.
The same district has the Khlong Lad Mayom floating market, just three years old but already quite popular among weekenders and families. Its founder was farmer Chuen Choochan, known as Uncle Chuen.
"As the city expanded I could see the farm landscape and the environment declining day by day," Chuen recalls. "I thought, with the market, at least I could introduce a new direction in the development, something more desirable."
He began by cleaning out the canal, paddling along and collecting trash. Then he recruited his fellow farmers to open a small weekend market. They brought in their produce and set up stalls on the canal bank.
As well as extra income for the, the market has boosted citizens' appreciation of their own neighbourhood - visitors have been full of praise for its charm and serenity.
As at any other market, the food is the big draw. You can keep munching all the way along, sampling fresh fruit and vegetables and finger snacks between purchases of crafts, souvenirs and other goods, or sit down for a plate of grilled prawns in a spicy dip.
At one end of the market is Suan Jiem Ton, a small farm that welcomes visitors. You can see how things are done on a real farm.
And not far from Khlong Lad Mayom is yet another new floating market, at Wat Saphan. From small beginnings in the grounds of the 200-year-old temple, it's grown into an appealing destination of its own, crowding along a bank of the Bang Noi Canal.
Basically a small gathering of boatstalls in a square "marina" in front of the temple, it's great reminder of the good old days when the neighbourhood wat was the centre of life.
The hungry locals mill in with the visiting curious at lunchtime and stroll around in search of their favourite meals. Once they've ordered a dish, they find a spot in the shade and wait for it to be prepared.
The Wat Saphan market was established purely for tourists, to bolster the local income and liven things up. Merit making is popular with visitors. After filling their stomachs, they enter the temple hall, pay respect to the big Buddha images and onate some money.
So here's weekend getaway that not only involves a soothing, nostalgic trip to the suburbs but a chance to get inside a temple, if you haven't been in a while.
A little spiritual succour certainly won't hurt, before you head back to that big concrete zoo.
Thursday, September 3, 2009
MAJOR STORES SPEND BIG TO CONTAIN SPREAD OF FLU
Major retail chains such as Central Pattana and The Mall Group are taking type-A(H1N1) flu preventive measures seriously, setting long-term policies and sparing no expense to protect shoppers.
Nataphong Kitnitchiva, group general manager for operations at The Mall Group, said yesterday that a flu protection plan has been drawn up as a long-term policy for the operator's four The Mall department stores as well as its Emporium Shopping Complex and Siam Paragon.
"The company's board of directors has given the green light to management to spend an unlimited budget on anti-flu measures. The board sees this as an important policy to carry out without any conditions," he said.
The company's response to the influenza outbreak was quite expensive as it has to purchase more than 1,000 litres per week of hand-wash gel for all six locations, he added.
Sakorn Thavisin, senior manager for marketing at Central Pattana, said Central runs 35 branches nationwide, which welcome more than 1.5 million visitors per day, so it has been ready to prepare measures since the flu hit Thailand.
Besides preparing bottles of gel at store entrances and clean shopping carts for customers, other modern trade stores such Carrefour and Big C Supercentre have also spent money for their employees to get injections.
Seacon Square has added fresh air to its shopping mall in order to have clean air flowing throughout the day.
Yesterday, nine retailers joined the Public Health Ministry and Thai Health Promotion Foundation to provide space near their shopping malls and modern trade stores for exercise sessions starting on Wednesday.
The retailers are Central Pattana, The Mall Group, Tesco Lotus, Seacon Square, Future Park Rangsit and Fashion Island, Big C Supercentre and Carrefour.
Public Health Minister Witthaya Kaewparadai said those nine retailers had more than 1,200 outlets across the country welcoming more than a million shoppers per day.
They so far have provided good care for their customers but the new collaboration will emphasise and show their commitment to protect customers from type-A(H1N1) flu as well as other seasonal flu, he added.
Nataphong Kitnitchiva, group general manager for operations at The Mall Group, said yesterday that a flu protection plan has been drawn up as a long-term policy for the operator's four The Mall department stores as well as its Emporium Shopping Complex and Siam Paragon.
"The company's board of directors has given the green light to management to spend an unlimited budget on anti-flu measures. The board sees this as an important policy to carry out without any conditions," he said.
The company's response to the influenza outbreak was quite expensive as it has to purchase more than 1,000 litres per week of hand-wash gel for all six locations, he added.
Sakorn Thavisin, senior manager for marketing at Central Pattana, said Central runs 35 branches nationwide, which welcome more than 1.5 million visitors per day, so it has been ready to prepare measures since the flu hit Thailand.
Besides preparing bottles of gel at store entrances and clean shopping carts for customers, other modern trade stores such Carrefour and Big C Supercentre have also spent money for their employees to get injections.
Seacon Square has added fresh air to its shopping mall in order to have clean air flowing throughout the day.
Yesterday, nine retailers joined the Public Health Ministry and Thai Health Promotion Foundation to provide space near their shopping malls and modern trade stores for exercise sessions starting on Wednesday.
The retailers are Central Pattana, The Mall Group, Tesco Lotus, Seacon Square, Future Park Rangsit and Fashion Island, Big C Supercentre and Carrefour.
Public Health Minister Witthaya Kaewparadai said those nine retailers had more than 1,200 outlets across the country welcoming more than a million shoppers per day.
They so far have provided good care for their customers but the new collaboration will emphasise and show their commitment to protect customers from type-A(H1N1) flu as well as other seasonal flu, he added.
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