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.